News: Middle East leads rapid AI adoption with confidence
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Middle East leads rapid AI adoption with confidence

News • 15th Nov 2024 • 3 Min Read

Middle East leads rapid AI adoption with confidence

Strategic HRSkilling#DigitalTransformation#SkillUp#DigitallyEmpowered#Artificial Intelligence

Author: Gabriela Paz Y Miño Gabriela Paz Y Miño
422 Reads
The Middle East is rapidly adopting AI in the workplace, driven by high confidence and a proactive approach to digital transformation, as highlighted in a recent BCG report.

Middle East is as a leader in embracing AI and generative AI (GenAI) in the workplace. A recent study by Boston Consulting Group’s (BCG) technology arm, BCG X, titled "AI at Work Friend and Foe," highlights the region’s rapid adoption, high confidence, and strong belief in AI’s potential to transform the workplace. 

According to the study, confidence in GenAI across the Middle East ranks among the highest in the Global South, with 51 per cent of survey respondents expressing a positive sentiment toward AI in their professional lives.

The BCG study, which included Middle Eastern participants ranging from top executives to frontline employees, captures a major shift in AI perception and usage across the region. The report indicates that Middle Eastern companies are making significant strides in digital transformation and setting an example globally. 

One of the findings from the report is the level of GenAI usage among frontline employees in the Middle East. 80 per cent of these workers report using GenAI regularly in their work, marking one of the highest adoption rates globally. Notably, 87 per cent of these employees agree that AI has saved them time, highlighting the practical impact of the technology in enhancing efficiency and productivity.

This shift in perception around AI is reflected in a significant reduction in job-related fears. In 2022, 60 per cent of Middle Eastern employees expressed concerns that AI and GenAI could replace their jobs. By 2023, this figure dropped to 36 per cent, suggesting a deeper understanding of AI’s supportive role in augmenting human effort rather than replacing it.

Further, optimism about the future role of AI in the workplace remains strong: 79 per cent of respondents believe that AI will transform their jobs over the next decade. This reflects a growing sentiment that AI will support workers by making tasks more efficient and enabling them to focus on higher-value responsibilities.

While GenAI adoption is growing, so too is the region’s focus on upskilling. The BCG study reveals that 46 per cent of frontline employees in the Middle East have received training on how GenAI will transform their roles, with 41 per cent of leaders reporting similar training.

Dr. Lars Littig, Managing Director and Partner at BCG Middle East, underscored the dual impact of GenAI, which offers both significant opportunities and challenges. “The rapid adoption of GenAI is creating a dual effect. While it offers immense opportunities to streamline work and boost productivity, it also introduces challenges, particularly in change management. Leaders must invest in technology and the human element—through education, engagement, and adaptability—to make this transformation sustainable.”

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Robert Xu, Managing Director and Partner at BCG X added, "The Middle East is taking bold strides in adopting GenAI, reflecting a proactive and future-forward approach to digital transformation. This enthusiasm mirrors the region’s strategic goals to advance technologically and build a knowledge-based economy. Middle Eastern organisations are deploying GenAI and embedding it into their operations, setting a benchmark for other regions."

To help companies navigate the complexities of AI adoption, BCG experts have outlined five recommendations for Middle Eastern organisations embarking on GenAI-driven transformations:

  1. Establish a Transformation-First Mindset: Approaching GenAI integration with a strong focus on transformation prepares organisations to fully harness AI’s potential.
  2. Manage Transformations Holistically: From employee training to infrastructure updates, every aspect of an organisation should be considered in an integrated way.
  3. Build Training Capabilities at Scale: AI literacy is essential. Developing comprehensive training programs enables employees at all levels to become familiar and comfortable with GenAI tools.
  4. Emphasise Value Creation and Employee Satisfaction: Demonstrating how AI adds value to employees’ daily work boosts morale and supports long-term engagement.
  5. Anticipate the Evolution of Roles, Skills, and Governance: AI will inevitably alter job roles and required skills. Being proactive about evolving governance structures can help organisations manage this shift smoothly.
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