TMT sector to gain the most from GenAI boost in Saudi Arabia

02 August 2024 Consultancy-me.com

Generative AI has the potential to increase operating profits of Saudi companies by up to 14% per year, according to analysis by Strategy&. The TMT sector – telecom, media and entertainment, and technology – is touted to become the biggest beneficiary of the Gen AI use cases currently on the market.

In recent years, GenAI has exploded in popularity, with applications like ChatGPT and DALL-E taking the world by storm. But this incredible technology offers more than just consumer-level applications. Businesses around the world are leveraging GenAI tools to boost productivity and create new value.

As the GCC countries continue to diversify their economies by branching into new non-oil industries, tech is high on the agenda. Saudi Arabia is no exception, with Saudi industries eager to adopt innovative tech that can give them a competitive edge.

TMT sector to gain the most from GenAI boost in Saudi Arabia

Source: Strategy&. Bubbles show the potential operating profit upside, all else equal – baseline is 2028 operating profits

Telecom

Despite challenges from intense competition, the KSA telco market is expanding thanks to a young, tech-savvy population and extensive mobile and internet use. Telecom companies in Saudi Arabia are seeking new strategies to differentiate their offerings, and GenAI can help establish competitive advantages.

GenAI helps telecom companies to gain insights, create customized product portfolios, and develop sophisticated customer segmentations. New GenAI-powered tools can also support better customer engagement, optimized network management, and targeted marketing campaigns, all of which can boost overall business performance.

TMT sector to gain the most from GenAI boost in Saudi Arabia

Media and entertainment

The KSA media and entertainment market is growing, driven by high media consumption and advanced digital infrastructure. Saudis spend a significant amount of time online and on social media – and national efforts aim to make KSA a media hub with localized content and diverse entertainment, including gaming.

GenAI tools can help accelerate this transformation by enabling local content creation, personalized experiences, and enhanced capabilities. Media firms can use GenAI for things like post-production, improved search features, personalized recommendations, and targeted advertising.

TMT sector to gain the most from GenAI boost in Saudi Arabia

Technology

The KSA tech sector is thriving due to national digitization strategies, smart city projects, and increasing tech demands. KSA aims to transform its tech sector into an innovation hub by investing in local intellectual property, and companies working in software and infrastructure.

The potential role of GenAI in tech is obvious: It can help to boost growth opportunities and enhance capabilities in many different areas. KSA tech firms can leverage GenAI for new use cases, advanced hardware, improved R&D, and more efficient marketing and operations, tapping into a nearly $800 million market.

TMT sector to gain the most from GenAI boost in Saudi Arabia

AI has already been big for many industries in Saudi Arabia, which are keen to leverage AI tools now before they are outflanked by their competitors. One company using AI is Saudi Aramco, one of the largest oil companies in the world, which is working together with a US strategy consultancy on rolling out the technology.

More on: Strategy&
Middle East
Company profile
Strategy& is a Middle East partner of Consultancy.org
Partnership information »
Partnership information

Consultancy.org works with three partnership levels: Local, Regional and Global.

Strategy& is a Local partner of Consultancy.org in Middle East, Africa, Asia, South Africa, India, Netherlands, Canada and United States.

Upgrade or more information? Get in touch with our team for details.