Artificial intelligence (AI) has become a cornerstone of Saudi Arabia’s economic strategy, accelerating industries driven by data and automation. As the Kingdom progresses through Saudi Vision 2030, AI is projected to contribute $235.2 billion, or 12.4% of GDP, by 2030, positioning Saudi Arabia as a global leader in AI innovation.
Key initiatives such as the $100 billion Project Transcendence, alongside the establishment of the Saudi Data and AI Authority (SDAIA) in 2019, have laid the foundation for integrating AI across both public and private sectors. The number of AI-related companies in Saudi Arabia surged to over 240 in 2023, with funding reaching $1.7 billion last year. Additionally, AI patents have grown fivefold since 2019, signaling strong momentum in the development of AI technologies.
The Kingdom’s AI agenda spans various industries, including retail, construction, logistics, and smart cities. Key trends shaping the AI landscape in Saudi Arabia include generative AI for Arabic content, Arabic natural language processing (NLP), AI-driven business transformation, education and workforce development, and a strong focus on ethical AI and privacy.
Generative AI tools, such as OpenAI’s ChatGPT, are helping businesses create localized content tailored to Arabic-speaking audiences. However, challenges remain in addressing the complexities of Arabic dialects, which local innovators like Lucidya are working to overcome. The development of large language models focused on Arabic is seen as essential for personalized marketing and multilingual communication.
AI-powered platforms are also transforming the education and workforce development sectors, in line with Vision 2030’s goal of cultivating a tech-savvy workforce. Programs like Oracle’s Mostaqbali initiative aim to equip thousands of Saudis with AI and emerging technology skills, supporting the Kingdom’s push for a digitally proficient workforce.
Saudi Arabia is setting global benchmarks for ethical AI practices, prioritizing transparency, data security, and responsible governance. The Kingdom’s commitment to privacy-preserving technologies, such as zero-knowledge proofs, ensures compliance with stringent data protection standards and fosters public trust.
Looking forward, AI’s role in automating processes, predictive analytics, and customer support will further elevate productivity across industries. However, a report from Cisco highlights that only 22% of Saudi companies currently have scalable AI infrastructure, pointing to the need for continued investment in both technology and personnel.
As Saudi Arabia continues to advance toward its Vision 2030 goals, its balanced approach to AI innovation and sustainability positions it as a global leader in the AI-driven digital transformation of economies.
About Zuhair Khayyat
Zuhair Khayyat is the co-founder and chief technology officer of Lucidya, an AI-powered platform for customer experience management.
