Dell Research: AI Momentum in UAE Boosts Skills and Scale

New research from Dell Technologies shows that businesses in the United Arab Emirates (UAE) are increasingly viewing artificial intelligence (AI) as a strategic priority. The global State of Innovation and AI Survey study – which surveyed 2,850 business and IT decision-makers, of which 50 were from the UAE – found that 92% of the surveyed UAE companies now view it as a ‘key part’ of their business strategy. Additionally, 88% of UAE organizations report seeing tangible productivity and financial returns from initial AI investments.

Driving AI Adoption in the UAE

1. Data Readiness Leads the Way: 64% of UAE organizations are prioritizing "data readiness for AI" as a top IT initiative, signaling a strong focus on the foundational infrastructure required to support AI’s potential.

2. On-Premises AI is on the Rise: 74% of businesses plan to consume AI through software and run it locally on AI PCs over the next 12 months, reflecting a shift toward localized AI deployment to address data sovereignty and compliance concerns.

3. AI as the Sustainability Catalyst: 92% of UAE companies recognize AI’s critical role in optimizing resource use and improving sustainability, driving efforts in energy efficiency, smarter data center management, and circular IT practices.

Why It Matters

Despite these promising indicators, 78% of businesses in the UAE struggle to fully integrate AI into every aspect of their operations, while 30% are still in the early-to-mid stages of their AI adoption journey. Challenges such as data security concerns, lack of executive/senior management buy-in, and integration with existing systems/infrastructure continue to hinder large-scale implementation.

The research highlights that while UAE companies are making strides toward AI adoption, scaling AI effectively across an enterprise requires a holistic approach. Building infrastructure that supports AI, fostering new skillsets, and prioritizing secure and ethical practices are key.

Barriers to AI Implementation

While the interest in AI continues to grow, progress is hindered by three persistent challenges:

4. Skills Gap: Alarmingly, all respondents (100%) of the UAE companies surveyed believe their teams lack the necessary skills to fully leverage AI. This marks a sharp increase in concerns compared to previous years, especially surrounding the safe implementation of GenAI, an area where 66% of the UAE organizations report insufficient knowledge.

5. Security Concerns: The pressure to innovate is often tempered by increasing worries about security risks. 72% of the UAE companies expressed fears about exposing sensitive corporate data and intellectual property to third-party AI tools, a significant rise from 64% last year. Additionally, 80% of the organizations highlight that it is a challenge to find a balance between innovation and mitigating cybersecurity risks.

6. Infrastructure Readiness: Many companies find their current IT environments inadequate for the demands of AI workloads. Challenges include increasing processing power (e.g. CPUs/GPUs), implementing AI-optimized hardware, and enhancing data security. Without addressing these issues, AI integration efforts will continue to face delays.

Aligning AI Innovation with Sustainability Goals

An encouraging trend revealed in the report is the increasing link between AI and sustainability goals. Businesses are exploring AI’s potential to optimize energy efficiency – such as smarter data center management, minimizing idle workloads and moving inferencing tasks to edge computing environments. Organizations in the UAE are increasingly leaning on third-party collaborations to integrate sustainable practices, with 82% highlighting the importance of external collaboration in achieving circular IT solutions. This trend signals an emerging ecosystem of shared expertise to tackle the complexities of implementing both AI and sustainability strategies. From advanced cooling solutions to energy-aware AI architectures, Dell Technologies is helping organizations reduce their environmental impact with AI infrastructure that balances performance with energy efficiency.

Walid Yehia, Managing Director, South Gulf at Dell Technologies:

“The State of Innovation and AI Survey reflects a powerful shift in how UAE businesses are embracing AI to drive innovation and growth. Organizations are moving beyond piloting AI and are instead beginning to embed it at the core of their strategies. This transition underscores the transformative potential of AI, but achieving its full impact will require addressing critical challenges, from workforce upskilling to secure and collaborative implementation.”