Report Overview

The government’s significant investments in various smart city projects, supportive initiatives, and AI strategies are expected to boost the growth of UAE Artificial Intelligence (AI) Market during the forecast period between 2024 and 2030.

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

UAE Artificial Intelligence (AI) Market size was estimated to be worth USD 3.18 billion in 2023. During the forecast period between 2024 and 2030, the UAE Artificial Intelligence (AI) Market size is projected to grow at a CAGR of 6.29%, reaching a value of USD 8.54 billion by 2030. Major growth factors for the UAE Artificial Intelligence (AI) Market include extensive research activities, favorable government policies and regulations for the development of AI, and the launch of various AI-based products that cater to the demand for its major end user industries, including healthcare, BFSI, and retail.

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.

UAE Artificial Intelligence (AI) Market

Growth Drivers

Favorable Government Regulations and Policies

The UAE government has been significantly investing in establishing the country as the global center for artificial intelligence. The Advanced Technology Research Council, (ATRC), an arm of the Abu Dhabi Government, for instance, funded a deep learning algorithm training program helmed by an international team of 25 computer scientists and to be trained on 4,000 powerful computer chips, as reported by Time. The Dubai Future Foundation is also conducting the AI prompt program which is aimed to train one million people in AI prompting in the next three years. The Ruler of Abu Dhabi also recently launched the Artificial Intelligence and Advanced Technology Council to promote technological advancements and innovations in the country.

Challenges

Increasing Data Privacy and Security Concerns

AI models rely on large volumes of data, which comprise sensitive and confidential information about people, such as financial data, health records, copyrighted materials, etc., without their consent. It collects the data to provide a hyper-personalized user experience, which raises concerns surrounding potential misuse or abuse of the data. For example, without appropriate security measures, private information may be violated if unauthorized people or organizations obtain sensitive data. For example, a user's phone number may appear on the screen while responding to a prompt. This acts as a major restraining factor for the UAE Artificial Intelligence (AI) Market.

UAE Artificial Intelligence (AI) Market

Segmental Coverage

UAE Artificial Intelligence (AI) Market – By Offerings

Based on offerings, the UAE Artificial Intelligence (AI) Market is segmented into software, hardware, and services. The software segment accounts for the highest market share in the UAE AI Market by offerings. The software segment’s dominance is owing to the significant improvements in information storage capacity, strong computing power, and parallel processing capabilities that allowed for the provision of high-end services. As artificial intelligence (AI) technology develops, there will be a growing need for sophisticated and high-quality software tools and platforms due to businesses' increasing need to understand and analyze visual content to obtain insightful information.

UAE Artificial Intelligence (AI) Market – By Technology

Based on technology, the UAE Artificial Intelligence (AI) Market is segmented into deep learning, machine learning (ML), natural language processing (NLP), and machine vision. Deep learning holds the largest share of the UAE Artificial Intelligence (AI) Market. The growth of the segment is mainly attributed to its wide range of usage, such as image recognition, natural language processing, etc. Deep learning is extensively being used in various applications, including security systems, facial recognition, and self-driving cars, which is driving market growth.

UAE Artificial Intelligence (AI) Market – By Business Function

Based on business function, the UAE Artificial Intelligence (AI) Market is segmented into marketing & sales, human resources, finance & accounting, operations, cybersecurity, and others. The marketing & sales segment dominates the UAE Artificial Intelligence (AI) Market by business function. AI is emerging as an efficient tool to improve customer engagement, develop dynamic campaigns, produce sales, and boost return on investment (RoI). Furthermore, artificial intelligence (AI) enhances sales prospecting and lead generation through enhanced targeting, customization, decision-making, and other aspects.

Competitive Landscape

Major players operating in the UAE Artificial Intelligence (AI) Market include Omdena Inc., Microsoft, Google LLC, IBM, Intel Corporation, Daffodil Unthinkable Software Corporation, Yanzo, Digital Energy, Gleac, and CAI Concierge AI. 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 June 2024 – Presight AI Holding, an AI service management company based in the UAE, formed a partnership with Dell to boost AI and big data adoption in the country.

Scope of the Report

By Offerings

• Software

• Hardware

• Services

By Technology

• Deep Learning

• Machine Learning (NL)

• 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 & Telecommunications

• Healthcare

• Automotive & Transportation

• Oil & Gas

• Others