According to a recent report by McKinsey, more than 60% of businesses operating in the GCC (Gulf Cooperation Council) region have embraced artificial intelligence (AI) or integrated it into their operations. While AI adoption in the Gulf is still relatively low, it surpasses other regions such as North America, Europe, and Asia-Pacific.
However, the report highlights that only 23% of organizations have implemented AI across multiple business functions, which is crucial for unlocking its full potential. Vinay Chandran, Partner at McKinsey & Company, emphasized the importance of adopting AI more comprehensively to derive maximum value.
Retail companies in the Gulf have shown the highest adoption rates, with 75% using AI in at least one business function. Retailers leverage their vast amounts of data to gain insights into consumer behavior and inform pricing decisions. In contrast, the construction sector lags behind due to challenges in data collection and integration.
The energy and materials industry in the GCC has emerged as a leader in early AI investment, employing the technology to optimize maintenance efficiency, production, and distribution, driven by global competitiveness.
