Gulf states, led by the United Arab Emirates and Saudi Arabia, are aggressively investing in artificial intelligence, projecting a potential contribution of $320 billion to the region’s economy by 2030. This initiative faces challenges, including high energy demands and governance concerns, but leaders believe the region’s natural resources and commitment to sustainability will facilitate success in AI development, particularly in creating Arabic-language models.
In recent years, the United Arab Emirates (UAE) has expressed a significant commitment to establishing itself as a leader in artificial intelligence (AI). This initiative is now gaining traction among other Gulf nations, signifying a collective ambition to harness the capabilities of AI technology. According to a report by the consultancy PwC, AI is projected to contribute approximately $320 billion to the Middle East economy by 2030, which would represent around 2% of the global benefits from this technology. Stephen Anderson, the Middle East strategy and markets leader at PwC, emphasized the region’s willingness to engage with AI, stating that it fosters an environment conducive to experimentation. However, the rapid expansion of AI raises environmental concerns, particularly in terms of energy consumption and associated greenhouse gas emissions. For instance, Google reported that its emissions increased by nearly 50% from 2019 to 2023, attributing a portion of this rise to the energy demands of AI. The International Energy Agency forecasts that energy consumption fueled by AI, data centers, and cryptocurrencies could potentially double by 2026. Anderson posits that Gulf nations, which are largely dependent on fossil fuels, have a unique opportunity to emerge as significant players in the AI sector while simultaneously enhancing sustainability efforts. “We’re at the center of the world when it comes to energy – not just old energy, but particularly new energy,” he remarked, highlighting the region’s ability to produce solar energy at a low cost. Countries such as the UAE, Qatar, and Saudi Arabia are leading this investment push. Saudi Arabia, in particular, is looking to diversify its economy away from oil and gas, investing significantly in AI technologies as part of its Vision 2030 strategy. Projections from the Saudi Data and AI Authority (SDAIA) suggest that AI could contribute up to 12% of the kingdom’s GDP by 2030, with an impressive annual growth rate of 29% for this sector. Efforts are underway throughout the region to create Arabic-language AI models tailored to local contexts, addressing a gap in the market for such technologies. Examples include the UAE’s Jais tool and Saudi Arabia’s ALLaM chatbot, the latter now hosted on Microsoft’s Azure platform—an initiative that underscores the importance of developing regional capabilities to compete with established English-language models. Nick Studer, CEO of Oliver Wyman Group, noted that a focus on Arabic language models may elevate Saudi Arabia’s competitiveness against markets with a longstanding advantage in this arena. He described the ongoing development of various Arabic-based large language models across the country, catering to diverse applications from chat interfaces to governmental uses. One persistent challenge in the AI sector is governance—specifically, how to safely and ethically regulate AI technologies and data. During the recent Global AI Summit in Riyadh, significant policy advancements were made, including guidelines from SDAIA for the responsible use of deep fakes and the establishment of the Riyadh Charter for AI within the Islamic World. Studer emphasized that an effective regulatory framework is vital for the responsible evolution of AI, stating, “It is critical that we have sensible regulation in place.”
The surge of interest in artificial intelligence among Gulf states reflects a strategic pivot towards technology and innovation as drivers of economic diversification. The concept of harnessing AI for economic growth and sustainability is particularly pertinent in a region historically reliant on fossil fuels. As Gulf countries pursue ambitious visions like Saudi Arabia’s Vision 2030, the integration of AI presents both opportunities for economic enhancement and challenges related to energy consumption and environmental impact. The focus on developing local Arabic-language models illustrates a broader initiative to create technological solutions that cater to the regional population while positioning these nations as competitive players on the global stage.
In conclusion, the Gulf states, particularly the UAE and Saudi Arabia, are advancing towards a future driven by artificial intelligence, seeking to capitalize on its potential to diversify their economies and innovate within the technological landscape. While there are valid concerns regarding energy consumption and governance, strategic investments in sustainable AI applications and a focus on Arabic-language models may pave the way for these nations to emerge as leaders in the field. The ongoing development of regulatory frameworks will be crucial to navigating the complexities associated with AI deployment and ensuring ethical practices.
Original Source: www.cnn.com
