Photo: Mohamad Majid, Partner, Digital and Innovation at KPMG Lower Gulf.
The UAE is emerging as a trailblazer in AI adoption, with leaders implementing AI and data analytics and a vast majority (96%) planning to enhance cloud capabilities in the next 12 months. KPMG UAE’s latest annual tech report, ‘Tech Titans Blueprint’, shows that the country’s robust digitalization and tech adoption strategy is paving the way for a resilient digital economy. Nearly half (41%) of survey respondents expect to leverage AI to enhance operational efficiency, and 27% believe AI will assist in automating the customer experience over the next two years.
The UAE also displayed a higher adoption of edge computing (99%) compared to the global average (97%), reflecting their focus on enhancing real-time data processing and reducing latency – both crucial to support a digital economy. Both global and UAE tech leaders were aligned on AI’s role in filling skill gaps and enhancing productivity, although UAE leaders are slightly less confident about AI’s impact on innovation compared to their global counterparts.
Mohamad Majid, Partner, Digital and Innovation at KPMG Lower Gulf, said: “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 to support the rapid evolution of technology innovation across organizations. As the UAE positions itself as a global technology hub, this integration of cutting-edge solutions will be essential to maintaining competitiveness and fostering economic growth.”
Even as UAE leaders were more confident of AI driving financial and operational metrics compared to their global peers, there was a gap in environmental and community impact metrics, highlighting potential areas for growth. On the brighter side, a vast majority (96%) said they were planning to invest in XaaS technologies, and 40% were ready to prioritize data security, with 37% focusing on data accessibility and democratization over the next 12 months.
The widespread adoption of cybersecurity measures by tech leaders in the UAE (100%) and globally (99%) underpins their commitment to safeguarding digital assets and maintaining a robust security posture amid evolving threats. However, the research showed that it was more challenging for UAE tech leaders to secure executive buy-in and investment approval. Consequently, significantly fewer UAE tech leaders (3%) are in the early strategic design phase compared to the global average (11%), suggesting scope for advanced stages of AI implementation in the UAE.
Over the next decade, 82% of tech leaders globally foresee AI transforming knowledge creation and sharing. In the UAE, this expectation is slightly lower at 73%; however, 67% are satisfied with the amount of value generated through tech investments. When it comes to job restructuring, 81% of leaders in the UAE and worldwide believe AI will automate routine tasks, with 77% in the UAE foreseeing a shift toward more strategic and creative roles.
Methodology of the report
KPMG surveyed 2,450 technology professionals globally, including 70 in the UAE. The UAE respondents worked in various industries, including consumer and retail, higher education, energy, financial services, government and public sector, healthcare, industrial manufacturing, life sciences and pharmaceuticals, and technology. The companies they were a part of all reported USD 250 million or above in annual revenue. The companies’ sizes varied from less than 100 employees to more than 10,000.
About KPMG
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 145 countries and territories, with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
For more details about our structure, please visit home.kpmg/governance
