AI Maturity Declines In The Middle East
The index examines five key components: leadership and strategy, workflows, talent, governance, and investment. Together they provide a comprehensive view of how prepared organisations are to scale AI successfully; their AI maturity level.
Now in its second year, the global report draws on insights from almost 4,500 respondents globally, including 1,950 across nine markets in Europe and the Middle East including the United Arab Emirates (UAE) and Saudi Arabia. It shows that emerging technologies such as agentic AI are fuelling experimentation and delivering early returns across the region. However, the pace of change is moving faster than organisations' ability to scale AI in a structured, governed way. To this end, the region's average AI maturity score has dropped 10 points year on year, from 44 to just 34 out of 100.
Cathy Mauzaize, President, EMEA at ServiceNow, says 'Organisations across Europe and the Middle East are accelerating their AI projects, but many are still in the early stages of their journey. They recognise the potential and now is the time to build on that energy. To keep moving forward, organisations are exploring how to lay the right foundations to make the data work for them, and give their people the skills to use AI with confidence. According to IDC, European spending on artificial intelligence will reach $144.6 billion in 2028[1]. The opportunity is huge, but only if we focus on getting the basics right today.'
The report also outlines three major trends shaping the region's AI journey and what's needed to turn early success into lasting transformation.
AI is outpacing organisations' capacity to harness it
There is a clear appetite for innovation, with nearly half (47%) of organisations in Europe and the Middle East launching more than 100 AI use cases in the past year. UAE-based organisations are showing similar AI activity (49%), reflecting growing interest in large-scale experimentation.
Still, most remain in the early stages of implementation, as reflected in this year's overall European AI maturity score of just 34. The majority of the region's organisations are focused on experimentation and expansion, with only 6% reaching the augmentation stage, which is the most advanced stage identified in the survey. In the UAE, the AI maturity score stands at 35 — which is the highest in Europe and the Middle East, tied with the UK — with 9% of organisations progressing to the most advanced stage.
Agentic AI presents a clear opportunity
Agentic AI, the AI that can act autonomously, is positioned to reshape enterprise automation. However, awareness varies widely across the region. While 15% of organisations in Europe and the Middle East are already using agentic AI and 42% plan to implement it within 12 months, familiarity is still in its early days. Only one in five organisations are very family with agentic AI, revealing a significant knowledge gap.
The opportunity is clear, with over half of early adopters in Europe reporting improved gross margins (58%), greater efficiency and productivity (59%), and better experiences (60%).
Governance is the missing link
Rising adoption brings rising risk. AI at scale introduces serious challenges around cybersecurity, privacy, and regulatory compliance.
And while the number of UAE organisations that have made significant strides in AI data governance rose slightly from 42% in 2024 to 45% in 2025, there is a need for a greater focus on managing AI risk effectively. This is particularly true given that data security is cited by UAE organisations as the top barrier to realizing AI value.
To scale AI safely and effectively, governance must be foundational — not an afterthought. That means embedding policy, oversight, and accountability into platforms from the outset and approaching new technologies like agentic AI with a clear strategy in place.
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