Report Overview

Growing significant investments in smart city projects and rapid advancements in technology infrastructure are expected to boost the growth of Saudi Arabia Artificial Intelligence (AI) Market during the forecast period between 2024 and 2030.

Saudi Arabia Artificial Intelligence (AI) Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Artificial Intelligence (AI) Market size was estimated to be worth USD 1.52 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Artificial Intelligence (AI) Market size is projected to grow at a CAGR of 6.11%, reaching a value of USD 9.33 billion by 2030. Major growth factors for Saudi Arabia Artificial Intelligence (AI) Market include rising data volume and an increasing need for data analytics to generate insights along with technological advancements and innovations in the sector. In addition, high investment in AI research and development and favorable government policies are anticipated to drive Saudi Arabia Artificial Intelligence (AI) Market during the period in analysis.

Artificial Intelligence (AI) – Overview

The artificial intelligence (AI) market refers to the application of AI technology, such as machine learning (ML), natural language processing (NLP), and computer vision, to various industries and sectors. It involves the development and deployment of intelligent systems and solutions that can simulate human intelligence, perform cognitive tasks, and automate complex processes. The market includes various AI-enabled products, platforms, and services, such as chatbots, virtual assistants, image recognition tools, predictive analytics solutions, and speech recognition systems, among others.

Saudi Arabia Artificial Intelligence (AI) Market

Growth Drivers

Favorable Government Policies and Investments

Saudi Arabia has recently revealed USD 40 billion in funding for AI under its Vision 2030 and economic diversification plan, as reported by The New York Times. The funding makes the Kingdom the world’s largest investor in AI and is targeted towards establishing it as the global leader in the sector. Along with boosting the adoption of AI, Saudi Arabia is also significantly investing in training in AI to deal with the skilled labor shortage in the sector. The Kingdom recently launched an initiative called AIM, which is aimed at training over 1,000 engineers in AI. Such favorable government investments and initiatives are projected to drive Saudi Arabia Artificial Intelligence (AI) Market in the coming years.

Challenges

Shortage of Skilled AI Professionals

The adoption rate of AI across various industries may slow down owing to the shortage of workers with AI expertise. There is a significant shortage of professionals who carry a deep understanding of various AI technologies, such as machine learning, deep learning, natural language processing, and others. According to the IBM Global AI Adoption Index 2023, conducted by Morning Consult on behalf of IBM, the main barrier preventing organizations that are researching or using AI from successfully adopting the technology is "limited AI skills and expertise."

Saudi Arabia Artificial Intelligence (AI) Market

Segmental Coverage

Saudi Arabia Artificial Intelligence (AI) Market – By Offerings

Based on offerings, Saudi Arabia Artificial Intelligence (AI) Market is segmented into software, hardware, and services. The software segment holds the largest share in Saudi Arabia Artificial Intelligence (AI) market. The industry will keep growing to provide precise data, develop clever applications, and advance machine and deep learning. For example, cloud-based software deployment has gained prominence, while pre-trained models and configurable AI are still gaining traction.

Saudi Arabia Artificial Intelligence (AI) Market – By Technology

On the basis of technology, Saudi Arabia Artificial Intelligence (AI) Market is segmented into deep learning, machine learning, natural language processing (NLP), and machine vision. The deep learning segment accounts for the highest market share owing to its rising integration in the automotive sector. For the automobile to properly detect its surroundings, sensor data from cameras, radar, and lidar is processed using deep learning algorithms. Meanwhile, the machine learning (ML) segment is also growing at a substantial rate. Machine learning tools are increasingly being deployed to boost customer services and improve retention rates.

Saudi Arabia Artificial Intelligence (AI) Market – By End User

By end user, Saudi Arabia Artificial Intelligence (AI) Market is divided into media & entertainment, BFSI, IT & telecommunications, healthcare, automotive & transportation, oil & gas, and others. The BFSI sector dominates Saudi Arabia Artificial Intelligence (AI) Market. The sector is increasingly adopting AI into its operations to automate tasks, predict market trends, and boost customer services through chatbots. AI assists the banking sector in making more informed lending decisions by evaluating the borrower’s creditworthiness more accurately and minimizing default. AI also helps in personalizing services and products in the finance sector, which further drives its adoption in Saudi Arabia market.

Competitive Landscape

Major companies in Saudi Arabia Artificial Intelligence (AI) Market include Retailo Technologies, Quant Data & Analytics, JMM Innovations, Lisan.ai, Tahkom System’s, Foodlobby, Elevatus, Unniit, and Rabeh. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 – Armada, the world’s first full stack edge computing platform based in the United States, announced a collaboration with Edarat Group, to boost edge computing and Artificial Intelligence (AI) in the Middle East in the industrial sector of the MENA region, including Saudi Arabia.

Scope of the Report

By Offerings

• Software

• Hardware

• Services

By Technology

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

By Business Function

• Marketing & Sales

• Human Resources

• Finance & Accounting

• Operations

• Cybersecurity

• Others

By End User

• Media & Entertainment

• BFSI

• IT & Telecommunication

• Healthcare

• Automotive & Transportation

• Oil & Gas

• Others