Article: What is looming when AI is booming?

Artificial Intelligence (AI) is transforming hiring practices in the Middle East, with Saudi Arabia and the United Arab Emirates (UAE) leading this shift. AI adoption is reshaping various sectors, revolutionising industries, and improving quality of life too. Traditionally known for its oil reserves, the region is now a leader in AI. However, the World Economic Forum warns that AI could disrupt 23 per cent of jobs in the next five years. According to the WEF’s Future of Jobs report, 75 per cent of surveyed companies plan to integrate AI, with half expecting job creation and 25 per cent foreseeing job losses. Additionally, a CEO survey by PwC reflects that 72 per cent of business leaders in the Middle East anticipate that AI will require most of their workforce to develop new skills.

Also, security and privacy are essential for developing and deploying AI systems. The proliferation of AI increases the risk of data security and privacy violations. This risk necessitates stronger regulations and frameworks to protect sensitive information. A critical question is how to use AI ethically. Addressing this requires cooperation among ethicists, the technical community, policymakers, and other stakeholders to ensure fair and equitable AI systems.

Understanding the potential challenges and risks of widespread AI adoption is crucial. Examining its potential negative impacts on workplaces is essential.

Forecasts about AI in the Middle East region

The impact of AI in the Middle East will be significant. By 2030, AI is expected to contribute US $320 billion to the Middle East's regional economy, representing 2 per cent of global AI benefits. Saudi Arabia will lead this growth as AI is expected to contribute over US $135.2 billion (12.4 per cent of GDP). The UAE is projected to add US $96 billion, nearly 14 per cent of its 2030 GDP. AI is expected to contribute US $45.9 billion to Bahrain, Kuwait, Oman, and Qatar economy collectively. Artificial Intelligence is also expected to contribute an estimated sum of US $42.7 billion to the Egyptian economy. The region anticipates to see annual AI growth rates between 20 per cent and 34 per cent across various sectors.

The current landscape of AI adoption in the Middle East region

The Middle East region has experienced a rise in AI investment and research, particularly in the UAE, Saudi Arabia, and Qatar. These countries have integrated AI into their national economic development strategies. Industries and companies in the Middle East use AI to improve operations in their workplaces. In healthcare, for instance, Artificial Intelligence aids in battling the drug war through its discovery, medical diagnosis, and personalised patient care.

In banking and finance, AI transforms customer service and fraud detection. The UAE’s National Bank of Ras Al Khaimah (RAKBANK) uses chatbot technology to provide 24/7 customer support. Also, the transportation and logistics sectors use AI for route optimisation, predictive maintenance, and autonomous vehicles. Saudi Arabia’s NEOM smart city project, for example, aims to create an efficient urban environment through AI and automation.

These applications demonstrate AI's diverse potential and impact in the region. They also highlight its influence on the Middle Eastern job market.

Potential challenges, risks, and consequences of AI adoption

#1 Ethical concerns: The ethical considerations around AI's role in society are crucial. As AI grows more powerful and integrates deeply into our lives, we must ensure its use aligns with societal values and principles. Ethical concerns include privacy, bias, and the potential for AI to reinforce existing inequalities. We need strict regulations and ethical frameworks to address these concerns and ensure responsible development and use of AI technologies. By addressing these challenges proactively and implementing appropriate strategies, we can navigate AI's impact in a way that benefits both the workforce and society.

#2 Automation and job displacement: The implementation of AI technologies raises significant concerns about job displacement. Although automation can increase productivity and efficiency, it can also replace human labour in affected industries. This creates worries about job losses and the need for individuals to adapt to new roles or industries. As AI advances, certain roles and tasks traditionally done by humans may become automated.

#3 AI transparency: AI transparency refers to the algorithms and decision-making processes used by AI systems. It is essential for building credibility, trust, accountability, and user confidence. Transparency involves understanding how AI models work and what they do, including inputs, outputs, and the underlying logic. Techniques like explainable AI (XAI) provide understandable insights into complex AI systems. Clear documentation of data sources, model training methodologies, and performance metrics also promotes transparency. Promoting transparency enables organisations to demonstrate ethical AI practices, address bias, and help users make informed decisions based on AI-derived results.

#4 Bridging the skills gap through upskilling: The impact of AI on the workforce creates a growing skills gap. AI technologies generate new jobs for data analysts and AI engineers. However, most current workers lack the specialised skills needed for these roles. Employers must invest in extensive reskilling and upskilling programs to bridge this gap. Ensuring the workforce has the necessary skills and competencies is crucial to taking advantage of the opportunities provided by AI technologies.

#5 Bias in AI: Artificial intelligence can replicate and amplify biases in training data. This can result in unfair and unethical outcomes, particularly for marginalised communities. Examples include biassed hiring, loan approvals, and unequal criminal sentencing. To mitigate AI bias, deliberate data selection, preprocessing, and algorithm design are crucial. Ongoing monitoring and evaluation of AI systems help identify and correct bias, promoting fairness in AI-based decision-making.

#6 Data privacy and security: The main issues surrounding AI involve data security and privacy. AI systems need large amounts of data for operation and training. Ensuring data security, availability, and integrity prevents leaks, breaches, and misuse. Organisations must comply with data protection rules like the CCPA and GDPR by implementing access restrictions, encryption, and auditing capabilities.

#7 Limited knowledge: Limited knowledge among the general population hinders informed decision-making, adoption, and regulation of AI. Misconceptions and misinterpretations of AI's abilities and constraints persist, preventing its responsible use and promotion. We must develop and implement effective education and public awareness programs to ensure the public understands AI concepts, use cases, and potential effects.

You may also like:

Addressing AI's risk factors on the Middle East workplace

To ensure readiness for an AI-driven job market, education and training initiatives are essential. These programs equip the workforce with crucial AI skills, fostering success in AI-driven industries. Offering courses, workshops, and certifications covering AI concepts and applications supports continuous education, upskilling the workforce, and easing job transitions.

Also, using privacy-preserving and building trust among users such as differential privacy and federated learning is essential to minimise privacy risks while maintaining data utility. Accessible resources and training opportunities will help users utilise AI technology more effectively. Bridging the knowledge gap through interdisciplinary collaboration, community involvement, and outreach will allow society to benefit from AI.

Addressing AI's impact on employment requires collaboration between private and public sectors. Private companies share expertise, while governments develop supportive policies for AI integration. Implementing supportive policies aids workers affected by job displacement, offering retraining programs, subsidies, and job placement services.

AI is revolutionising workplaces in the Middle East. While it brings related risks, ethical AI deployment and robust regulations are essential. The region's growth hinges on balancing innovation with job market stability and privacy protection.