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Why UAE businesses are ahead in AI adoption, reveals IBM's Lula Mohanty
Why UAE businesses are ahead in AI adoption, reveals IBM's Lula Mohanty

Gulf Business

time28-07-2025

  • Business
  • Gulf Business

Why UAE businesses are ahead in AI adoption, reveals IBM's Lula Mohanty

Lula Mohanty, managing partner for IBM Consulting MEA/Image: Supplied The UAE has emerged as a surprising but confident frontrunner in AI governance, according to a In an exclusive interview with Gulf Business podcast Situation Today , Lula Mohanty, managing partner for IBM Consulting across the Middle East and Africa, shared her insights on the regional implications of the study and how IBM is helping organisations operationalise AI at scale. 'I've recently come into the region, and what excites me most is the scale of opportunity,' she says. 'There is real momentum around AI here, and the UAE is treating it not just as an experiment, but as a major economic imperative.' From vision to execution Mohanty highlights a striking trend: one in three organisations in the UAE has appointed a Chief AI Officer—a significantly higher figure than global averages. According to her, this regional leadership is rooted in long-term national strategies such as UAE's AI Strategy 2031, bold investments in digital infrastructure, and a government mindset that treats AI as a force multiplier. 'This leadership is rooted in UAE's long-term vision,' she says. 'It's a country where AI is not just another prompt bar—it's an economic driver, as His Excellency Omar Sultan Al Olama has described.' His Excellency Omar Sultan Al Olama was appointed as the UAE Minister of State for Artificial Intelligence in 2017, becoming the world's first minister in this field. But while the UAE may be setting the pace, the real challenge lies in embedding AI within the fabric of an organisation. 'Creating AI models is no longer the hard part,' Mohanty says. 'The challenge is in integrating those models into day-to-day business operations in a scalable, secure, and ethical way.' This is where CAIOs are evolving from technologists into cultural leaders. According to the study, 40 per cent of UAE CAIOs are prioritising change management, higher than the regional average. These leaders are tasked with creating the conditions such as governance, security, and above all, mindset, for AI to thrive. 'At IBM, we ran a company-wide hackathon to embed AI thinking across the business. Over 178,000 IBMers participated. It was about building a culture where AI becomes business as usual, not an exception.' Watch the full video interview here:  The importance of top-down AI strategy The report also shows that 90 per cent of UAE CAIOs receive strong support from their CEOs, with 53 per cent reporting directly to the CEO or board. Mohanty believes this top-down commitment accelerates deployment and unifies organisational priorities. 'When leadership puts AI at the centre, everything else aligns—resource allocation, accountability, speed of decision-making. It becomes an enterprise-wide conversation, not a departmental initiative.' IBM has mirrored this approach internally. Through its enterprise-wide AI strategy, IBM reportedly saved over $3.5bn in productivity using its watsonx platform—a blueprint now being adapted for clients in the region. From pilots to measurable ROI Despite the optimism, challenges remain. Around 76 per cent of UAE organisations are still in the pilot phase of AI deployment, compared to 60 per cent globally. Scaling beyond proof-of-concept requires more than vision—it requires infrastructure, trusted data, and cross-functional collaboration. 'POCs are everywhere, but the real challenge begins when you try to integrate AI into your business model,' Mohanty says. 'A platform-first mindset is key.' Financial autonomy also plays a role. The study reveals that 79 per cent of UAE CAIOs control their organisation's AI budget, significantly higher than the global average. 'This ownership allows them to prioritise impactful programmes and track ROI. It's about putting your money where your mouth is.' On-the-ground impact: AI across sectors IBM is actively partnering with public and private sector players to bring AI to life in the UAE. Examples include a strategic partnership with e&, announced at WEF 2025, to deploy an end-to-end AI governance solution using IBM's 'The potential of AI in public administration, logistics, and healthcare is enormous,' says Mohanty. 'We're only just getting started.' The changing face of AI leadership The study also found that 69 per cent of UAE CAIOs come from data-related roles, and 48 per cent from operations. This signals a shift in the kind of leadership required. 'It's not enough to know how AI works—you have to know where it will work,' she explains. 'The most effective leaders now connect insights to impact. It's not about assistants; it's about orchestrated workflows.' Internal promotions are also making a difference. 69 per cent of UAE CAIOs were promoted internally, which Mohanty believes drives cultural alignment. 'They hit the ground running, they know the processes, and they have the credibility to lead transformation. It also makes the CAIO role aspirational.' Experimentation vs accountability Despite challenges in defining perfect AI metrics, 74 per cent of UAE CAIOs are moving forward with AI programs. Mohanty says organisations must embrace a 'progress over perfection' mindset. 'We didn't wait for perfection when we built our AskHR platform. We set a modest target—10,000 hours saved—and ended up saving 12,000. Now we're handling over 11.5 million interactions.' She advises organisations to start with quick wins, define clear exit criteria for pilots, and adopt a phased approach to scale. 'AI can become outdated quickly. You have to move fast—but with discipline and governance in place.' A global playbook from the UAE For Mohanty, the lessons from the UAE are clear: build from the top, invest in platforms, integrate AI into every function, and cultivate a mindset shift. 'This is about building a scalable AI architecture with clear strategies, skills, and cultural readiness,' she said. 'The UAE has shown that AI can become part of an organisation's DNA—not just as a smart model, but as a driver of enterprise-wide transformation.'

UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study
UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study

Gulf Business

time15-07-2025

  • Business
  • Gulf Business

UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study

Image: Getty Images The United Arab Emirates is at the forefront of a growing global trend in artificial intelligence governance, with more organisations appointing chief AI officers (CAIOs) than any other country surveyed, according to a new global study by the IBM Institute for Business Value (IBV), conducted in collaboration with the Dubai Future Foundation (DFF). The study, based on a global survey of over 600 CAIOs across 22 countries and 21 industries, reveals that 33 per cent of organisations in the UAE have appointed a CAIO, compared to the global average of 26 per cent. These leadership roles are proving valuable — organisations with a CAIO report 10 per cent higher return on investment (ROI) on AI spending. Where CAIOs lead a centralised or hub-and-spoke operating model, ROI rises by as much as 36 per cent. The report features a foreword by His Excellency Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, who emphasised the cultural and operational importance of AI leadership. 'AI is not a singular breakthrough, it's ten thousand small shifts. It's cultural. It's institutional. It's a habit. The CAIO will be the one pushing that habit forward – across public administration, healthcare, education and logistics. More than a technologist, the CAIO is a translator between vision and execution, a bridge between strategy and science, and a steward of value across the enterprise.' The report includes contributions from key UAE entities such as the Roads and Transport Authority (RTA) and Dubai Customs, showcasing a cross-sectoral view of AI strategy in the country. 'Dubai's early adoption of the Chief AI Officer role reflects our national commitment to a responsible, future-ready government,' said Saeed Al Falasi, director of the Dubai Center for Artificial Intelligence. 'This study reinforces that CAIOs are strategic enablers and catalysts that drive the city's vision for the future. By empowering these leaders with the right tools, we are setting the stage for scalable, measurable AI impact across key sectors in Dubai.' Shukri Eid, VP and GM, IBM Gulf, Levant and Pakistan, added: 'The UAE is setting a global benchmark by embedding Chief AI Officers within organisations, ensuring AI is a strategic enabler across sectors. This is a testament to the nation's foresight in shaping a future-ready economy. As we continue our collaboration with the Dubai Future Foundation, IBM remains committed to helping organisations scale their AI capabilities to drive measurable, long-term impact.' Lula Mohanty, managing partner, Middle East and Africa, IBM Consulting, said: 'By appointing CAIOs early and giving them visibility and budget control, UAE organisations have laid a strong foundation for enterprise AI. The next step is execution, moving beyond pilots, embedding AI into core business functions and delivering measurable ROI. IBM is proud to partner with UAE clients on this next phase of their AI journey.' Key findings: UAE CAIOs driving stronger results UAE CAIOs benefit from stronger senior leadership support: 90 per cent say they receive sufficient CEO support, vs. 80 per cent globally. 86 per cent have broader C-suite backing, vs. 79 per cent globally. 69 per cent were appointed internally, compared to 57 per cent globally. Their roles are broader and more strategic: 79 per cent control the AI budget (vs. 61 per cent globally). 62 per cent prioritise building business cases (vs. 45 per cent globally). 50 per cent oversee direct implementation of AI, in line with global peers. However, 38 per cent of UAE CAIOs find implementation 'very difficult', higher than the global average of 30 per cent. UAE CAIOs bring deep operational expertise: 69 per cent have a background in data, mirroring global figures. 48 per cent come from operations, compared to 38 per cent globally — reflecting an execution-oriented approach. Balancing experimentation with accountability While impact measurement is a priority, UAE CAIOs are not waiting for perfect metrics to act: 76 per cent say their organisation risks falling behind without measurement of AI impact (vs. 72 per cent globally). 74 per cent initiate AI projects even if results can't yet be fully measured (vs. 68 per cent globally). Room to scale Despite the leadership momentum, AI adoption maturity is still developing: 76 per cent of UAE organisations remain in the pilot stage, compared to 60 per cent globally — indicating significant growth potential in operationalising AI at scale. The study also reflects broader national goals. As part of the UAE's AI Strategy 2031, the country aims to become a global leader in artificial intelligence across sectors such as health, education, energy, and smart cities. This collaborative research from IBM and Dubai Future Foundation positions CAIOs as central to achieving that ambition. For more insights and to access the full study, visit:

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