To Build AI-Powered Ecosystems, Prioritize Local Talent and Knowledge-Sharing: HP’s Enrique Lores

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AI-driven businesses are scaling rapidly in the Middle East, driven by strong investment and increasing demand for innovation. Investment, however, is not enough to ensure global competitiveness. A strong ecosystem that nurtures talent, enables research and encourages ethical governance is critical. As regional AI startups seek to become leaders on the world stage, they need to focus on key enablers, including talent development, governance, public-private partnerships and developing world–class infrastructure.

In an exclusive interview with MIT Sloan Management Review Middle East editor Liji Varghese, HP President and CEO Enrique Lores outlined the critical factors shaping AI’s trajectory in Saudi Arabia and the wider Middle East.

The Foundation of a Thriving AI Ecosystem

Saudi Arabia is making substantial investments in AI and emerging technologies. To design AI-powered ecosystems in the region, Lores encourages prioritizing three elements: localized talent, industry collaboration, and dynamic knowledge-sharing platforms. 

According to Lores, a central component of this transformation is establishing AI centers of excellence, which act as catalysts for research, local talent development, and industry-wide collaboration. Beyond structured training programs, organizations should also create opportunities for ongoing professional development. By hosting regular workshops and seminars, and providing a space for industry professionals to exchange insights and stay updated on the latest AI advancements, these centers help identify new opportunities and demonstrate the tangible impact of AI across various sectors. 

Governance and Ethical AI Development

While technological investment is accelerating, governance structures must evolve in tandem to ensure AI-driven growth remains sustainable and responsible. As AI becomes deeply embedded in industries, governments and enterprises must work together to craft regulatory frameworks that promote ethical AI use while enabling innovation.

Saudi Arabia’s leadership in AI governance is evident through its policies and strategic collaborations. Lores highlights the kingdom’s approach: “The government has been highly supportive—helping us identify talent, fostering innovation, and ensuring AI investments contribute to long-term economic growth.”

HP, for example, is also engaged in policy advocacy to shape an ethical AI landscape, reinforcing the importance of security, transparency, and fairness in AI-driven decision-making.

Beyond national initiatives, multinational corporations play a role in shaping ethical AI. “While new technologies bring excitement and promise, their implementation can sometimes be challenging. In this exciting chapter, public-private collaboration will be essential to tackling complex challenges and ensuring a future where innovation benefits everyone,” he further adds. Collaborative governance models between policymakers, academia, and industry leaders will be critical in setting regional AI standards. 

Why Saudi Arabia? 

Choosing the kingdom as the first location for a PC manufacturing facility in the Middle East was a “logical choice,” says Lores. Saudi stands out due to its strategic geographic location, large population, and market potential. “In terms of building the factory, it clearly makes the most sense given the volume and size,” he explains. 

However, Saudi Arabia is not the only Middle Eastern country investing heavily in AI. Qatar and the UAE are also making strides, with significant funding for AI research and development. 

“We are working on similar initiatives in other countries, including the UAE. The potential we see extends across the region,” Lores notes. At the same time, the region’s ability to attract talent strengthens its appeal.

The broader region’s commitment to AI reflects a shared vision of technological leadership, with each country contributing to an interconnected innovation ecosystem.

The Future of Work: AI as an Enabler

Work is also undergoing a radical transformation. Employees increasingly seek purpose-driven roles, while organizations navigate hybrid work models that demand seamless digital collaboration. According to HP’s Work Relationship Index, only 28% of knowledge workers feel they have a healthy relationship with work, and many lack the technology necessary for success.

AI can be a game-changer by reducing repetitive tasks, improving workflows, and enhancing collaboration to increase employee fulfillment and unlock growth. It is already transforming industries, creating opportunities to make work easier, more enjoyable, and career-advancing. In fact, three-quarters of AI users say they already see these benefits.

From AI-powered PCs that boost productivity to intelligent print solutions that bridge creativity and execution, emerging technologies have the potential to make work more meaningful. “AI-driven experiences and more are the future of work, transforming careers and workspaces,” says Lores. 

Navigating this transformation also requires strong leadership and a commitment to workforce development. Organizations must invest in training programs to equip employees with AI-related skills. HP, for instance, launched HP Life, a free digital skills initiative that has already enrolled over 1.2 million learners globally, including 180,000 in the Middle East. 

“Our goal is to make AI accessible to businesses of all sizes and upskill talent to enhance efficiency and drive innovation,” Fadle Saad, Managing Director, Saudi Arabia, HP MENA Regional Headquarters, said in a press release last month.

AI with Accountability

While AI presents immense opportunities, its risks cannot be overlooked. Governance frameworks must be designed to ensure transparency, fairness, and accountability in AI-driven decision-making. Projections suggest that AI could boost global labor productivity by 1.5 percentage points over the next decade, adding $13 trillion to the global economy. However, without stringent ethical safeguards, AI’s benefits could be overshadowed by  bias, security breaches, and misuse.

Leading organizations are prioritizing responsible AI development by embedding governance principles into their technology. Lores says the good AI can bring to the economy and society can be outweighed if it is not built ethically, responsibly, and securely. That’s why AI Governance Principles should be at the core of every AI innovation.  This includes:

• Robust security controls
• Stringent standards for data privacy 
• Designed to be inclusive, accessible, and devoid of unjust discrimination 

A Collective Vision for AI Leadership

Saudi Arabia’s AI ambitions represent a broader Middle Eastern aspiration to become a global AI powerhouse. The region’s investments in AI infrastructure, workforce development, and regulatory frameworks set the stage for long-term success. The challenge is to ensure that these efforts translate into sustained, scalable impact, transforming the region into a hub for AI-driven innovation.