Artificial intelligence adoption is surging in the UAE, with businesses increasingly viewing AI and generative AI (GenAI) as central to their growth strategies. According to Dell Technologies’ latest State of Innovation and AI Survey, which included 50 UAE business and IT leaders out of 2,850 global respondents, a remarkable 92% of UAE enterprises now consider AI a key part of their business strategy, while 88% report measurable productivity gains and financial returns from early AI initiatives.
This surge reflects a strategic shift, as companies move from pilot projects to integrating AI into their core operations. However, challenges remain, particularly around workforce skills, infrastructure readiness, and data security.
Driving AI Adoption Across the UAE
The report highlights several trends shaping the UAE’s AI landscape:
1. Data Readiness Takes Priority
A strong foundation for AI is critical. 64% of UAE organizations are focusing on data readiness as a top IT initiative, ensuring their infrastructure can fully support AI capabilities.
2. On-Premises AI Deployment is Growing
Security and compliance are driving companies to run AI locally on AI PCs, with 74% planning to adopt on-premises AI solutions over the next year. This approach addresses data sovereignty concerns while enabling greater control over sensitive information.
3. AI as a Sustainability Driver
AI is increasingly recognized as a tool for sustainability. 92% of UAE companies see AI as essential for optimizing resource usage, improving energy efficiency, and advancing circular IT practices, from smarter data center management to eco-friendly hardware strategies.
Overcoming AI Implementation Challenges
Despite these positive trends, integrating AI across the enterprise remains a hurdle:
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Skills Gap: 100% of UAE respondents reported lacking sufficient AI expertise, particularly in safely implementing GenAI, with 66% citing a lack of knowledge in this area.
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Security Concerns: 72% of organizations fear exposing sensitive data to third-party AI tools, and 80% struggle to balance innovation with cybersecurity needs.
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Infrastructure Limitations: Many companies’ current IT environments are not equipped for AI workloads, with challenges in processing power, AI-optimized hardware, and data protection.
These barriers underscore the need for holistic AI strategies that combine workforce development, secure deployment, and scalable infrastructure.
AI and Sustainability: A Powerful Combination
The report also highlights how AI is helping UAE organizations align innovation with environmental goals. Companies are leveraging AI to enhance energy efficiency, optimize workloads, and shift inferencing tasks to edge computing environments. Collaboration is key, with 82% emphasizing the role of external partnerships to implement sustainable, circular IT solutions.
Dell Technologies is at the forefront of this transformation, providing AI infrastructure that balances high performance with energy efficiency, helping organizations reduce environmental impact while scaling AI adoption.
Expert Insight
Walid Yehia, Managing Director, South Gulf at Dell Technologies, commented:
“The State of Innovation and AI Survey reflects a powerful shift in how UAE businesses are embracing AI to drive innovation and growth. Organizations are moving beyond pilot projects and embedding AI at the core of their strategies. Achieving the full potential of AI will require addressing workforce skills, infrastructure readiness, and secure, collaborative implementation.”
