Saudi Arabia’s business environment is changing dynamically as AI adoption increases
RIYADH: Saudi Arabia's business environment has seen dramatic changes in recent years, as employers consider artificial intelligence an important tool for their operations.
With major technology events like LEAP taking place in the Kingdom, business owners and employees in the region are recognizing the need to improve their AI-related work proficiency to drive growth.
Rami Mourtada, partner and director at Boston Consulting Group, said in an interview with Arab News that Saudi businesses need to urgently set the AI agenda and prepare to adapt to this dynamic evolution. Told.

Rami Mourtada
“Transformative AI adoption in Saudi Arabia cannot happen without proper business adoption. “We need to pilot use cases and properly engage organizations in this change,” he said. Murtada.
He added: “As business leaders move forward on this journey, they look to companies like LEAP to learn from the experiences of other companies, collaborate with experts to refine their agendas, and get new ideas for use cases to experiment with. “The event is important,” he added.
Bridging the AI gap between employers and employees
A new report from US-based management consulting firm Oliver Wyman reveals that Saudi Arabia and the entire Middle East region have invested heavily in national AI strategies in recent years, and the approach is paying off. .
The survey reveals that young people in the Kingdom born between 1997 and 2010 are already aware of the benefits of this new technology, with more than half recognizing the benefits that AI can bring to productivity. became.
Ana Creacic, chief knowledge officer at Oliver Wyman, said bridging the gap between employers and employees is necessary to ensure a smooth adoption of AI in enterprises. Ta.

Ana Kreacic
“Currently, there is a wide gap between employers and employees. CEOs are recognizing the potential of AI and are looking to increase productivity, streamline operations, or gain a competitive advantage. Many companies are already redesigning work, but they are underestimating many aspects of technology,” Kreacic said.
Additionally, “Companies must develop a shared mission for AI adoption, not just to improve business productivity, but also how the technology will impact workers and their roles.” Business Leaders now need to prioritize ways to motivate, develop, train, and alleviate anxiety among young employees. ”
Oliver Wyman's analysis reveals that around 57% of employees surveyed in Saudi Arabia say their companies provide insufficient training on AI, while 40% are struggling to adapt to change. emphasized the need for peer-to-peer mentoring programs.
“There is a lack of understanding and trust in how AI will impact work and how companies plan to support their employees through the transition to AI. should communicate regularly with employees about their plans, provide clear guidelines, and reinforce ongoing AI skill building and training,” said Kreacic.
He further emphasized that business leaders should prioritize motivating and training younger employees, which will ultimately reduce anxiety around technology adoption.
“Most AI-enabled tools are continually improving, which means employees don't just have to learn how to use these tools once, they continue to learn new things as they use the tools over time. This is one of the reasons why our employees ranked AI as their top priority for retraining, unlike most technologies we have worked with before,” Kreacic told Arab News. Told.
Kreacic added that companies also need to focus on digital training for Gen Z individuals born between the mid-1990s and mid-2010s, who may have computer training and knowledge but lack the skills needed for AI. It pointed out.
“Companies also need to help develop soft skills, which will become even more important as AI eliminates repetitive roles. “They are spending less time in the office and have not yet mastered the skills that older generations learned working alongside their senior colleagues,” she added.
The power to accelerate AI adoption by reducing anxiety
Although the introduction of AI will increase productivity for companies, a majority of workers are concerned that this trend will negatively impact their job security.
“Public employees are increasingly concerned about the impact AI will have on their job security, especially as AI adoption increases. BCG research shows that the optimal setting, one that minimizes the risk of bias and error, is for humans to serve as key checkpoints for the AI-transformed process. ,” Mourtada said.
He added: “Employees need to first encourage their employers to adopt this hybrid approach and then work on it to reap the benefits directly.”
An Oliver Wyman survey found that 69 percent of young Saudi Arabians are concerned about the impact of AI on their job security, while 59 percent of older adults are worried.
According to the report, senior employees may feel more secure about their careers because they believe AI will have less of an impact on higher-level employment.
“That concern is already impacting talent retention. 24% of Gen Z in Saudi Arabia are looking for other jobs that are more secure in the AI transition, compared to 14% globally,” Kreacic said. he said.
Furthermore, she added: “Businesses and governments must clearly and regularly communicate how generative AI will impact work, which activities will be replaced, enhanced, or transformed, and how they plan to support their workforce. By communicating, you can address these fears and deter employees from needlessly fleeing the transition. ”
According to Kreacic, companies need to create a shared mission around AI adoption, not just about improving business productivity, but also about how the technology will impact employees and their roles.
“As companies become more reliant on AI technology, young workers may feel less and less connected to their companies, so fostering a sense of belonging in young workers will help them make the most of their time at work.” “It is important to enable people to reach their full potential,” she told Arab News. .
