Aramco signs deal with Microsoft to advance industrial AI, digital transformation

Aramco and Microsoft have signed a non-binding memorandum of understanding (MoU) to explore a range of digital initiatives aimed at accelerating the adoption of industrial artificial intelligence (AI), strengthening digital capabilities, and advancing workforce development across Saudi Arabia.

The agreement builds on the long-standing collaboration between the two companies and focuses on advancing Aramco’s broader digital transformation agenda. Through the partnership, Aramco will explore AI-driven industrial solutions built on Microsoft Azure to enhance operational efficiency, improve global competitiveness, and support the evolution of technology-enabled energy and industrial systems.

The collaboration is centered on developing secure, intelligent digital ecosystems that enable innovation while maintaining strong governance and security standards. Both organizations aim to expand the role of AI within core industrial operations, moving beyond pilot projects toward scalable deployments that support resilience and performance at enterprise scale.

Key areas under discussion include digital sovereignty and data residency, with both companies exploring frameworks that align cloud deployments with national data requirements and sovereign controls. The MoU also outlines initiatives to streamline digital infrastructure across Aramco’s global operations, enabling more integrated and efficient systems that support large-scale industrial activity.

Another focus area involves establishing an industry alliance framework to engage Saudi technology integrators and ecosystem partners, encouraging broader AI adoption across the Kingdom’s industrial value chain. In addition, Aramco and Microsoft are evaluating opportunities for industrial AI co-innovation, including the potential development and commercialization of AI-powered operational systems that could contribute to global industry standards and promote Saudi expertise internationally.

The partnership also includes exploration of programmes designed to accelerate digital skills development in Saudi Arabia. These initiatives aim to build capabilities in areas such as AI engineering, cybersecurity, data governance, and product management, supporting workforce readiness for an increasingly digital industrial landscape. The efforts build on Microsoft’s existing national initiatives that have already supported training across cloud, AI, and data technologies.