Saudi Arabia matches global AI leaders as 40% of organisations reach advanced maturity: Report

Saudi Arabia is rapidly cementing its position in the global artificial intelligence race, with 40% of organisations in the Kingdom now qualifying as AI Leaders, according to a new report by Boston Consulting Group.

The study, Unlocking Potential: How GCC Organizations Can Convert AI Momentum into Value at Scale, finds Saudi companies are not only keeping pace with global benchmarks but are also scaling AI adoption across multiple industries at notable speed.

Based on a survey of 200 C-suite executives and an assessment of 41 digital and AI capabilities across seven industries, the report shows that 35% of Saudi organisations have reached the critical “Scaling” stage of AI maturity. This marks a decisive shift from experimentation toward enterprise-wide deployment.

Saudi organisations recorded an average AI maturity score of 43, signalling solid progress while also highlighting room for advancement—particularly for the 27% still categorised as “Stagnating.”

“Saudi Arabia's progress in AI adoption reflects the Kingdom's commitment to technological transformation at unprecedented scale,” said Rami Mourtada, Partner & Director, Digital Transformation at Boston Consulting Group.

He noted that AI leaders in the Kingdom are well positioned to capitalise on significant national investments in AI infrastructure, but stressed that sustained value creation will require systematic, locally grounded strategies with global ambition.

Across the wider Gulf Cooperation Council (GCC), AI adoption is also accelerating. The report finds 39% of GCC organisations now qualify as AI Leaders, just one percentage point behind the global average of 40%.

The region’s public sector stands out, achieving the highest AI maturity levels globally among surveyed markets. While the technology, media, and telecommunications (TMT) sector continues to lead, rapid progress is also visible in financial services, healthcare, industrial goods, and travel and infrastructure.

The business case for AI maturity is becoming increasingly compelling. According to the report, AI Leaders in the GCC deliver:

• Up to 1.7x higher total shareholder returns

• Around 1.5x higher EBIT margins than AI laggards

This performance edge is closely tied to investment intensity. AI Leaders are allocating 6.2% of IT budgets to AI in 2025, compared with 4.2% among laggards. By 2028, the value generated by leaders is expected to be three to five times higher, widening the competitive gap further.

The study identifies five strategic moves that distinguish top performers:

• Multi-year AI ambitions with significantly higher leadership engagement

• Fundamental business process redesign rather than plug-and-play AI deployment

• AI-first operating models supported by strong governance

• Aggressive talent acquisition and upskilling (1.8x faster than laggards)

• Fit-for-purpose technology architectures that cut adoption challenges by 15%

AI maturity in the GCC has risen sharply, up eight points between 2024 and 2025, and now trails overall digital maturity by just two points.

Looking ahead, 38% of GCC organisations are already experimenting with agentic AI, not far behind the global average of 46%. The share of value generated from these initiatives, currently 17%, is projected to rise to 29% by 2028.

Persistent barriers remain

Despite strong momentum, the report flags structural challenges. AI laggards are:

• 18% more likely to face people and process barriers

• 17% more likely to struggle with algorithm implementation and data access

• 10% more likely to encounter technology constraints, including security and responsible AI requirements

Limited availability of local GPUs is also emerging as a pressure point for scaling AI workloads. “Saudi organizations have made meaningful progress in advancing AI, yet the ability to scale impact continues to be influenced by local challenges and constraints,” said Semyon Schetinin, Managing Director & Partner at Boston Consulting Group.

He emphasised that the next phase of value creation will depend on building robust AI talent pipelines, strengthening private-sector hiring strategies, and deepening public-private collaboration to improve access to advanced technology.

The road ahead

The report concludes that sustaining AI leadership in Saudi Arabia and the broader GCC will hinge on continued executive commitment, responsible AI governance, and tighter alignment between AI initiatives and business strategy.

With strong public and private sector momentum already in place, the Kingdom appears well positioned to convert AI adoption into long-term economic value, provided organisations can successfully scale from ambition to execution.