UAE study shows 42% of institutions classified as ‘AI leaders’

The United Arab Emirates has consolidated its position as one of the world’s leading countries in artificial intelligence adoption, with 42% of business institutions classified as “AI Leaders,” according to a study by Boston Consulting Group cited by the state-run Emirates News Agency.

The study said UAE institutions are keeping pace with global counterparts and showing strong progress in deploying advanced technologies.

Titled “Unlocking Potential: How GCC Organizations Can Convert AI Momentum into Sustainable Value at Scale,” the report surveyed 200 senior executives and assessed 41 digital capabilities across seven sectors.

It found that 37% of institutions in the UAE have reached the “scaling” stage of digital maturity, marking a shift from limited pilot projects to broader implementation. The UAE recorded an average digital maturity score of 46 points, the highest in the region, while 13% of institutions were classified as lagging.

Dr Lars Littig, managing director and partner and Middle East leader of BCG’s Tech & Digital Advantage practice, said the UAE’s progress reflects strategic infrastructure investments and commitment to the UAE Artificial Intelligence Strategy 2031, according to WAM.

He said institutions across the Gulf Cooperation Council, including those in the UAE, are achieving higher returns through AI adoption as public and private sector investments translate into measurable value.

BCG said institutions classified as AI Leaders in the GCC deliver 1.7 times higher total shareholder returns and 1.5 times higher operating profit margins than slower adopters, highlighting the financial impact of advanced AI deployment.

At the regional level, the study said GCC countries have narrowed the gap with global markets. It found that 39% of organizations in the region are now classified as AI Leaders, compared with a global average of 40%.

The report also highlighted the role of the public sector in driving AI adoption in the GCC. It said the region’s public sector achieved the highest AI maturity levels globally among all markets included in the study, reflecting what BCG described as a transformation in how institutions approach technology.

The study added that 38% of GCC institutions have begun testing advanced “agentic AI” applications, pointing to continued experimentation with emerging AI technologies across the region.