Artificial Intelligence (AI) continues to be a top priority for business leaders globally in 2025, with a particular emphasis on achieving tangible results. According to the latest AI Radar survey by Boston Consulting Group (BCG), one in three companies worldwide plans to invest over $25 million in AI this year. In the GCC, one in four companies is set to make similar investments.
The survey, which includes insights from 1,803 C-level executives across 19 markets and 12 industries, underscores the widespread optimism about AI’s potential, tempered by challenges in fully realizing its value. In the GCC, companies are focusing their AI investments on reshaping core business functions and developing entirely new AI-powered business models. The reshaping involves improving operational efficiency, while new business models create previously unattainable offerings through AI.
Reflecting this strategic focus, 81% of GCC companies plan to increase technology investments in 2025, and 72% consider AI/GenAI a top-three strategic priority. At the country level, AI/GenAI ranks as a top priority for 88% of executives in Qatar, 72% in the UAE, and 69% in Saudi Arabia, surpassing the global average of 73%.
In the region, 66% of executives expect AI to boost productivity, though they acknowledge the need to prepare the workforce for AI demands. A standout finding is that only 7% of executives in the Middle East anticipate job reductions due to AI automation, a lower percentage than the global average of 8%.
GCC organizations are adopting the “10-20-70 principle” to ensure successful AI implementation. This framework focuses 10% on algorithms, 20% on data and technology, and 70% on people, processes, and cultural transformation.
Despite the optimism, regional executives are also aware of risks such as data privacy, AI decision-making control, and regulatory challenges. Addressing these concerns is critical to ensure the ethical and practical adoption of AI.
Robert Xu, Managing Director at BCG X, noted, “The GCC’s approach to AI is evolving. It is no longer about selective implementation; AI should be integrated into all roles and processes. The region is not only adopting technology but also training the workforce to remain competitive.”
GCC organizations are moving beyond technology acquisition and focusing on strategic value creation, reflecting a mature approach to digital transformation. Dr. Lars Littig, Managing Director at BCG, emphasized that the region’s long-term investment in AI shows a deeper understanding of its socio-economic impact, setting the GCC apart from other regions.
