The artificial intelligence market is on an explosive growth trajectory – GlobalData forecasts it will reach $909 billion by 2030, up from about $100 billion in 2022, driven mainly by the rise of generative AI. This category of AI, exemplified by popular tools like ChatGPT, DeepSeek, Google Gemini, etc. has sparked widespread innovation by enabling businesses to generate original content and automate complex tasks.
Companies in the MENA region are rapidly adopting generative AI, aiming to harness its potential for significant productivity gains, deeper personalization, and innovative customer experiences, while also confronting the critical need for responsible and ethical deployment.
The Explosion of Generative AI
Generative AI has transitioned rapidly from niche technology to mainstream business adoption, becoming the fastest-growing AI technology globally. According to GlobalData, AI market revenues will expand at a compound annual growth rate of 35%, reaching $909 billion by 2030, driven significantly by generative AI applications.
Patent filings in generative AI surged by 83% annually over the past five years, illustrating intense innovation and investment. McKinsey analysts estimate that applying generative AI across industries could generate $2.6–4.4 trillion in global annual economic value by augmenting and automating a wide range of tasks. This transformative impact, exemplified by platforms such as ChatGPT, DeepSeek, Google Gemini, etc. underscores AI’s potential to reshape economies and industries in unprecedented ways.
The Potential of Generative AI for Businesses
Our research shows that generative AI adoption in MENA is already reshaping organizational strategies and operations, with over 80% of regional executives reporting notable impacts on their business models and processes, and half already running pilot projects. As reported by PwC, the Middle East could capture $320 billion of global AI dividends by 2030, reflecting substantial regional growth potential. For instance, ADNOC in the UAE reported generating $500 million in added value in 2023 alone through AI-driven operational improvements.
Such examples illustrate AI’s capacity to significantly boost efficiency, accelerate innovation, and create new revenue streams across the region. Last year we at Artefact MENA helped our clients implement 60+ AI use cases, with an estimated value add of approximately $100 mn in added value across sectors.
Addressing the Challenges of AI Growth
Nearly 80% of organizations highlight concerns about risks such as algorithmic bias, data privacy, and misinformation, issues particularly acute in social-media-intensive regions like MENA. There are critical regulatory concerns around generative AI, including deepfakes and exacerbated biases, necessitating robust governance frameworks and responsible deployment practices.
Another challenge is the impact of AI in transforming the workforce by automating routine roles in customer support, data processing, and middle management. On the other hand AI is creating new jobs like AI model trainers and data ethicists.
While the net impact for MENA is expected to be positive, MENA faces a critical shortage of AI talent, with high demand for data science and machine learning expertise. Governments are responding, e.g., the UAE launched MBZUAI, the world’s first AI-focused university. At the same time businesses must invest in upskilling employees in AI-related skills.
Finally, the AI regulation in MENA is evolving, requiring businesses to navigate uncertainty. Governments are promoting AI growth while addressing risks for e.g., the UAE’s National AI Strategy 2031 and Saudi Arabia’s Vision 2030 embed AI into national agendas. However, comprehensive AI laws are lacking, leaving companies to operate under guidelines rather than enforceable regulations. Businesses must self-regulate, adopt global best practices, and engage policymakers to shape balanced AI policies.
Strategies for Thriving in the AI Market
To lead in the AI revolution, businesses must embed AI within their core strategy rather than approaching it merely as an IT experiment. Leadership teams should ensure AI initiatives align closely with organizational goals, promoting a data-driven culture that emphasizes innovation and tangible business impact.
Successful AI adoption often starts with targeted, high-impact projects that demonstrate quick results. Companies that begin with manageable use cases can rapidly prove AI’s value, build momentum, and secure stakeholder support, setting the foundation to scale AI initiatives efficiently.
Equally important is the strengthening of foundational data and technology capabilities. AI depends heavily on high-quality data and resilient infrastructure. Therefore, organizations must modernize their data governance, enhance security protocols, and adopt flexible cloud solutions to facilitate scalable, AI-ready environments.
Finally, companies should prioritize investing in talent and strategic partnerships. By upskilling current employees and collaborating closely with external AI specialists, technology providers, and academic institutions, businesses can address skill gaps, accelerate adoption, and sustain continuous innovation in AI.
