In the United Arab Emirates and Saudi Arabia, business leaders exhibit a strong sense of optimism regarding their companies’ futures and the trajectory of the regional economy. Nonetheless, they express concerns about the impact of artificial intelligence (AI) and automation on their operations, as revealed in a recent study.
A survey conducted by the international consultancy AlixPartners, which canvassed views from 3,000 global CEOs and executives, including those from the UAE and Saudi Arabia, found that 80% of these leaders are confident about their company’s outlook, while 85% hold a positive view of the broader economic landscape.
The report, known as the AlixPartners’ Disruption Index, aims to shed light on the prevailing anxieties among business executives. It positions executives from the region as the second-most disrupted group, after their counterparts in China. Approximately 68% of the respondents from the Gulf indicated that they have experienced a high level of disruption in the past year.
Largest disruptive forces
The prevailing sentiment among the Gulf’s CEOs is that AI and automation represent the most significant disruptive forces, with 87% endorsing this view—a stark contrast to the 46% global consensus.
A notable number of CEOs feel that rapid technological advancements are outpacing the skill sets of their workforce, and many employees appear to be resistant to these changes.
Concerns are also mounting over the ability of companies to adapt swiftly enough to the pace of change, with 67% of regional CEOs expressing this apprehension. Despite this, 60% have indicated that they are in the midst of altering their business model or plan to do so within the ensuing year.
Staff-related challenges loom large, as 85% of the CEOs surveyed believe that their employees’ skills are becoming obsolete more quickly due to the pace of change. This figure far exceeds the global average of 58%.
Moreover, a substantial 80% of Gulf business leaders have observed a reluctance to change among their employees, which overshadows the 55% global average.
Actions taken
In response to these hurdles, corporate leaders in the UAE and Saudi Arabia are stepping up their investment in technology, surpassing their expenditures from the previous year.
A majority of 64% are earmarking significant funds for digital transformation as the primary driver of business growth over the next three to five years.
Additionally, process automation is a top priority for half of the CEOs, which is double the rate of their global peers, indicating a keen focus on utilizing technology to streamline operations.
“The emergence of generative AI is a source of both excitement and apprehension for many leaders globally. However, companies here in the region are demonstrating a proactive approach by prioritizing its adoption,” commented Gabriel Chahine, Middle East Leader at AlixPartners.