A recent survey by YouGov, commissioned by SAP, shows that UAE companies are embracing cloud computing at an accelerated pace and plan significant investments in artificial intelligence (AI) within the next 15 months. The study highlights critical factors for successful AI implementation, such as the operation of core business functions on the cloud, the current use of AI, data quality, and the AI expertise within organizations.
The survey reveals that 67% of UAE enterprises have already migrated their core business processes to the cloud, with an additional 22% planning to do so within the next 15 months. Hosting enterprise resource planning (ERP) systems on the cloud enables more effective AI usage, as it allows for real-time data access, scalable computing power, and seamless integration of advanced AI models into business operations.
In terms of AI adoption, most companies are already utilizing AI in key business functions like marketing (42%), customer service (40%), sales (38%), and finance (38%). However, AI adoption is still relatively low in supply chain and logistics (27%) and product or service development (27%).
Marwan Zeineddine, Managing Director of SAP UAE, expressed optimism about the increasing shift to cloud computing but noted that many businesses have yet to harness the full potential of AI across all areas of their operations. He emphasized the importance of accessible, high-quality data, which is essential for AI systems to generate reliable insights. Although 65% of respondents were confident in the quality of their data, this proportion is expected to grow as more companies migrate their core operations to the cloud.
To enhance data quality, SAP recommends using solutions such as SAP S/4HANA for ERP, which helps businesses organize clean data and support accurate AI-driven insights for forecasting demand, streamlining supply chains, and ensuring fairness in AI models.
The survey also identified key challenges in AI implementation, including difficulties in integrating AI with existing systems and a shortage of skilled personnel, both cited by 43% of respondents. Privacy, security concerns, and costs were also significant issues, noted by 40% of businesses. Zeineddine pointed out that embedded AI solutions, such as SAP’s Joule, are making AI more accessible by providing tailored insights and simplifying workflows across various business functions, from procurement to finance.
Globally, SAP’s Business AI has become increasingly important, as demonstrated by the company’s strong Q3 2024 earnings, where 30% of customer deals included AI use cases. Zeineddine anticipates that this trend will continue in the UAE, highlighting how SAP’s integrated Business AI capabilities eliminate the need for separate AI products, offering more streamlined and industry-specific solutions.
To address the growing demand for AI expertise, SAP is investing in training initiatives like the SAP Dual Study Program and the SAP Young Professionals Programme, which aim to equip young professionals with essential AI skills and hands-on experience using SAP’s latest AI-infused solutions.
