The AI Tsunami Is Coming: Are UAE Businesses Ready?
The technological upgrade we are witnessing will lead us to a fundamental reimagining of how businesses operate, think, and create value.
Over the decades, I've witnessed the business world transform in ways few could have predicted. From the inception of the internet to the explosion of social media, each technological leap has redefined corporate strategies and operations.
Yet, none will compare to the coming wave of artificial intelligence (AI) – a tsunami set to overshadow all that came before it. UAE business leaders pride themselves on staying ahead of global trends. It's true, we have been quick to adapt to technological shifts. But this time, the transformation happening in front of our eyes is different.
The technological upgrade we are witnessing will lead us to a fundamental reimagining of how businesses operate, think, and create value. Will UAE businesses be able to keep up with it?
In my experience, it's not always the strongest companies that survive, but the most adaptable. Companies in the UAE must prepare for the greatest adaptability test that this generation has witnessed.
More Than What Meets The Eye
The current state of AI, while impressive, is not the full story. Sure, you can ask a chatbot to draft a reply to your email, or ask it about the capital of a country as you prepare for quiz night. But this has given us a false sense of what AI is.
Early automobiles were called "horseless carriages," because we could only understand automobiles in terms of what we already knew. Are we making the same mistake with AI, limiting our imagination to "computer programs that we can chat with"?
As someone who's launched multiple tech ventures, I've learned to look beyond the immediate horizon. The questions keeping me up at night aren't just about which businesses will succeed or what skills will be in demand – they are about how new technologies like AI will rewrite the entire equation of value creation in business.
According to PwC’s latest research, AI could add up to US$15.7 trillion to the global economy by 2030 – that’s more than the current output of China and India combined. According to an Oxford University study, AI may automate up to 47 percent of existing jobs by the early 2030s. The World Economic Forum estimates that 65 percent of children entering primary school today will ultimately end up working in job types that don't even exist yet.
Get Ready For The Five Levels Of AI
According to insider info shared with Bloomberg, San Francisco-headquartered OpenAI –the company behind the now ubiquitous AI tool, ChatGPT – has a roadmap for five levels of AI development. Level One is the AI we have today – it’s really good at specific tasks like answering queries, recognizing faces, or translating languages, but not exactly well-rounded.
Level Two is where AI can handle complex thinking tasks, much like humans can; it's a big step up. In July, Sam Altman, the CEO of OpenAI, hinted that his company might be close to Level Two AI. Since then, the company has released "o1 preview," a preliminary version of the upcoming o1 model, which showcases enhanced capabilities in reasoning, problem-solving, and adaptability across diverse tasks, signaling a major advancement toward more autonomous and sophisticated AI applications.
Level Three is when AI can match wits with the smartest humans in any field. And Level Four is when AI doesn't just think, but comes up with groundbreaking ideas nonstop. And Level Five? That's the point where AI outsmarts humans in every way imaginable. This is the level where AI can do the “work of organizations.”
Here's a thought experiment: imagine explaining your smartphone to someone from 1850. Now imagine trying to explain Level Five AI to ourselves today. That's the magnitude of change we're discussing.
The Business Imperative
For UAE organizations standing at this technological crossroads, each advancing level of AI represents a fundamental paradigm shift in how we conceptualize business itself. The transformation will be profound and far-reaching, touching every aspect of our operations, from the trading floors of the Dubai International Financial Centre (DIFC) to the manufacturing plants of Khalifa Economic Zones Abu Dhabi (KEZAD).
As we progress through these AI levels, we will witness an unprecedented reshaping of organizational DNA. Routine cognitive tasks, from financial analysis to supply chain management, will be increasingly automated, allowing our workforce to focus on what humans do best: strategic thinking, emotional intelligence, and creative problem-solving. If you’re a CEO, this is the time to be thinking ahead, and how you would prepare for these incoming changes.
So, what steps can UAE business leaders take today? First, invest in AI literacy across your organization. Encourage your teams to understand not just what AI is, but how it can be applied in your specific industry. Second, consider partnerships with AI startups or tech firms to pilot AI initiatives. For instance, UAE flag carrier Emirates has successfully integrated AI to enhance customer service, while global payments leader Mastercard is employing AI for fraud detection. These examples illustrate the tangible benefits of early adoption.
Decision-making in our boardrooms will become exponentially more sophisticated, powered by AI systems that can process vast amounts of data without human bias. Innovation cycles that once took years will be compressed into months or even weeks.
However, this transformation is not without its challenges. Regulatory hurdles, data privacy concerns, and a shortage of skilled talent are significant barriers. To bridge the gap between intention and action, businesses must develop comprehensive strategies that address these issues. Implementing robust data governance policies, investing in employee reskilling programs, and fostering a culture that embraces change are essential steps forward.
Rising Up To The Challenge
While 87 percent of executives expect job roles to be augmented by generative AI, only 35 percent have actually implemented comprehensive reskilling initiatives.
For UAE business leaders, this transformation demands a fundamental rethinking of how we structure our organizations. We must become architects of a new kind of workplace – one where humans and AI systems work in seamless collaboration. This means redesigning workflows, redefining job roles, and most importantly, fostering a culture of continuous learning and adaptation.
The winners in this new landscape will be organizations that can strike the perfect balance between human insight and AI capability. The organizations that move quickly to integrate AI into their operations will gain unprecedented abilities to automate processes, enhance decision-making, and deliver personalized experiences at scale.
But here's the crucial point: being an AI pioneer isn't just about writing checks for new technology. It requires the courage to reimagine entire business models, the agility to learn and adapt rapidly, and the wisdom to navigate the complex ethical and cultural implications of AI integration.
Ethical considerations cannot be overlooked. Issues such as algorithmic bias, job displacement, and the ethical use of data are critical. Businesses must ensure that their AI systems are transparent, fair, and accountable. For example, implementing AI ethically means actively working to eliminate biases in algorithms that could unfairly impact certain groups.
This is particularly relevant in our unique cultural context, where traditional values meet cutting-edge innovation. UAE businesses have an opportunity to demonstrate how AI can be deployed in a way that respects and enhances our cultural heritage while driving economic progress.
The AI revolution is not a distant future – it’s unfolding now. The choices made today will determine success in the years to come. I urge business leaders to take immediate action: educate their teams, invest in AI initiatives, and rethink their business models.
About The Author
Jigar Sagar is a serial entrepreneur who’s the founder of Triliv, a UAE-based family office that focuses on managing and growing wealth through sophisticated investment strategies.