Participants in the ‘Innovation Catalyst Study’ conducted by Dell Technologies in Saudi Arabia have expressed expectations that generative AI and traditional AI will drive significant transformations across industries. The study reveals a mix of optimism and concern regarding the rapid changes AI is poised to bring, with 91% of institutions reporting over 25% revenue growth for 2023. Conversely, 75% of the institutions recorded low growth between 1% and 5%, or steady to decreasing revenues compared to previous periods.
The research indicates that despite widespread optimism about AI and generative AI, readiness for the pace of change varies considerably among institutions. Ninety-one percent of Saudi organizations believe they are competitively positioned with a strong strategy in place. However, nearly half of the respondents (48%) are uncertain how their industries will look in the next three to five years, and about eight in ten (80%) struggle to keep up with the pace of transformation. Participants cite a lack of suitable talent (27%), data privacy and cybersecurity concerns (28%), and insufficient budgets (31%) as primary challenges in driving innovation.
The generative AI’s capability to revolutionize industrial operations is widely acknowledged. Participants highlighted AI’s value in enhancing IT security (62%), boosting productivity (60%), and improving customer experience (59%). Despite this, significant concerns about security and privacy remain. Eighty-four percent believe their data and intellectual property are too valuable to be managed by third-party generative AI tools.
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Responses suggest that organizations are navigating the practical aspects of generative AI as they transition from ideation to execution. Fifty-eight percent have started implementing generative AI. With increasing adoption, focus is on understanding where risks lie and who is responsible for them. Eighty-seven percent agree that the organization, not the machine, user, or public, should be held accountable for AI failures or undesirable behaviors.
Mohamed Talat, Vice President for Saudi Arabia, Egypt, Libya, Levant, and Turkey at Dell Technologies, states that generative AI represents one of the most significant technological advancements revolutionizing the tech landscape. Talat believes that the adoption of this technology across various sectors in Saudi Arabia, from healthcare to finance, propels innovation, enhances efficiency, and unlocks new possibilities. He adds, ‘Saudi Arabia is positioning itself as a leader in AI through significant investments in research and development, which will bolster economic growth and improve the quality of life for its citizens.’
Cybersecurity remains a major concern, with 91% of respondents experiencing a cyber-attack last year. In response, 94% follow a zero-trust strategy, and 86% have an incident response plan to address cyber-attacks or data breaches. Malware, phishing, and data breaches are among the most common security issues. Additionally, the report highlights that 75% of respondents believe some employees bypass IT security measures to boost efficiency, and 71% view insider threats as a significant concern, emphasizing the need for improved employee training.
The study underscores the importance of modern, scalable infrastructure to support generative AI and manage growing data volumes. Seventy-five percent of IT decision-makers prefer local or hybrid models to handle these challenges. Currently, only 35% can turn data into real-time insights to drive innovation, but 91% recognize data as a key differentiator in their generative AI strategies. Nearly half (42%) expect the majority of their data to come from edge sources within the next five years.
– Skills Gap: Sixty-five percent of respondents report a talent shortage for innovation. Learning agility, AI fluency, and creative thinking are identified as critical skills for the next five years.
– Sustainability: Forty-two percent prioritize environmentally sustainable innovations. Energy efficiency is crucial, with 79% experimenting with IT-as-a-service solutions for better efficiency, and 73% moving AI inferences to the edge to save energy.
– IT as a Strategic Partner: Despite IT’s importance, 81% of business decision-makers sometimes exclude IT leaders from strategic discussions. However, both groups agree that strong interdepartmental relationships are vital for future improvements.
Saudi Arabia’s proactive approach and significant investments in AI research position the kingdom as a potential leader in this transformative field. Dell’s findings illuminate the opportunities and challenges facing businesses in the kingdom, emphasizing the need for strategic planning and collaboration to fully realize the benefits of AI in fostering innovation and economic growth.
