Al-Khobar: For many Gulf companies, artificial intelligence solutions are not catching up because of technology weaknesses, but because corporate leaders are too afraid to adopt these tools perfectly.
In the boardrooms across the region, executives are pitching fully functional AI prototypes. But in many cases the boards get hesitant. Ask if the system is too dangerous. Another is wondering about the audit reveal.
result? Delays, confusion, abandoned innovation.
Two recent reports reflect this challenge. A survey by McKinsey in January 2025 found that while almost every company invests in AI, only 1% consider themselves truly mature, citing their reluctance to leadership and lack of risk preparation as a critical barrier.
Similarly, HFS research highlights that companies often get caught up in “pilot purgatory” because they did not expand AI beyond internal innovation blockers and proof-of-concept demonstrations.
This became a familiar event and the main reason why AI conversions are stuck in “pilot mode,” according to Yousef Khalili, Global Chief Transformation Director for AI Solutions Company Quant.
“AI has not failed because of technology,” he told Arab News. “It's failing because the board is scary, the team is confused and no one agrees about what success looks like.”
Khalili has been taking on his previous roles at Cisco, Microsoft, and the Saudi National Digitalization Strategy Committee to help lead digital transformation across the Gulf. His perspective is shaped by the years in the boardroom.
On the surface, businesses point to concerns such as data privacy, integration challenges and workforce disruptions. However, Kariri believes that the underlying causes are more complicated. It's organizational culture.
He explains that many senior leaders still view AI as an experimental concept rather than a strategic enabler. In strict corporate hierarchies, acknowledging knowledge gaps can be a sense of threat. That discomfort leads to silence, delay, or rejection.
“Lecturers are afraid of decisions made by machines,” he said. “It's also an existential problem. AI can reveal inefficiencies and old business models and practices. It's not just a fear of confusion, but also an unrelated fear.”
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In this environment, even if the tool works, it will not be implemented. Not because they fail technically, but because they don't feel safe enough for the powerful to defend it.
Khalili is urging businesses to rethink how they present AI not as a machine alternative for human judgment, but as a tool to enhance it.
He believes that transformation will only be successful if an organization redefines the role of AI within its leadership structure. Shifts need to be driven from above rather than being left to the IT department or external consultants.
This is particularly urgent in the Gulf, where national ambitions for AI are moving faster than private sector adoption.
“What's more needed is a redefine AI as a tool that provides humans with a way to lead,” Kariri said.
Instead of pitching AI as a cost cutter or an automation shortcut, Khalili recommends linking it to strengthening leadership.
For internal change to take root, Kariri says CEOs must model a new kind of leadership.
He outlines three important traits for modern leaders navigating the transformation of AI: empathy, inclusivity, and education.
Often, the lack of these qualities leads to internal pushback. Employees are afraid of being replaced. Managers fear that they will become obsolete. And without reassurance, resistance is built.
“Internal resistance can be caused by the fear of redundancy,” he said. “Leaders should emphasize the role of AI as a supplementary tool rather than exchange.”
Khalili argues that true transformation occurs when a team feels not only involved in the AI journey, but also includes the team.
While executive teams often lead digital discussions, Karili says it is the executive office that will ultimately decide whether or not the project will expand.
When the board treats AI as an isolated technology trend rather than a governance issue, efforts remain small and fragmented. The project never reaches maturity. The pilot does not scale. Worse, companies lose their position to faster, bolder competitors.
“If we are not involved with the board, we could turn our efforts into a series of pilots that cannot be expanded,” warned Kariri. “The board must mandate AI literacy across the organization, not just the technical team.”
He says the board should see itself not only as a gatekeeper of compliance, but as an innovation steward. If they're not moving forward with AI, they're holding the company down.
Many companies hesitate to expand their AI because they don't see an immediate return on investment. However, Kariri says this idea is outdated, especially when measuring transformations.
In his view, success should be measured by a broad set of metrics of recruitment, decision speed, employee engagement, improved accuracy, and savings.
These “early indicators” are often more useful in determining whether the system is working than short-term financial returns.
“A better view is provided by a balanced scorecard approach,” he said. “Leadership must see AI as infrastructure. This means that, with careful investments, returns are progressive and not immediate.”
Khalili believes these metrics should not only be hidden in updates, but also become part of all boardroom dashboards.
Despite hesitation in some sectors, Karili says Saudi Arabia is in a better position than most people.
Thanks to Vision 2030, the country has already made AI a strategic priority. With its investment in talent, regulation, and digital infrastructure, both the public and private sectors provide a strong foundation.
And unlike other regions where policies often fall behind innovation, Kariri sees opposition in the kingdom.
“Top-down commitment within Saudi Arabia's leadership is a unique advantage,” he said. “Vision 2030 and the cultural changes it promotes will help us overcome barriers faster than in other regions.”
However, private companies need to align government ambitions more closely with the idea of risk-taking, experimentation and long-term impact.
When asked what actually holds AI back in the Gulf Coast, Khalili doesn't hesitate. It's not a tool. It's not an infrastructure. It's culture.
For AI to succeed, organizations need to prioritize internal literacy, build inclusive leadership, and rethink their success. And most of all, they have to stop waiting for certainty.
“Think of AI as a fundamental ability, not an peripheral ability,” he said. “AI pilots cannot ensure that they deliver the value of the entire company without first addressing the organizational culture.”
