Two-thirds of UAE tech leaders attribute increased business profitability to AI

An impressive 89 per cent of technology leaders in the UAE are confident that their current technology can effectively fuel business growth and enhance organisational development, a recent report showed.

This level of confidence surpasses that of their global counterparts by a significant 16 per cent, the KPMG UAE Tech report for 2023, titled Tech Trailblazers: Navigating the Next Digital Frontier, revealed.

The report emphasises the UAE’s dedication to using technology to reach ambitious business objectives, tackle challenges, and promote environmental, social, and governance (ESG) priorities. Notably, 87 per cent of tech leaders in the UAE are confident in their current technology’s ability to advance the organisation’s ESG agenda, surpassing the global average by 15 per cent. Additionally, a substantial 86 per cent of UAE tech leaders believe that their organization’s technology is simultaneously enhancing employee satisfaction, well-being, efficiency, and cost reduction.

Mohamad Majid, partner, digital and innovation at KPMG Lower Gulf said: “The UAE’s digital transformation leaders are committed to their innovation priorities and realising value at pace, despite the headwinds of global economic uncertainty. This year’s UAE Tech Report provides insights into how the nation’s tech leaders are forging a path of innovation and technology-driven growth, setting a global example for strategic AI adoption, prioritizing ESG and cybersecurity, and advancing business technology.”

The UAE’s strategic focus on AI and machine learning (ML) and commitment to transformative technologies is shared by CTOs. Based on the KPMG study, a 53 per cent of tech leaders in the UAE recognise AI as a key driver for fulfilling their short-term objectives. The study also highlights other technology preferences of respondents for achieving these short-term goals, with edge computing (43 per cent) and quantum computing (41 per cent) emerging as highly valuable options. Interestingly, the Metaverse, although at 29 per cent, still showcases potential, suggesting that it’s an evolving concept rather than an immediate competitor to innovative technologies.

Remarkably, 43 per cent of tech leaders attribute their belief in AI’s potential to its demonstrated return on investment (ROI). In fact, two-thirds of CTOs attribute significant increases in profitability to AI initiatives.

84 per cent of UAE tech leaders believe that the benefits of XaaS technologies are worth the risks. This puts them 21 per cent ahead of tech leaders around the world. XaaS, or “Everything as a Service,” means getting various resources and services over the internet through subscriptions. It includes things like Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), and more. XaaS helps businesses adapt quickly to changing needs, save money, and stay up to date with regular updates and improvements.

The report has also found that in the UAE, information security is a key driver of digital transformation due to regulatory requirements and rising cybersecurity concerns. More than half (56 per cent) of tech leaders emphasise the importance of meeting customer demands for enhanced data privacy and cybersecurity in shaping their strategies.

However, 47 per cent of tech leaders in the UAE identify underdeveloped data management strategies as a hurdle to transformation (compared to the global average of 34 per cent). Furthermore, 43 per cent of respondents highlight the limitations of legacy technology, highlighting the necessity of innovative strategies that directly address these challenges.

Tomorrow’s tech leaders envision digital evolution holistically, cultivating innovation across all industries. As the UAE sets out to achieve its centennial 2071 ambitions, technology breakthroughs can reshape the future of education, healthcare, tourism, manufacturing, and ESG, the report said.

• Business