AMEINAH ALZEYOUDI (ABU DHABI)
The Middle East is steadily emerging as a global leader in AI, with the UAE taking centre stage as nearly half of its businesses deploy large or small language models to enhance customer service and product development, according to a new report by Astra Tech.
The survey revealed that 44.74% of companies in the UAE are already using these models, highlighting a push toward digital innovation and improved operational efficiency.
Across the region, adoption varies: 27% of companies are still studying potential use cases, 36% have begun early implementation, 13% report full integration, another 13% have made significant progress using advanced AI solutions, and 9% are focused on translating AI capabilities into financial returns.
Despite this momentum, the report shows that only 43.14% of AI solutions can handle complex inquiries and tasks, whereas 39.22% cannot, underscoring the continued need for human oversight in many situations.
The UAE leads the survey sample with 53.25% of participants, reflecting the country's commitment to harnessing emerging technologies.
"The Middle East is experiencing a transformative shift with the adoption of AI, positioning itself as a leader in technological innovation," said Hassan Al Noon, Senior Vice President of Technology at Astra Tech.
He noted that AI's integration across industries like healthcare, finance, telecommunications, and education not only drives economic diversification but also aligns with the region's vision for a sustainable digital future.
The report pointed to Yallacompare, an insurance comparison platform that uses large language models for document scanning and information extraction, significantly reducing human error.
The extracted data is contextualised by LLMs, enabling finance advisors to guide customers to the best insurance products. This has cut the company's processing costs by about 80% while allowing employees to focus on other tasks.
Amid these success stories, concerns persist about privacy and security, with 35.29% of respondents citing them as top ethical considerations. Calls for transparency are also growing, as 70.59% believe companies fail to fully disclose their use of AI, and user comfort with AI handling personal information remains mixed - 29.41% express high comfort, while 23.53% remain uneasy.
Survey participants also emphasised the need for education and skill development, cultural sensitivity, compliance with local regulations, and clear ethical guidelines to ensure that AI deployments align with local norms and protect user data.
Most interactions with AI currently revolve around information retrieval, at 46.67%, followed by customer service and support at 33.33%. These figures suggest that, while enterprises recognise AI's capability to streamline workflows and enhance customer experiences, they also acknowledge that comprehensive ethical frameworks are necessary to maintain public trust.