Artificial Intelligence (AI) is dominating business agendas in 2025, with GCC companies leading global investment drives, according to a Boston Consulting Group (BCG) survey.
One in four GCC firms plans to inject over $25 million into AI initiatives, mirroring a global trend where one in three companies are making similar commitments.
The BCG AI Radar survey, encompassing 1,803 C-suite executives across 19 markets, reveals GCC businesses are prioritising AI for core function redesign and new AI-powered business models. Notably, 81 per cent of GCC companies intend to boost tech investments, and 72pc rank AI/GenAI as a top-three strategic priority.
“We’re seeing a fundamental shift in how GCC organisations approach AI,” said BCG X managing director and partner Robert Xu. “It’s no longer about selective implementation – there’s a clear understanding that AI should be integrated into all roles and processes.”
BCG X is the tech build and design unit of BCG.
GCC executives expect AI to boost productivity, with 66pc holding this view, but recognise the need for workforce upskilling. The region’s commitment to talent development is evident, with only 7pc anticipating AI-driven headcount reductions, lower than the global average.
Organisations in the six-nation bloc are embracing the ‘10-20-70 principle’ for AI implementation, allocating 70pc of efforts to people, processes, and culture. The UAE leads in AI workforce training, with 27pc of organisations having trained over a quarter of their staff, a model other GCC nations are adopting.
While leading in AI adoption, GCC executives are also aware of risks, including data privacy and regulatory challenges.
Dr Littig
“While many regions are caught in short-term AI experimentation, the GCC takes the long-term view,” said BCG managing director and partner Dr Lars Littig.
“The remarkable investment levels we’re seeing aren’t just about immediate gains – they reflect a deeper understanding that AI’s true socioeconomic impact will unfold over years, not quarters.”
GCC companies are adopting a three-tiered AI strategy: immediate productivity gains, critical function redesign, and new AI-powered business models. This approach requires visionary leadership and a focus on transformative opportunities.
The region’s most innovative organisations are blending technological capability with organisational readiness, focusing on system architecture, data strategy, and human factors. This comprehensive approach is setting the GCC apart in the global AI landscape.
avinash@gdnmedia.bh
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