Hyundai Motor Group
The increased adoption of artificial intelligence (AI) has undoubtedly been one of the most exciting technological developments of the 2020s.
Gulf Cooperation Council (GCC) nations are championing AI. Countries such as Kuwait want to diversify their economies and AI is the perfect tool to pivot from oil reliance.
However, supporters and stakeholders cannot get too excited about potential opportunities as Kuwait has not laid out clear laws regarding AI regulations.
A dearth of top-class talents is also impacting progress, while other limiting cultural considerations complicate matters. However, recent developments could change the landscape.
The Kuwait government, represented by the Central Agency for Information Technology (CAIT) and the Communication and Information Technology Regulatory Authority (CITRA), recently announced an exciting partnership with Microsoft that bolsters its bid to be at the forefront of AI.
This is one of the developments in the pipeline that aids the push to become a leading digital economy under the Kuwait Vision 2035.
The move benefits all parties as Microsoft will help Kuwait become a renowned AI centre that attracts investment while the technology giant spreads its wings in the Middle East.
Microsoft is set to build an AI-based Azure Region in Kuwait, giving businesses cloud services to drive AI innovation. This cloud infrastructure helps local enterprises employ AI solutions to improve efficiency in the public and private sectors.
Microsoft will establish an AI Innovation Centre and a Cloud Centre of Excellence, hubs that will equip start-ups and businesses with tools to become more efficient and profitable.
These initiatives also encourage industry giants, academic experts and technology professionals to map out an AI ecosystem that the rest of the world looks to.
As part of this partnership, the Kuwaiti government will employ Microsoft 365 Copilot to automate and reduce arduous processes. With AI, governments can deliver better services to indigenes without frustrating administrative bottlenecks.
Microsoft will also implement their Cybersphere initiative in Kuwait, fortifying national cybersecurity and ensuring that citizen data and taxes are safe from cyber threats.
Microsoft can build AI training programs that provide young Kuwaitis with the technical skills to thrive in an AI-fuelled job market.
One of the more complex discussions surrounding AI in Kuwait is its impact on the regulatory policies of other sectors, such as gambling.
AI can power analytics and responsible gaming technologies that give governments more control and oversight over gambling operators, forcing lawmakers to rethink their stance on a thriving gambling industry.
Regulating physical and online casinos in Kuwait would boost the economy through taxation revenues. The government could consider releasing the brakes and allowing trusted operators ready to comply with the strictest of regulatory standards if they have access to AI-driven risk assessment and fraud detection measures.
The government can use AI tools to monitor transactions and embed responsible gaming measures to combat any issues. Kuwait might start reconsidering its stance on gaming if AI powers a more data-led and controlled approach.
According to a recent McKinsey report, generative AI (Gen AI) could contribute up to $35 billion annually to GCC economies, adding to the $150bn global AI market.
This massive sum is only a small percentage of the non-oil gross domestic product (GDP), but it is a start as they look to diversify their economies and wean off crude revenues.
Investing in AI will help GCC nations boost and expand other lucrative sectors such as finance, healthcare, logistics, entertainment and tourism.
The world is gradually gravitating from fossil fuels towards more green and sustainable energies. Middle Eastern nations need to prepare themselves for this shift.
Intriguingly, several countries and businesses have adopted AI, but only a few have monetised it, earning around five percent of their profits from AI initiatives.
These value achievers succeeded by combining AI integration, investing in talent and infrastructure, and proactive risk management.
Unfortunately, deploying AI across GCC nations won’t be so straightforward. Firstly, the Middle East isn’t exactly buzzing with talents in AI, which has slowed innovation.
AI works with reliable, high-quality data. This form of structured information is not readily available. Many businesses don’t have the necessary data that AI needs to improve their organisational efficiency.
Meanwhile, the fact that governments keep taking their time to define their AI frameworks creates an unhealthy uncertainty for businesses.
Companies cannot wholeheartedly embrace AI and commit investment into a technology when unsure what policies and guidelines will rule the sector.
Another area where AI has a problem is its impact on employment, with many people fearing the technology can displace workers in traditional industries. In fairness, GCC countries have started preparing workers by educating and training them for the future.
