UAE Tech Leaders Set to Drive Digital Innovation with AI and Cloud Investments, Says KPMG Report

Dubai, UAE – The UAE is emerging as a leader in AI adoption and digital transformation, with a significant majority of tech leaders planning to invest in advanced technologies over the next year. According to KPMG UAE’s latest report, ‘Tech Titans Blueprint’, 96% of UAE tech leaders intend to enhance their cloud capabilities, including the adoption of XaaS technologies, such as public and multi-cloud services, to strengthen the country’s digital economy.

The report shows that nearly half (41%) of UAE tech leaders expect to leverage AI to improve operational efficiency, while 27% aim to automate customer experiences using AI in the next two years. AI’s role in enhancing productivity and filling skill gaps is also a priority, with 82% of global tech leaders expecting AI to transform knowledge creation and sharing within the next decade. However, the UAE’s expectation for AI’s impact on knowledge transformation is slightly lower, at 73%.

The UAE also outpaces the global average in adopting edge computing, with 99% of tech leaders using it compared to 97% globally. This highlights the country’s focus on real-time data processing and reducing latency, essential for supporting its evolving digital economy.

While UAE tech leaders express confidence in AI’s ability to drive financial and operational gains, there is a gap in how AI is viewed in terms of environmental and community impact. Nevertheless, a vast majority (96%) are planning to invest in XaaS technologies, and 40% will prioritize data security, with 37% focusing on data accessibility and democratization.

The report underscores the UAE’s dedication to fostering innovation, especially in the integration of AI and cloud computing. “The UAE’s strategic investments in technology are setting new standards in innovation, especially when integrating AI and cloud computing. This has created a dynamic environment that will support rapid technological evolution,” said Mohamad Majid, Partner, Digital and Innovation at KPMG Lower Gulf.

The UAE’s strong cybersecurity posture is also noteworthy, with 100% of tech leaders adopting cybersecurity measures, ensuring the protection of digital assets. However, securing executive buy-in and investment approval remains a challenge, with only 3% of UAE tech leaders in the early strategic design phase for AI, compared to the global average of 11%.

Looking ahead, 81% of UAE and global leaders believe AI will automate routine tasks, with 77% expecting a shift towards more strategic and creative roles. This trend underscores the role of AI in reshaping the workforce and enhancing the overall value derived from tech investments.

Methodology

KPMG’s report surveyed 2,450 technology professionals globally, including 70 respondents from the UAE, representing a variety of industries such as retail, education, energy, finance, government, healthcare, and technology. All companies surveyed reported annual revenues of $250 million or more, with employees ranging from under 100 to over 10,000.

About KPMG

KPMG is a global network of professional services firms providing audit, tax, and advisory services. With over 236,000 employees worldwide, KPMG operates in 145 countries and territories. For more information, visit www.kpmg.com/governance.

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