With strong foundations in place, the Gulf now faces its AI execution challenge
Organizations across the Gulf Cooperation Council have laid strong strategic and financial foundations for their use of AI, and adoption has moved well beyond experimentation. But now comes the next – and real – challenge: execution. That is according to a new report from Roland Berger.
Based on insights from senior decision-makers across both public and private entities in the region, the report examines how organizations are progressing in the field of artificial intelligence (AI), including generative AI (Gen AI) and machine learning (ML).
The authors found that nearly 4 out of 5 organizations in the region now embed AI in their strategic plans. Half already have a documented strategy aligned with national priorities, and a further 29% have a strategy under development.
Expectations of AI are high. In the area of efficiency, organizations want AI to speed up decision-making and improve its quality, not just reduce costs and boost productivity. In terms of experience, they expect AI to enhance customer and citizen interactions in line with national goals for best-in-class government service delivery and world-leading customer engagement.
In value creation, organizations look to AI not only for revenue growth but also for innovation through new digital services, business models and income streams. And finally, in risk and compliance, AI is expected to improve monitoring, detect anomalies and reduce exposure.
Based on these views, Roland Berger’s report notes a clear shift: while AI was previously viewed mainly as a driver of efficiency, its value is now increasingly recognised and tapped to also shape frontline services and innovation.
Investments in AI
Investments in AI will continue to ramp up in the year ahead, the report finds. 85% percent of organizations expect their AI budgets to rise in the coming year, and close to 40% foresee a significant increase.
“AI has crossed the boundary between aspiration and commitment. It is no longer treated as discretionary spending but as part of the core investment base required to deliver transformation,” noted Nizar Hneini, Managing Director and Head of Digital and Services at Roland Berger.
Within the GCC, Saudi Arabia and the UAE show the strongest momentum, with 89% of organizations in each country planning to raise spending. Qatar follows closely at 86%, while Bahrain has a far smaller share of organizations expecting increases. Oman and Kuwait show similarly cautious profiles, although a majority of organizations in both countries still plan to raise their AI budgets in the next 12 months.
Strong foundations but behavioural barriers remain
Despite the foundations laid and the strong investment appetite, the report finds that many organizations struggle to fully advance their AI uptake. While 80% of organizations now have an AI strategy, fewer than one in three have built an AI operating model or a clear governance process to support it. Only 28% have established a dedicated ethics or compliance board.
“The result is a wide gap between intent and execution,” said Hneini.
Across the GCC, the biggest blockers of operational readiness are foundational rather than strategic – data quality, technological readiness and funding beyond the pilot phase. Resistance to change (42%), cross-functional silos (40%) and weak performance management (39%) continue to slow adoption and limit scaling, even where strategy and investment are firmly in place.
In terms of operational readiness, Roland Berger found that all GCC countries still have notable steps to take. Adding to that complexity, the researchers highlight that barriers vary by country. In Saudi Arabia, for example, common constraints include technology readiness and data quality. In the UAE, resistance to change is more pronounced, while in Qatar, talent gaps rank higher on the agenda.
Commenting on the strategy-to-execution gap, Hneini said: “Despite strong national ambition and rising AI investment across the GCC, most organizations still struggle to move beyond pilots and achieve adoption at scale. The gap is not one of intent, but of execution. Fragmented operating models, uneven data foundations, unclear ownership and limited integration into day-to-day workflows continue to slow progress.”
“To translate ambition into enterprise impact, organizations need a focused set of immediate next steps that address the real barriers to scale. The next challenge is behavioural: strengthening adoption, collaboration and accountability to fully unlock the value that existing structures already enable.”
