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In the same league as the United States with of respondents using artificial intelligence (AI) in at least one of their business functions, progress in the Middle East and North Africa (MENA) can be seen — but there’s still significant untapped potential. Already AI is poised to deliver over 9% of the Middle East’s Gulf Cooperation Council (GCC) countries’ combined GDP, and the swift progress of generative AI implies that the figure will be quickly exceeded. 62% While many energy and materials companies, operating and competing internationally, are keen to raise production, distribution, and maintenance efficiency with AI, retail sectors are racing ahead; having long-mined consumer data to inform pricing and promotions. However, for industries like construction, getting started is a little more tricky since they either cannot yet collect the data required to train AI models or need additional technical expertise. Going deeper into the business functions, marketing and sales is the most common application of AI across MENA industries. What needs to be done to tap into other functions, such as supply chain management, risk, and corporate finance? The answer lies in the intersection of cultural, regulatory, and infrastructure changes — which are individually complex, if not thought out carefully. Bridging the Cultural Divide for AI in MENA While McKinsey’s highlights the need for internal transformation across the GCC, the UAE stands out as a leader in fostering the right culture and workflows to embed AI tools seamlessly. report As part of the region’s strategy to ensure students and employees have access to the right training and knowledge to build digital-native enterprises, the UAE established . This university educates and develops skills in computer vision, machine learning, natural language processing, and beyond. MBZUAI When it comes to making cultural shifts, it’s critical to ensure senior leadership is aware and on board with the scope of AI potential in each business function to justify budgets and needs holistically. Leaders must get the right training and unite board members to develop a business-led use case roadmap. The ideal blueprint comes with clear communication of the benefits of workflow changes, and what they mean for individual roles. As part of the change management process, appointed leaders that open multi-channel two-way communication can formally collect feedback and informally gather worker perceptions, praising or addressing any ideas and concerns. Involving team members in the process this way helps to boost acceptance and engagement with the strategy. Working with MBZUAI students will help UAE businesses build an AI-focused culture from the beginning. Businesses in the region may choose to invest in upskilling, collaborating with graduated tech specialists, or consider offshore services to bridge any talent gaps — although, this is where the regulatory challenges come in. Clearing the Red Tape: Streamlining Regulations for MENA’s AI Stringent data storage regulations in many MENA countries restrict companies from leveraging public cloud options abroad. This, coupled with a lack of globally established AI risk frameworks, creates roadblocks for organizations seeking to deploy AI, despite its perceived value. For this reason, predicts a significant rise in security and risk management (SRM) spending across the MENA region. Their forecast expects a 12.1% increase in 2024, reaching a total of US$3.3 billion. Investment in AI-powered SRM helps regional leaders to reduce the threat landscape, proactively identifying potential vulnerabilities or malicious behavior across their digital ecosystems. Gartner Organizations must establish policies that govern application usage and also implement training on cybersecurity incidents associated with employee behavior in their change management strategy. This will help minimize the risks of privacy and copyright infringement and align with the for handling personal data of identifiable individuals — which require MENA organizations to maintain a higher standard of data privacy and cyber security measures. GCC’s latest data protection laws With increased security, training, and governance, MENA companies reduce the risk of collaborating overseas, enabling them to maximize the global market. Building the Infrastructure for High-Speed AI It takes agile companies and infrastructure to scale globally. Yet, only of companies in the MENA region feel they have the technology infrastructure and architecture to support AI. UAE paves the way with the recently creation of MGX, a company focused on investing in: 35% announced data centers and connectivity AI infrastructure: logic and memory chip design and manufacturing Semiconductors: AI models, software, data, life sciences and robotics AI core technologies and applications: Data needs to flow through data pipelines like items on a production line. You can add parts and modify them to different customers or business use cases, but the core product is the same. This type of data structure is beneficial in the short term as it makes data transfer seamless. It also provides longer-term value by making it easier to integrate new technologies later down the line. This is where the UAE’s advanced training programs set the region as an AI frontrunner, ensuring regional data users understand how to navigate data pipelines efficiently. This is a two-pronged effort of flexible technological architecture and user-friendly analytics. With the right training and API-based middleware, employees can maximize a combination of intuitive applications across IT and business teams. These modern-built apps are rich in automation, helping teams alleviate manual, technical tasks and improve the employee experience. AI adoption in MENA is in full swing, with industries across retail, energy, and financial services looking at ways to increase efficiency. A solid change management plan rooted in the company culture makes a successful rollout possible. Strong regional performers will have a well-informed leadership team, clear AI objectives communicated, and investment into agile and scalable infrastructure. This article was originally published by on Maryam A Hassani 150sec.

