What Are the Challenges Firms in the UAE and Saudi Arabia Face in GenAI Implementation?

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Organizations are investing in and using generative AI (Gen AI). While this technology promises to be transformative, incorporating it also has challenges. A recent global study conducted by SAS and Coleman Parkes found that the top concerns for leaders in the UAE and Saudi Arabia are a lack of understanding, sufficient data and regulation preparedness, and prohibitive costs.

According to the report, 46% report challenges in transitioning GenAI from a conceptual phase to practical use; 46% say there needs to be more appropriate tools for their business; 44% reveal they’re experiencing compatibility issues when trying to combine GenAI with their current systems; 44% face difficulties utilizing public and proprietary datasets effectively, and about 40% cite prohibitive direct and indirect costs associated with using LLMs. Private knowledge preparation, training, and ModelOps management costs are lengthy and complex.

Although there are obstacles, some early adopters have already experienced meaningful benefits, and 29% plan to enlist a third-party service to integrate and orchestrate GenAI for them. 

The report found that 2% have fully integrated GenAI into regular processes, while 48% are running initial implementation tests, exceeding the global benchmark of 43%. Another 34% intend to use GenAI within two years.

“While more organizations are beginning to embrace GenAI, it’s important to remember its true power lies not only in algorithms but in the synergy between data-driven insights and human ingenuity,” said Alexander Tikhonov, Regional Director – SAS Middle East, Turkey, and Africa.

Other key findings of the report:

Companies in UAE and KSA believe that integrating GenAI into data analysis and operational processes will lead to better predictive analytics accuracy. About 67% believe GenAI integration will likely result in measurable improvements in predictive analytics accuracy, and 62% anticipate substantial efficiency gains and cost savings from GenAI implementation.

Organizations that have adopted or are experimenting with GenAI integration into analytics processes have experienced benefits, including vastly improved efficiency in processing large datasets. About 84% report significant efficiency gains, enabling quicker and more accurate data analysis; 80% have bolstered their risk management and compliance efforts, ensuring better adherence to regulatory standards, and about 80% noted enhanced employee satisfaction, driven by the intuitive and supportive nature of GenAI tools.

When it comes to departments inside organizations that use or intend to use GenAI, sales (85%), production (81%), and customer/field service (76%) rank at the top. IT, R&D, and finance all sit in fourth place (72% each), with marketing following suit (71%).