MIT Sloan Management Review Middle East, in collaboration with Astra Tech, has released a comprehensive white paper titled ‘Leveraging Actionable Gen AI in the Middle East’ to kick off 2025 amid rapid technological evolution. The report delves into the transformative opportunities presented by Large Language Models (LLMs), Small Language Models (SLMs), and Large Action Models (LAMs), particularly focusing on how businesses in the UAE and the wider Middle East are utilizing these AI models to gain a competitive edge.
The survey found that 53.25% of respondents were from the UAE, emphasizing the country’s leading role in AI adoption, especially in areas like customer service and product development. Nearly half (44.74%) of businesses in the UAE are integrating LLMs/SLMs into their operations, underlining the country’s commitment to enhancing customer interactions and personalizing product offerings.
Astra Tech’s Senior Vice President of Technology, Hassan Al Noon, commented on the white paper, stating, “The findings highlight the immense potential AI holds for transforming industries in the Middle East. This report provides a localized perspective, addressing cultural sensitivities and regulatory compliance, ensuring AI initiatives are impactful and sustainable.”
Ravi Raman, Publisher of MIT SMR Middle East, also discussed the white paper’s findings: “MIT Sloan Management Review is renowned for its thorough research, and this white paper serves as a guide for business leaders, technologists, and policymakers seeking to understand the transformative power of these advanced technologies.”
The survey reveals key insights into AI adoption across the region: 27% of businesses are actively exploring AI, 36% are in the initial adoption stages, 13% have deeply integrated AI, and another 13% are at the forefront of innovative AI usage. A further 9% of companies are focusing on monetizing AI capabilities. These statistics showcase the growing recognition of AI’s potential and the UAE’s willingness to experiment with AI technologies across various sectors to drive operational efficiencies and improve customer experiences.
The survey also highlights how users in the UAE are interacting with AI-powered features. 46% of respondents use AI for information retrieval, 33% for customer service, and 13% for personalized recommendations, signaling the growing role of AI in shaping consumer behavior.
In the retail sector, many Middle Eastern businesses, especially those in the UAE, are adopting LLMs/SLMs and LAMs to offer personalized shopping experiences. AI-driven product recommendations based on individual browsing and purchase histories are enhancing customer satisfaction and optimizing the shopping journey.
Given rising concerns about security and privacy in the region, some businesses are developing in-house language models that are trained on region-specific compliance data. These models act as conversational bots, aiding compliance officers and improving productivity.
The survey includes insights from senior executives and managers across various industries, with a strong representation of respondents from the UAE, highlighting the country’s leadership in AI adoption across the region.
