AI is powering Saudi Arabia’s Vision 2030 transformation

Artificial intelligence has emerged as a key component of Saudi Arabia’s post-oil economic development strategy, with the Kingdom leveraging the groundbreaking technology to propel industries driven by data and automation.

Now at the halfway point of Saudi Vision 2030, and as part of the initiative’s goals to lead global technology innovation, several key trends in AI adoption have emerged, with a clear focus on balancing plans with sustainability.

Over the past five years, Saudi Arabia has taken major strides in establishing itself as an AI powerhouse. AI is projected to contribute $235.2 billion — or 12.4 percent — to the Kingdom’s gross domestic product by 2030, according to PwC.

Moreover, key initiatives like the $100 billion Project Transcendence aim to position Saudi Arabia as a global hub for AI innovation.

The numbers speak for themselves. In addition to establishing the Saudi Data and AI Authority in 2019, which has spearheaded efforts to integrate AI into the public and private sectors, AI-related companies in Saudi Arabia raised more than $1.7 billion in funding last year.

The number of firms in Saudi Arabia focused on AI topped 240 in 2023, while AI patents have increased fivefold since 2019.

As Saudi Arabia advances its AI agenda across industries such as retail, construction, logistics, and smart cities, a wave of definitive AI trends is reshaping the landscape.

Five tangible trends driving AI adoption include generative AI for Arabic content, Arabic natural language processing (NLP), AI-driven business transformation, education and workforce development, and ethical AI and privacy.

Generative AI tools like OpenAI’s ChatGPT are helping businesses create localized content tailored to Arabic-speaking audiences, driving digital engagement across a multitude of sectors.

However, these tools often struggle with the complexities of Arabic dialects and slang, a challenge that local innovators like Lucidya have sought to address.

Developing in-house large language models that understand the nuances of Arabic is essential to unlocking the full potential of AI in key areas such as personalized marketing, social listening, and multilingual communication.

With just five years left to meet its 2030 goals, Saudi Arabia’s focus on personal agency, ethical governance, and innovation positions it as a rising AI leader.

Zuhair Khayyat

The advancement of Arabic-focused NLP is a cornerstone of Saudi Arabia’s AI strategy. These technologies are bridging language gaps in customer service, government applications and digital assistants, enhancing accessibility and efficiency for Arabic-speaking users.

Saudi Arabia’s ambition to develop ALLaM, the world’s leading Arabic large language model, highlights its determination to become a leader in this space.

Beyond language, businesses are recognizing AI’s ability to optimize operations and enhance competitive strategies.

A key consideration across the board for AI adoption remains return on investment. Businesses are taking note of the technology’s potential to optimize their models and further enhance competitive strategies.

One example is leveraging AI-powered tools to track consumer sentiment in real time and tailor marketing and customer journey strategies accordingly.

Progress here is on track. In 2024, some 42 percent of Saudi citizens used generative AI for scientific or professional purposes, according to SDAIA’s latest “State of AI in Saudi Arabia” report.

AI is also reshaping education and workforce development, aligning with Vision 2030’s goal of building a tech-savvy workforce ready for a digital future.

AI-powered platforms are personalizing learning experiences, equipping students and professionals with skills essential for what has been dubbed the “Fourth Industrial Revolution.”

Tech giants are taking notice and launching programs to bridge the knowledge gap.

One example is Oracle’s Mostaqbali (My Future) initiative, which is set to equip 50,000 Saudis with AI and emerging technology skills by 2027, supporting the Kingdom’s push for a tech-driven workforce.

Crucially, Saudi Arabia is setting global benchmarks in ethical AI practices. Ranked among the top three nations for AI ethics, the Kingdom prioritizes transparency, data security, and responsible governance.

Privacy-preserving technologies, such as zero-knowledge proofs and advanced cryptographic methods, are gaining traction in response to growing concerns over data protection. The Kingdom’s strong regulatory framework ensures compliance with strict privacy standards, fostering public trust in AI systems.

Looking ahead, AI agents have the potential to further improve industries as Saudi Arabia builds on its AI achievements. By automating operational procedures, predictive analytics and customer support, these intelligent solutions increase productivity and scalability.

Cisco’s AI Readiness Index, however, shows that only 22 percent of Saudi companies have highly scalable AI infrastructure, highlighting the necessity of further investment in personnel and technology.

With just five years left to meet its 2030 goals, Saudi Arabia’s focus on personal agency, ethical governance, and innovation positions it as a rising AI leader. Its approach, balancing rapid progress with sustainability, sets a model for nations navigating digital transformation.

• Zuhair Khayyat is the co-founder and chief technology officer of Lucidya, an AI-powered platform for customer experience management.