UAE a frontrunner in AI ambition and readiness across the GCC

Organizations in the United Arab Emirates are moving rapidly to integrate AI into their core operations. Many have now transitioned from early experimentation to viewing the technology as a long-term strategic priority, according to a new report from Roland Berger, although challenges remain in scaling AI solutions.

The UAE continues to position itself as a digital leader in the region, pushing national AI initiatives, strong public sector engagement, and stimulating rising private sector investment. Just over half of the surveyed organizations in the UAE have already put an AI strategy in place that aligns with national goals, while an additional 32% are currently developing such a strategy.

Investment in the sector remains robust, with 89% of organizations in the country expecting their budgets for the technology to increase over the next 12 months. This financial commitment is driven by a desire to enhance customer and citizen experiences, which 50% of respondents cited as their primary objective.

Other key goals uncovered by the Roland Berger report include accelerating decision-making processes and fostering innovation through new digital products. To support these ambitions, 57% of local organizations have opted for single-vendor technology stacks to ensure smooth integration with government-backed ecosystems.

The UAE is currently leading among the GCC countries in governance maturity. Around 30% of organizations have established dedicated ethics and compliance boards, and 39% utilize formal review processes for new use cases.

Across the GCC, 85% of organizations expect AI budgets to increase in 2026, with the UAE among the most active markets driving this momentum.

Furthermore, more than two-thirds of entities have implemented centralized or hybrid operating models to manage their initiatives. This structural readiness distinguishes the local market from its regional peers, where many organizations still struggle to build formal oversight mechanisms.

AI deployment in UAE

UAE-based organizations, much like those in the rest of the GCC have been combining strong national ambitions with sustained investment momentum in AI. They are well-funded and fast-moving, with just over half already operating under a defined AI strategy.

AI is expected to bring value to a variety of different business functions, with improving customer experience the most frequently cited, followed by faster decision-making, innovation and the development of new products, and revenue growth. This profile reflects a view of AI as both a service and performance enabler, supporting improvements in quality, speed, and commercial outcomes.

As the GCC countries continue diversifying their economies away from an over-dependence on oil, a variety of growing industries have received a huge amount of investment and government support. Technology and AI are major focus area in this regard, alongside other sectors like tourism, finance, and real estate.

Challenges to scaling AI

The report also covers the significant human and cultural barriers that hinder the ability of organizations to scale their AI efforts. Resistance to change is the most prominent obstacle, affecting 42% of respondents.

Internal silos and a lack of cross-functional collaboration also slow progress for 40% of organizations, while 39% struggle with measuring the actual performance and value of their projects. These behavioral challenges mean that while the technical and legal foundations are strong, many employees have yet to fully adopt new ways of working.

To bridge the gap between strategy and impact, Roland Berger’s researchers recommend that organizations move beyond technical pilots and focus on enterprise-wide organization and change management. This includes setting clear accountability through roadmaps and strengthening data foundations.

By integrating AI outcomes into daily performance metrics and breaking down departmental silos, organizations can unlock the full economic potential of their investments.

The report concludes that the UAE is well-positioned to remain a digital leader if it can successfully address these cultural constraints. “The UAE has built strong momentum in AI adoption, supported by early national leadership and enterprise investment,” said Nizar Hneini, managing director at Roland Berger.

“The next challenge is behavioral: Strengthening adoption, collaboration and accountability to fully unlock the value that existing structures already enable.”