Agentic AI: Leading Saudi Arabia’s next wave of enterprise transformation
As the global technology landscape undergoes a seismic shift with the rise of agentic AI, Saudi Arabia stands at a pivotal crossroads. The Kingdom is uniquely positioned to leverage these advancements to accelerate its ambitious Vision 2030 goals.
Saudi Arabia is investing heavily in artificial intelligence and automation to boost productivity across sectors. In March 2024, the government announced the creation of a $40 billion fund dedicated to AI investments, aiming to optimize operations, reduce waste, and enhance decision-making.
According to Accenture research, generative AI has the potential to elevate KSA’s gross domestic product (GDP) by approximately $42.3 billion. At an aggregate level, it will augment and automate nearly a third of all jobs, with highly skilled jobs witnessing a radical transformation in terms of productivity, agility and collaboration.
From AI to AI to agentic systems
And the country is only getting started. The transition from traditional AI to agentic systems represents more than an incremental upgrade – it’s a fundamental reimagining of how technology can serve business objectives. Agentic AI is characterized by its ability to autonomously perform complex tasks with minimal human supervision, creating new possibilities for Saudi enterprises across sectors.
Currently one in three companies is pivoting towards innovating with agentic AI and those who embrace this shift swiftly stand to secure a competitive edge. In the Kingdom’s rapidly diversifying economy, the integration of these systems isn’t merely a luxury but a competitive necessity.
Example: Saudi Aramco
For instance, oil giant Saudi Aramco has already begun deploying agentic AI solutions to optimize extraction processes, predict equipment failures, and manage complex supply chains with unprecedented efficiency.
Early implementations have demonstrated cost reductions of up to 30% in maintenance operations while simultaneously improving safety metrics.
Common use cases
Agentic systems and composable digital cores are radically transforming the way we interact with technology and what users expect from it – introducing new considerations for the enterprise. For instance, a majority (88%) of executives in Saudi Arabia worry LLMs and chatbots could give every brand a similar voice, but 94% agree brands can solve this challenge by proactively building personified AI experiences and injecting distinct brand elements, such as culture, values and voice, into those experiences.
Enterprises in Saudia Arabia are already taking steps to fine tune AI in this way, like the Saudi National Bank which is utilizing AI augmented functionality to develop innovative financial products tailored to Saudi Arabia’s unique market dynamics. These systems analyze vast datasets of consumer behavior, religious considerations for Shariah-compliant finance, and global market trends to identify underserved niches and design appropriate solutions.
The Saudi healthcare sector, too, is witnessing transformation through AI augmentation. Physicians at King Faisal Specialist Hospital are now working alongside AI systems that not only manage administrative burdens but actively contribute to diagnostic processes, treatment planning, and medical research – all while respecting the cultural sensitivities particular to healthcare delivery in the Kingdom.
Interestingly, 86% of executives in Saudi Arabia believe that robots collaborating with people and continuously learning from those interactions will increase trust and teamwork between people and robots. For example, this sentiment may pave the way for robotic surgical assistants for simple procedures.
A leapfrog opportunity
For Saudi enterprises, the strategic implementation of agentic AI represents a potential leapfrog opportunity. Rather than incrementally improving upon legacy systems, forward-thinking organizations are rebuilding their operating models around AI capabilities from the ground up.
The path to AI-powered transformation is not without obstacles. As the Accenture report highlights, organizations worldwide are grappling with questions of ethical AI deployment, and Saudi enterprises face these same challenges with additional considerations around cultural compatibility.
The Kingdom has responded proactively, with the Saudi Data and AI Authority (SDAIA) developing comprehensive frameworks for responsible AI usage that balance innovation with ethical considerations. These guidelines are helping enterprises navigate the complex terrain of AI implementation while maintaining alignment with Saudi Arabia’s unique cultural context.
Equally critical is the development of human capital to work alongside these new systems. The Kingdom’s substantial investments in technology education through initiatives like the Saudi Digital Academy are creating a new generation of professionals equipped to collaborate with AI systems – not merely operate them.
A key priority (81%) for leaders in Saudi Arabia, almost on par with the global average (80%) is ensuring a positive relationship trajectory between people and AI – so it is not derailed by fears of automation – starting with communicating the strategy and bringing employees into the process.
Creating a virtuous learning loop where AI and humans can collaborate to reimagine business capabilities will go a long way in scripting the next chapter in Saudi Arabia’s story of transformation.
