Middle East Council leads UK and US on AI governance plan

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RIYADH: Boards in the Middle East are among the world’s most forward-thinking when it comes to artificial intelligence, according to a survey of more than 400 business executives.

The research, published in Board Intelligence’s Summer 2026 Board Value Index, shows that Saudi Arabia is particularly advanced in its commitment to AI governance, with 68% of the country’s directors actively considering whether to maintain human- or AI-driven decision-making.

A further 26% are already discussing the issue at board level, meaning virtually all Saudi boards surveyed are grappling with the governance implications of AI.

The report, based on responses from non-executive directors, CEOs and chief financial officers of organizations in the UK, US, Nordic countries and the Middle East, found that 42% of directors in the Middle East believe their boards are an essential tool for value creation, the highest proportion of the four regions surveyed.

The findings come after another PwC study found that 70% of CEOs in the Middle East have a clearly defined roadmap for their AI initiatives, and around 59% have formalized responsible AI and risk processes.

Pippa Begg, CEO and co-founder of Board Intelligence, said Middle East boards operate in one of the world’s most dynamic economic environments.

He added: “Our research shows that Middle East boards are among the most progressive in the world and are leading many conversations around AI governance and future preparedness.

“This reflects the broader transformation taking place across the region, with governments and organizations making significant investments in artificial intelligence, digital capabilities and future industries.

“As organizations continue to evolve, boards need access to the right expertise, information and decision-making frameworks to support quality discussions and effective decision-making.”

Some 86% of those surveyed said their boards enable innovation, and 58% reported considering which decisions should be left to humans and which should be assigned to AI.

34% of respondents identified skills and subject matter expertise as the main regional barrier to better board decision-making.

Four out of five directors in the Middle East said they had made at least one late, rushed or poor decision in the past six months due to a skills gap.

“Boards are being forced to face fundamental questions: where does human judgment end and where does AI begin? Yet, many boards find that their governance structures and decision-making processes are struggling to keep up with the scale and speed of change,” Begg said.

According to the World Economic Forum’s 2025 Future of Work Report, 39 percent of workers’ core skills are expected to change by 2030.

It identified the skills gap as a key barrier to business transformation and said demand for expertise in AI, big data and cybersecurity is expected to grow rapidly.

“Boards of the future will need to be more digitally literate, diverse, data-informed and more comfortable operating in ambiguity,” said Raja Al Mazrouei, CEO of Etihad Credit Insurance and member of the Board Intelligence Advisory Committee, adding: “There is an opportunity in the region to leapfrog traditional governance models and redesign governance around agility, intelligence and strategic oversight.”

The Board Value Index also found that Middle Eastern directors are more likely than international directors to view emerging technologies as strategic opportunities. Approximately 30% of boards say they primarily discuss quantum computing as an opportunity, compared to 24% globally.

However, 41% of respondents in the Middle East viewed quantum computing primarily in terms of security risks.

The report states that while this technology could threaten existing encryption and cybersecurity infrastructure, it could also create a potential competitive advantage.

Despite widespread support for innovation, only 22% of directors in the Middle East say their boards are a strong enabler of innovation. Boards were most likely to contribute through decisions about the allocation of capital, talent, and partnerships rather than helping management identify new opportunities.

Succession planning remained a concern. 64% of directors across the Middle East said their organizations need to develop internal talent or find talent from outside the company before appointing a replacement CEO.



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