Navigating the Future of AI in MENA Countries

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Governments are embracing the digital revolution: the GovTech sector, , is projected to reach an astonishing $1 trillion by 2027. One of the major players contributing to this transformation is , an IT company with more than 17 years of experience developing a wide range of solutions, from websites and e-commerce to enterprise and govtech. P2H has already garnered the trust of over 100,000 customers and millions of end-users. valued at over $430 billion P2H I spoke with Dmitriy Breslavets, a co-founder at P2H, who provides insight into GovTech from a developer's perspective and delves into the unique challenges and opportunities that arise when working across different regions. — Let's start with a short intro. What exactly is GovTech? — GovTech initiatives include a broad spectrum of projects, ranging from user-friendly government websites and mobile applications to data analytics and artificial intelligence systems. Governments are deploying chatbots to interact with citizens, blockchain to enhance identity verification and authentication, and digital voting systems to make elections more accessible. GovTech also extends to smart city initiatives. Many countries already have comprehensive e-government portals that offer services like registering companies, applying for permits, and paying taxes. Digital India program, South Korea’s Digital Government Initiative, and the USA.gov portal are notable examples. — How did P2H start working with government agencies? — Our approach has always revolved around establishing strong, trust-based relationships with our partners through the flawless execution of small tasks, which we call the "quantum of trust." We first encountered a government client when they had a straightforward design-to-HTML conversion request. We executed it with precision, which prompted our client to entrust us with more challenging projects. Over time, as their confidence in our abilities grew, they presented us with more complex and demanding tasks in the e-government sector. — In which markets are you currently operating? — P2H operations span across three key regions. In the Middle East and North Africa, we have successfully established a local presence with an office and a dedicated team. Our European endeavors start in Portugal. We plan to expand into Spain, bypass the well-digitized markets of France and Germany, and foster collaborations in Slovakia, Slovenia, and potentially the Czech Republic. Finally, due to its high maturity level, the US market presents unique challenges. However, we actively participate in tenders and study the landscape to enhance our management and production capabilities. This approach will ultimately allow us to deliver top-tier products tailored to local needs. — In 2022, the International Bank for Reconstruction and Development mentioned significant progress in digitizing government services in . Can you elaborate on the reasons behind this success? Bangladesh, Egypt, Oman, Mongolia, Tanzania, Saudi Arabia, and Ukraine — These countries have just recently embarked on the path of government digitalization. This means they can leverage the experiences of others to develop modern, efficient, and user-friendly services without compatibility concerns with outdated systems. They can adopt or adjust comprehensive, ready-made solutions to meet their unique requirements. This fact enables a swift transition from paper-based processes to fully digital ones. For instance, Ukraine had limited exposure to GovTech until recently, when the Ministry of Digital Transformation was established in 2019. The Ministry launched the Diia portal, which has over 19 million users and more than 30 government services available in a few clicks on a smartphone. It is also a powerful brand, and some African nations are even importing the platform. Conversely, digitalization started decades ago in the US and parts of Europe. These regions already operate intricate, long-standing systems that can be challenging to replace or modernize. Citizens have also grown accustomed to specific business processes and interfaces. As a result, governments have to maintain old solutions. As far as I can tell, overhauls only occur when there is a compelling need, budget, and will to do so, which is often lacking. Interesting fact: the demand for was higher than ever during the pandemic. This programming language from the 1960s is often used in legacy government apps. COBOL developers — From a GovTech developer's perspective, which regions are more convenient to work with? — From my perspective, there's nothing more challenging for a developer than working with existing code. The task isn't just to avoid breaking it but also to build upon it. Most programmers prefer starting from scratch. Countries at the start of their e-government journey can afford to do so. I’ll give you an example from our experience. Expanding to the US and Europe often involves integrating with Microsoft products. However, we can offer open-source platforms, Linux, various cloud solutions, and more in Saudi Arabia. They are open to considering different options to avoid dependence on a single vendor. This strategy allows them to create diversified technical solutions, which are easier to maintain. Dealing with legacy systems comes with challenges. It becomes a vicious cycle where improvements are necessary but limited to avoid disruptions. This emphasizes the importance of will I already mentioned. Someone needs to take responsibility for change