BATOOL GHAITH (ABU DHABI)
The adoption of artificial intelligence is translating into productivity gains for businesses, with UAE firms reporting some of the highest returns in the region, a new global study revealed.
Seventy-seven percent of senior executives in the UAE report measurable productivity gains from AI adoption, well above the average of 66% in Europe, Middle East and Africa (EMEA), according to IBM's recently released 'The Race for ROI' study.
Nearly half of UAE executives (44%) expect to see returns on their AI investments within a year, while 93% anticipate measurable ROI from AI agents within two years - the highest proportion in the region. The study draws on insights from 3,500 executives across 10 countries, including 500 respondents from the UAE.
Among the expected AI benefits in the UAE are time savings (49%), improved employee satisfaction (47%), and cost reduction (40%).
Technology plays a huge role in how things can be different going forward, said Lula Mohanty, Managing Partner, IBM Consulting Middle East and Africa.
"IBM is working across industries with various clients to bring forward our best technologies for services and business here in the Emirates," Mohanty told Aletihad.
AI's business impact is primarily visible in software development (34%), marketing (33%), account management (30%), customer service (28%) and procurement (29%), the study said.
The UAE also leads in AI readiness and responsible adoption as 77% of organisations prioritise AI transparency; 78% focus on interoperability; and 80% emphasise flexibility and scalability to ensure long-term success, the report added.
Economic expert Wajdi Makhamreh agreed that AI is emerging as a high-ROI investment across the UAE. The over 40% ROI expectations and strong workforce impact suggest AI is becoming a growth strategy, he said.
"UAE business leaders are prioritising automation, upskilling, and real-time decision-making - signs of a broader digital shift which is transforming and will continue to transform how companies scale, compete, and innovate," he said.
As AI adoption accelerates, the UAE is advancing toward an AI-powered society where creativity, agility, and collaboration drive competitiveness, tech expert Dr Zaid Rababaah told Aletihad.
"The UAE's success comes from leadership commitment, rapid ROI focus, and a national mindset that sees AI as a strategy, not a trend," he said.
He added that the UAE's advantage also stems from its inclusive workforce upskilling programmes and its flexible, interoperable approach to AI adoption - which avoids vendor lock-in and empowers employees across all levels.
"To sustain this lead, the UAE must keep investing in clean, connected data, ethical and transparent governance, and AI innovation that creates new value, not just efficiency. The next challenge is turning productivity gains into sustainable innovation ecosystems," Dr Rababaah said.