Artificial Intelligence (AI) is all set be the game-changer for world economy, as per the latest study by PWC, it is projected that AI will add up to $15.7 trillion to the global economy in 2030. Of this, $6.6 trillion is likely to come from improved production, and $9.1 trillion is expected to come from customer benefits.
Amid the 4th industrial revolution, governments and companies across the Middle East are starting to see a global change towards AI and new technologies. They are confronted with the challenge of being part of, or being left behind in, a technical revolution. Looking at the economic effects for the country, it is not a choice to be left behind. The study predicts that the Middle East is projected to enjoy 2% of the potential global AI benefits by 2030. This is similar to that of the US $320 billion.
The most significant gains are anticipated to accrue to Saudi Arabia, where AI is expected to contribute more than US$135.2 billion to the economy in 2030, equal to 12.4% of GDP. In relative terms, the UAE is predicted to have the highest effect of approximately 14 percent of GDP in 2030.
The highest annual growth of the AI contribution will be in the UAE, followed by Saudi Arabia. Generally, the region's expected growth is estimated to be between 20-34% per year.
The scale of the projected effect in these two countries is predicted given their increasing investment in AI technology -both countries rank among the top 50 countries globally on the Global Innovation Index 2017 to adequately to innovate and their innovation performance.
Limitless opportunities are waiting
AI can radically transform economies in the Middle East by developing revolutionary new services and entirely new business models. We have now seen the effect of the first wave of digitalization. With the emergence of AI, some of the market leaders in ten or even five years may be businesses you've never heard of.
Today, if governments and companies are to nurture and mature AI to the fullest potential, there is so much more 'up to catch,' and countless possibilities await.
Beyond 2030, the scale of AI impacts both the economy and society will almost definitely expand. Hence, the Middle East needs to be strategically situated to have a gateway for the future.
Top industries for using AI
The scope for AI applications varies depending on the market. Analysis undertaken by the International Data Corporation (IDC) found that the most significant market for AI in the Middle East and Africa region is in the financial sector, where it is expected that 25 percent of all AI investment in the area forecasted for 2021, or $28.3 million, will be spent on developing AI solutions. This is followed by public services like education and healthcare and manufacturing.
The potential benefits will depend on two main factors: automation abilities and sectors that have many automation possibilities.
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