The Gulf Cooperation Council (GCC) region is setting a global benchmark in generative artificial intelligence (GenAI) adoption, with the technology poised to add up to $35 billion per year to GCC economies, representing approximately 2.3% of the region’s GDP, according to a new McKinsey report. This figure is in addition to the $150 billion potential contribution from other AI technologies, showcasing AI’s transformative impact across the region.
The report highlights that GCC businesses are adopting GenAI tools, such as ChatGPT, at a significantly higher rate than the global average. Within the surveyed businesses, 75% indicated they have implemented GenAI in at least one area of their operations, compared to 65% of businesses worldwide. Moreover, 57% of GCC businesses reported dedicating over 5% of their digital budgets to AI, a stark contrast to 33% globally.
Karan Soni, Associate Partner at McKinsey, emphasized that while GenAI currently mimics human tasks, artificial general intelligence (AGI)—technology capable of surpassing human intelligence—remains on the horizon as the “next frontier.” Though not yet available, AGI is expected to open new doors in the AI landscape once realized.
Addressing concerns around AI’s impact on employment, Soni noted that past technological advancements, like the Industrial Revolution and the internet, ultimately led to job creation. He suggested that while AI adoption will require workforce reskilling and retraining, fears of significant job displacement may be overstated. Soni stressed that emerging technology usually leads to net job growth, as new roles are created to manage, optimize, and innovate within these advancements.
In the GCC, proactive measures in AI regulation and data management are already underway. Both the UAE and Saudi Arabia have established robust data governance laws and invested in early infrastructure to address data sovereignty concerns. Saudi Arabia has prioritized keeping sensitive data, such as oil and gas information, within the nation, a stance reinforced by recent data center investments from Amazon and Microsoft.
With strong governmental support and forward-looking policies, the GCC is not only leading in GenAI adoption but also positioning itself as a global hub for AI innovation and governance.