and be willing to take risks for the transition to happen. — You have substantial experience implementing GovTech solutions in Saudi Arabia. Could you share your thoughts on the specifics of this market? — Saudi Arabia, or KSA, is one of the countries digitizing government services from scratch, leveraging the experiences of more digitally advanced neighbors like the UAE. Currently, it is executing the Vision 2030 program for economic diversification, global engagement, and enhanced quality of life. The program includes e-government as a core component of its strategy. Saudi Arabia can afford to hire numerous consultant specialists to oversee the process. Moreover, the country strictly follows a vendor diversification approach when developing digital platforms. This approach allows them to mitigate risks in case one of the vendors withdraws from the project. Additionally, companies seeking contracts must create jobs within Saudi Arabia. The government mantra is, "We don't work with those who come solely for profit." I am confident that this strategy will enable KSA to achieve its goals. We actively contribute to government digitalization along with other vendors. We don't consider each other competitors but rather collaborators, understanding that we can't monopolize the entire market. This fosters the growth of "co-opetition," where suppliers share knowledge, conduct cross-audits, and recommend solutions to one another. — Could you also describe the peculiarities of the Portuguese and US markets? — From what I’ve seen, Portugal has already automated many basic scenarios. The ePortugal portal provides a wide range of online services to citizens and businesses, covering tax-related issues, business registration, employment, social security, healthcare, and many other areas. However, evolving needs give rise to new challenges. Portugal envisions itself as an innovation hub in Europe. To achieve this goal, the country hosts regular Web Summit conferences and creates favorable conditions for nomads and businesses. There is a growing demand for startup-related GovTech solutions. It's worth noting that Portugal rigorously selects vendors, which makes the process relatively time-consuming. There are also stringent requirements for suppliers seeking to operate at the federal level in the US. However, GovTech is highly decentralized there. There is substantial demand for digitalization at the municipal level. Local authorities are focused on addressing specific issues and are relatively flexible in selecting contractors. — How can the digitalization of public services be made effective? — In my experience, an in-depth understanding of the customer, whether an individual or a business, enables us to create user-centric solutions. Governments must possess deep insights into their citizens to make systems that will be in demand. Otherwise, platforms may function but remain underutilized as they are inconvenient, difficult to navigate, or incompatible with specific devices. In Saudi Arabia, for example, there is a keen understanding of the population's needs. KSA ministries account for cultural factors, technical capabilities, and internet prevalence. They aim for accessibility, even for citizens with older phones, ensuring all can, for instance, make electronic donations during Ramadan. — Is it accurate to say that GovTech development always involves significant expenditures? — In general, yes, because GovTech systems are high-traffic and serve millions of users. Furthermore, they demand top-tier UI/UX to ensure user clarity. I'd also like to point out that robust support is crucial. The consequences of a specific company's website or application breaking vastly differ from when an entire nation's operations are disrupted. The responsibility to citizens is monumental, as are the potential costs in case of system failures. On top of that, government entities must safeguard sensitive citizen data, ensure their privacy, protect against rising cyber threats, and maintain secure communication channels, all of which add to the cost of GovTech projects. — What trends are currently emerging in the GovTech field? — One notable trend I'm seeing is AI becoming increasingly widespread. Governments can utilize AI to facilitate various tasks, including immigration assessments, fraud detection, infrastructure planning, customer support, and many others. For example, Singapore has a virtual assistant called "Ask Jamie." It uses AI to help people and businesses find information from around 70 government agency websites. By 2030, to the global economy, with governments being one of the key beneficiaries. AI is expected to contribute over $15 trillion Countries that proactively explore ways AI can enhance interactions between citizens and governments can gain a significant advantage in the future. — Are there any obstacles preventing the growth of AI in GovTech? — AI development is heavily dependent on resolving regulatory concerns. Government entities place great importance on data security and risk mitigation. They have to serve the public fairly and thus comply with rigorous standards when addressing critical AI matters such as trust and safety. Businesses may be willing to take certain risks in pursuit of competitive advantages. However, governments have no competition and, therefore, no reason to choose technological convenience over reliability. This fact may impede progress. Once regulatory barriers are successfully overcome, the pace of AI development is likely to become unstoppable.

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