Saudi Arabia's AI Landscape: Opportunities and Challenges

Saudi Arabia Artificial Intelligence Industry Overview

The Saudi Arabia artificial intelligence market was valued at USD 3.11 billion in 2023 and is projected to grow at a CAGR of 42.6% between 2024 and 2030. An influx of investments in developing AI solutions and technology adoption across the financial, healthcare, manufacturing, and automotive sectors will bring a paradigm shift in the regional landscape. The penetration of the 4th Industrial Revolution and robust policies from governments and businesses have encouraged stakeholders to inject funds into the GCC country.

Gather more insights about the market drivers, restrains and growth of the Saudi Arabia Artificial Intelligence Market

The rising penetration of 5G networks across the end-use industries has boded well for the industry outlook. Moreover, the trend for data-based AI solutions has put the Middle Eastern country in a favorable position. Predominantly, the Saudi Arabian government has injected funds into the technology, combining AI and data into major domains. Amidst rapid urbanization, investments in technology could be pronounced in the ensuing period.

Labor-intensive sectors, including healthcare and retail, are likely to depict strong demand for automation. Predominantly, investments in non-oil sectors could position the GCC country in a lucrative position. For instance, retail companies have sought AI to gain consumer insights and inform about promotions and pricing. As the world moves towards AI, stakeholders are likely to unravel opportunities to gain a competitive edge.

 Key Saudi Arabia Artificial Intelligence Company Insights

Some of the leading players operating in the market include IBM, Google LLC, Amazon, Advanced Micro Devices and Baidu, Inc. They are likely to focus on organic and inorganic strategies to underpin their strategies in the regional landscape.

• In March 2024, IBM announced its contemplation to pour more than USD 200 million in talent and infrastructure into a new software lab in Riyadh. The lab is expected to be in line with Saudi Arabia’s strategic Vision 2030.

• In March 2024, Amazon’s AWS announced plans to inject USD 5.3 billion into data centers in Saudi Arabia by 2026, alongside Microsoft and Google-parent Alphabet.

• In November 2022, Google Cloud rolled out the center of excellence in Saudi Arabia to boost in-demand skills. The training courses would include AI and ML, while the center will provide various cohorts throughout the year.

Order a free sample PDF of the Saudi Arabia Artificial Intelligence Market Study, published by Grand View Research.

Recent Developments

• In January 2024, Intel collaborated with Aramco Digital to establish Saudi Arabia’s inaugural Open RAN (radio access network) Development Center. The two behemoths are developing private 5G (for the industrial sector) to foster digital transformation in the Kingdom.

• In November 2023, Microsoft CEO Satya Nadella asserted that Saudi companies’ efforts toward AI had fueled innovation, bolstered their productivity, and created new economic opportunities. The Chairman exhorted that speech-to-text solutions have been helping clinicians at King Faisal Hospital to minimize documentation errors, bolster their productivity, and spend more time with patients.