KSA Organizations Have Defined AI Strategies with Rising Investments and Urgency Amid Ongoing Deployment Challenges
News Summary:
- 72% of organizations in KSA have a clear strategy to deploy AI powered solutions. Yet businesses are facing challenges in fully leveraging AI.
- Organizations are investing heavily in AI, with 50% companies allocating 10-30% of their current IT budget to AI deployment, but returns are not yet meeting expectations.
- There is a relentless sense of urgency with 60% of companies saying they have a maximum of a year to get their AI strategies right or face potential negative impacts.
- Networks yet need to be equipped to meet AI workloads; 31% of companies in KSA report having the necessary GPUs to meet current and future AI demands.
Riyadh, Kingdom of Saudi Arabia, 28 January 2025: Ahead of LEAP 2025 conference in Riyadh, Cisco announced findings from its latest AI Readiness Index, that reveals that 72% of organizations in KSA have a strategy to deploy AI powered solutions in their organisation. The report highlights that despite increasing urgency in deployment and investment, businesses in KSA face challenges in adopting, deploying, and fully leveraging AI, amid the rapid market evolution and the significant impact AI is anticipated to have on business operations.
The Index is based on a double-blind survey of 7,985 senior business leaders from organizations with 500 or more employees across 30 markets, including KSA. These leaders are responsible for AI integration and deployment within their organizations. The AI readiness index is measured across six pillars: strategy, infrastructure, data, governance, talent, and culture.
Key Findings include:
- Acting with Urgency
AI has become a cornerstone for business strategy, and there is an increasing urgency among companies to adopt and deploy AI technologies. In KSA, nearly all (98%) report an increased urgency to deploy AI in the past year, primarily driven by the CEO and leadership team. Nearly all (86%) companies say they only have 18 months to start demonstrating the impact of AI. More than half (60%) give it only 12 months.
- Rising Investment:
Over the past year, AI has been a priority spend for organizations in Saudi Arabia, with 50% allocating 10-30% of their IT budgets to AI projects. AI investments have focused on three strategic areas: IT infrastructure (51%), cybersecurity (40%), and data management (38%). The top three outcomes they aim to achieve include improving the efficiency of systems, processes, operations, and profitability; the ability to innovate and remain competitive; and creating a better experience for customers and partners.
Notably, 45% of organizations plan to allocate more than 40% of their IT budget to AI investments in the next four to five years, a significant increase from 8% of companies who said they are allocating a similar portion of their IT budget to AI currently. Additionally, 50% indicating that between 10% to 30% of their IT budget is allocated to AI deployments. However, 40% of respondents report that the gains from their AI investments have not yet met expectations in augmenting, assisting, or automating current processes and operations.
- Infrastructure Preparedness:
Networks are yet to be equipped to meet AI workloads. There are gaps in compute, data centre network performance, and cybersecurity, amongst other areas. Only 31% of organizations have the necessary GPUs to meet current and future AI demands and nearly a third (34%) have the capabilities to protect data in AI models with end–to–end encryption, security audits, continuous monitoring, and instant threat response.
In Saudi Arabia, 62% rated improving scalability, flexibility, and manageability of their IT infrastructure as their top priorities, showing they are aware of the gaps that need to be addressed.
- Addressing Skills and Talent Gaps:
A lack of skilled talent is a top challenge for companies in Saudi Arabia, underscoring the critical need for skilled professionals to drive AI initiatives. Only 46% of KSA organizations claim their talent is at a high state of readiness to fully leverage AI, and 39% say their organizations lack in-house talent necessary for successful AI deployment.
