Kyndryl Readiness Report: AI Delivers Early Returns in Saudi Arabia, Pushing Enterprises to a Tipping Point
Businesses report AI momentum — but foundational gaps in tech and talent now define the next phase of progress
Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise services, today released its second annual Readiness Report, drawing on responses from 3,700 senior leaders across 21 countries.
The data reveals a moment of both momentum and reflection — as businesses in Saudi Arabia report growing returns from AI investments while facing mounting pressure to modernize infrastructure, scale innovation efforts, reskill workforces, and manage risk in an increasingly fragmented regulatory landscape.
“The Readiness Report confirms what we see in Saudi Arabia every day. Leaders are achieving returns from AI, yet many are working to modernize legacy systems, build new skills, and align with an evolving policy environment,” said Pieter Bil, Senior Vice President and Managing Director of Kyndryl in the Middle East and Africa. “Vision 2030 raises the bar, asking all of us to build secure, sovereign ready digital infrastructure and world class human capability.
The priority now is to move from early stage adoption to scaled innovation, strengthen cyber resilience, and develop Saudi talent so AI becomes a durable growth engine for the national economy.”
Last year’s report revealed a critical gap between perception and preparedness: while the majority of business leaders in the Middle East, including Saudi Arabia, believed their IT infrastructure was best-in-class, fewer felt it was ready for future disruption. While there has been momentum – that tension remains. This year:
- ROI pressure rising, but AI stuck in experimentation phase: 63% of Saudi organizations report feeling more pressure to prove ROI on AI investments compared to last year. However, 57% say their innovation often stalls after the proof-of-concept, and 53% agree foundational issues in their technology stack.
- Confidence continues to outweigh capability: While Saudi organizations are eager to innovate, foundational challenges persist. 94% say they struggle to keep up with the pace of technological advancements, 30% cite the complexity of their technology environments as a barrier to scaling tech investments, and 26% struggle to align business and technology teams.
- AI driving workforce transformation, but skills gaps remain: 91% in Saudi Arabia say AI will “completely” transform jobs at their organizations within 12 months. Yet, 31% are concerned about how to upskill and reskill employees whose jobs are replaced by AI, 35% worry about the lack of core cognitive skills and 35% cite gaps in technical skills needed to harness AI’s potential.
- Cyber resilience top of mind: With 76% of Saudi organizations having experienced a cyber-related outage in the past year, cybersecurity has become a top priority. Yet, only 39% are implementing robust cybersecurity measures, and 33% are upgrading their IT infrastructure to mitigate business risks and strengthen resilience.
- Policy and compliance shaping infrastructure decisions: As Saudi organizations scale their technology investments, 29% cite regulatory or compliance concerns as a barrier, underscoring the influence of policy on infrastructure strategy and innovation readiness.
Cloud is under pressure as geopolitical and regulatory disruption drive change
Many Saudi organizations are revisiting their cloud infrastructure, prompted by new regulations and growing concerns about data sovereignty.
67% of Saudi leaders express concerns about the geopolitical risks associated with storing and managing data in global cloud environments, and 70% have adjusted their cloud strategies in response – by investing in data repatriation (50%), reassessing vendors (28%), and shifting toward private cloud models (31%).
To read the report, visit Kyndryl’s Readiness Report.
