- Governments are proactively establishing legislation to ensure the responsible deployment of AI.
- Focus must not only be on harnessing its capabilities but also on creating a regulatory framework that balances innovation with responsibility.
Generative artificial intelligence (GenAI) is emerging as a formidable force in transforming economies worldwide, particularly within the Gulf Cooperation Council (GCC) countries.
A recent report by McKinsey highlights that GenAI could potentially contribute up to $35 billion annually, accounting for approximately 2.3 per cent of the GDP, in addition to $150 billion that could be added by other AI technologies.
Such economic implications underscore the significant role that GenAI will play in the region’s future growth.
The adoption of GenAI technologies has seen remarkable success in the GCC, surpassing global averages. According to the survey conducted by McKinsey, 75 per cent of businesses in the GCC reported the integration of GenAI into at least one aspect of their operations, compared to 65 per cent worldwide.
Economic benefits
Furthermore, 57 per cent of these businesses allocate at least 5 per cent of their digital budgets to AI initiatives, which starkly contrasts with the global average of 33 per cent.
The higher adoption rate reveals not only the region’s forward-looking approach to technological advancement but also its readiness to leverage the associated economic benefits.
Karan Soni, an associate partner at McKinsey, delineates the differences between generative AI and artificial general intelligence (AGI), the latter being described as the “next frontier.”
While GenAI is adept at mimicking human-like responses, AGI aims to replicate and exceed human cognitive capabilities. Although AGI remains a nascent concept, the widespread application of GenAI heralds a transformative era for businesses.
Concerns about the impact of AI on employment are prevalent; however, Soni posits that historical trends indicate such technological revolutions ultimately result in job creation. As companies integrate AI, they will necessitate new roles and departments focused on managing and optimising these technologies.
Economic benefits
The Industrial Revolution and the advent of the internet are prime examples of how significant technological shifts have led to a resurgence in economic benefits, albeit alongside the imperative for workforce reskilling.
In the context of AI adoption, regulatory frameworks are also evolving within the GCC. Governments are proactively establishing legislation to ensure the responsible deployment of AI.
Notable advancements in data management laws in both the UAE and Saudi Arabia illustrate the commitment to data sovereignty and the protection of sensitive information, especially concerning critical sectors such as oil and gas.
Initiatives by global tech giants, such as Amazon and Microsoft, in establishing data centres in the region further exemplify strategic efforts to enhance infrastructure and manage data locally.
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