- Positions itself among the top 15 nations worldwide in this domain.
- Kingdom aspires to lead in the AI sector, redefine its global standing, and drive transformative change in critical industries.
The governor of Saudi Arabia’s Public Investment Fund (PIF), Yasir Al Rumayyan, articulated the nation’s aspirations to emerge as a global leader in artificial intelligence (AI) within the next five years.
By integrating AI domestically, Saudi Arabia envisions a future where it can export this technology effectively post-2030, positioning itself among the top 15 nations worldwide in this domain.
The PIF’s strategies, underscored by a potential partnership with a leading venture capital firm to establish an AI fund, signify a proactive approach toward harnessing the economic potential of AI, with possible investments reaching up to $40 billion.
Al-Rumayyan cited a pivotal statistic, predicting that AI could contribute approximately $20 trillion to the global economy by 2030, establishing itself as a critical benchmark of national power.
Strategic goal
He emphasised the transformative potential of artificial general intelligence, highlighting its capacity to revolutionise sectors such as healthcare and energy through enhanced problem-solving capabilities. The vision aligns with Saudi Arabia’s broader strategic goal of becoming a global hub for innovation, rather than merely a regional player.
To this end, Al Rumayyan underscored the importance of integrating governmental policies with fiscal strategies, a concept he termed the “new frontier” of purposeful investment leading to sustainable impact.
His assertion reflects recognition of the intertwined nature of economic growth and societal progress. The acknowledgment of climate change as a rising global concern indicates an adaptive investment strategy that prioritises not only financial returns but also human and environmental welfare.
Reflecting on the evolution of the PIF’s investment strategy, Al Rumayyan noted a significant shift in focus from international investments to bolstering the domestic economy.
Over the past decade, the fund has increasingly concentrated on local initiatives, yielding operational projects that have markedly transformed the perceptions of Saudi Arabia on the global stage.
The Kingdom’s economy is now among the fastest-growing in the G20, achieving over 7 per cent growth in 2022, and it is projected to maintain this momentum in the future.
Furthermore, Al Rumayyan emphasised the Kingdom’s unique advantages as an international economic nexus, including its efficient energy use and abundant resources.
By adjusting its international investment share from 30 per cent to a target range of 18-20 per cent, the PIF aims to balance global engagement with domestic investments, ensuring a sustainable economic model.
Insights from industry leaders
Laurence Fink, CEO of BlackRock, calls the current trading environment as an “investment blossoming”, underscoring a period characterised by significant growth and opportunity within global markets.
Fink’s observations on robust earnings growth and the correlation between profits and price elasticity reflect a broader trend of sustained economic vitality, indicating a conducive atmosphere for investors.
In tandem with Fink’s insights, the transformative potential of artificial intelligence (AI) has emerged as a central theme among industry leaders.
Ruth Porat, president and chief investment officer of Alphabet and Google, emphasised AI as a “transformational, generational technology.” Her call for leaders to reevaluate the possibilities afforded by advanced systems highlights a pivotal moment in technological evolution, where AI is not merely an auxiliary tool but a catalyst capable of reshaping industries and societal frameworks.
Former Google CEO Eric Schmidt further contributed to this dialogue by exploring AI’s implications for defense and warfare. His assertion that traditional definitions of combat must evolve in the face of automation presents a profound shift in military strategy.
Schmidt’s provocative claim—that automated systems should relieve humans of direct combat roles—fosters critical reflection on the ethical and operational dimensions of future warfare.