Saudi workers are leading the global charge in AI usage, with 68% using generative AI weekly, while the government pushes forward with ambitious AI investment plans

Saudi Arabia is experiencing a rapid technological transformation, as the nation’s workforce increasingly relies on artificial intelligence (AI) to enhance productivity and innovation. A recent study by global management consulting firm Oliver Wyman revealed that 68% of Saudi workers use generative AI tools every week, compared to just 55% of workers worldwide. Furthermore, 93% of Saudi employees consider AI essential to their work, a figure that surpasses the global average of 79%. These statistics highlight Saudi Arabia’s unique position as a frontrunner in the global AI adoption race, particularly in advancing AI in the Saudi workforce.

The government of Saudi Arabia is not just keeping pace with this shift; it is actively leading it. With a massive $40 billion AI investment strategy, Saudi Arabia aims to become a global hub for AI innovation and development. This commitment is reflected in the nation’s partnerships with key global players in the tech space, including Silicon Valley venture capital firms. These alliances are designed to strengthen Saudi Arabia’s technological infrastructure, positioning the country as a leader in the AI-driven future.

This ambitious push into AI also aligns with the broader strategic goals of the Gulf Cooperation Council (GCC), which includes countries like the UAE. The region has embraced AI as a cornerstone of its economic and societal development, seeing it as essential for future growth. Jad Haddad, Global Head of Oliver Wyman Quotient, noted that the Middle East, particularly the GCC, is taking a “confident stance” in its AI investments, as both governments and populations are eager to integrate AI into daily life and work.

While this enthusiasm for AI is largely shared worldwide, there are underlying concerns about its rapid adoption. Globally, 41% of CEOs are worried about moving too slowly in integrating AI into their business operations, according to a study. However, this optimism is tempered by concerns from AI researchers, with 50% believing there is a significant risk that AI could lead to unintended consequences if not properly managed.

As the Global AI Summit approaches in Riyadh, the Saudi government is looking to showcase its AI leadership on the world stage. Nick Studer, President and CEO of Oliver Wyman Group, emphasized that societies are increasingly looking to their governments to guide AI’s development, particularly in areas such as education, workforce training, and ethics. With 39% of respondents across 20 countries advocating for government-driven AI initiatives, the expectation is that AI’s transformative potential will only be fully realized if guided responsibly.

At the same time, AI adoption is creating new challenges in the workplace. Nearly half (47%) of employees who use generative AI say they would continue using the technology even if their employers restricted it. This highlights the growing tension between technological enthusiasm and the need for clear ethical guidelines to ensure responsible use.

Analysis

Political: Saudi Arabia’s aggressive push into AI development has significant political implications. The government’s decision to invest $40 billion in AI signals its intent to position the country as a global leader in technological innovation. This move aligns with the nation’s Vision 2030 plan, which aims to diversify its economy away from oil dependence. Politically, Saudi Arabia is aligning itself with other global powers, such as the United States and its “Chip 4 Alliance” initiative, to ensure a stable semiconductor supply chain critical to AI technologies. By doing so, the country strengthens its international standing while also securing its future economic interests. This leadership in AI is likely to bolster the government’s domestic support, as it promises economic growth and modernization.

Social: The integration of AI into Saudi Arabia’s workforce is reshaping societal dynamics. With 68% of workers already using AI, there is a growing reliance on technology that could change the nature of jobs and the skills required to perform them. This technological shift is fueling debates about the role of AI in daily life and the potential displacement of workers by machines. However, many view AI as a tool for empowerment, enabling workers to be more productive and innovative. Social acceptance of AI is high in Saudi Arabia, largely due to the younger population’s enthusiasm for technology. This contrasts with some Western countries where there is more scepticism about AI’s societal impact. The rapid development of AI in the Saudi workforce underscores the country’s commitment to technological advancement and economic transformation.

Racial: The widespread adoption of AI in Saudi Arabia also raises questions about how the technology will affect racial and ethnic minorities. Historically, marginalized groups are often the first to experience the negative consequences of new technologies, particularly in areas such as surveillance and policing. AI systems, if not developed with inclusivity in mind, could exacerbate existing inequalities. In Saudi Arabia, where the population is diverse and includes large numbers of foreign workers, there is a need to ensure that AI does not become a tool for discrimination or reinforce biases. The country’s leadership will need to address these concerns to ensure that AI benefits all citizens equally.

Gender: From a gender perspective, AI adoption in Saudi Arabia presents both opportunities and challenges. On one hand, AI has the potential to create new job opportunities for women, particularly in sectors such as technology, healthcare, and education. As the government continues to promote female participation in the workforce, AI could play a role in breaking down traditional barriers. On the other hand, there is a risk that AI could perpetuate gender biases, especially if the technology is not designed with gender equity in mind. For example, AI-driven hiring tools may inadvertently favour male candidates if they are based on biased data. Therefore, it is crucial for Saudi Arabia to adopt a gender-sensitive approach to AI development.

Economic: Economically, Saudi Arabia’s AI investment strategy is poised to reshape the nation’s future. The $40 billion investment will not only create new industries and jobs but also enhance existing sectors such as oil and gas, finance, and healthcare. AI has the potential to significantly boost productivity and efficiency across various industries, driving economic growth. However, there are concerns about the displacement of jobs due to automation. While AI will create new roles, it may also render some traditional jobs obsolete, particularly in sectors that rely on manual labour. The challenge for Saudi Arabia will be to ensure that its workforce is prepared for this shift, with adequate training and reskilling programs in place.