Saudi enterprises embrace AI, but challenges remain

Enterprises across Saudi Arabia are making significant progress in preparing for Business AI adoption, according to a YouGov survey commissioned by SAP. The survey assessed key factors for AI readiness, including cloud adoption, AI implementation levels, data quality, and staff expertise.

The findings, unveiled at the LEAP 2025 event in Riyadh, reveal that 75% of Saudi enterprises have already migrated their core business processes to the cloud, with an additional 22% planning to do so within 15 months. This means that by the end of next year, nearly 96% of enterprises will be running their key operations in the cloud.

Confidence in data quality is also high, with 64% of businesses rating their data as strong, while 32% expressed moderate confidence in their datasets.

Ahmed AlFaifi, Senior Vice President and Managing Director of SAP Middle East Africa – North, emphasized the benefits of cloud migration, stating, "Customers moving to the cloud immediately benefit from the cutting-edge Business AI infused in our cloud solutions."

Saudi enterprises are already leveraging AI across multiple functions, with customer service (45%) being the most common, followed by marketing and communications (42%), accounting and finance (41%), sales (41%), and human resources (36%).

However, challenges remain. The cost of AI adoption (51%), lack of skilled professionals (47%), integration with existing systems (42%), and privacy and security concerns (41%) were cited as the biggest obstacles to broader AI implementation.

Despite these hurdles, the survey underscores Saudi Arabia’s growing AI momentum, as businesses continue investing in cloud-driven solutions and AI-powered transformation.