UAE Leads Middle East AI Innovation with New Insights

A new white paper, Leveraging Actionable Gen AI in the Middle East, jointly released by MIT Sloan Management Review Middle East and Astra Tech, sheds light on the rapid integration of Artificial Intelligence (AI) technologies across the region. The report focuses on how businesses in the UAE and the wider Middle East are utilising Large Language Models (LLMs), Small Language Models (SLMs), and Large Action Models (LAMs) to enhance customer service, product development, and operational efficiencies.
The survey, which forms the backbone of the white paper, reveals that over half of respondents (53.25%) were from the UAE, underscoring the country’s leading role in adopting and applying AI technologies. Notably, 44.74% of UAE-based companies surveyed are using LLMs or SLMs to enhance customer interactions and personalise product offerings. These findings highlight the UAE’s commitment to positioning itself at the forefront of AI innovation.
Speaking about the report, Hassan Al Noon, Senior Vice President of Technology at Astra Tech, stated: “This white paper highlights the immense potential of AI in transforming industries across the Middle East. By gathering insights on best practices and user experiences tailored to the region’s unique cultural and regulatory environment, we ensure AI initiatives are impactful and sustainable. Localization is key, allowing us to address compliance needs and maximise the effectiveness of AI solutions.”
Ravi Raman, Publisher of MIT Sloan Management Review Middle East, echoed these sentiments. “This report serves as a vital resource for business leaders, technologists, and policymakers aiming to understand the transformative potential of advanced AI technologies. The insights it provides are invaluable for shaping strategies that harness the full power of AI.”
The survey data paints a vivid picture of AI’s growing prominence across the region. While 27% of businesses are actively exploring AI, 36% are in the early adoption phase, 13% have achieved deep integration, and another 13% are leading in innovative use cases. A further 9% are focused on monetising AI capabilities. In the UAE, AI is most commonly used for information retrieval (46%), customer service (33%), and personalised recommendations (13%), demonstrating its influence on user experiences and business operations alike.
Retail firms are particularly benefitting from AI, with LLMs, SLMs, and LAMs enabling personalised shopping experiences at scale. These models analyse purchase history and browsing behaviour to deliver tailored product recommendations, enhancing customer satisfaction and streamlining the shopping journey.
Amid growing concerns around data security and privacy, UAE-based companies are also developing in-house AI solutions, including bespoke language models that assist compliance officers with regulatory queries. This innovation underscores the region’s proactive approach to addressing challenges while driving AI adoption.
The findings demonstrate the UAE’s pivotal role in advancing AI technologies, solidifying the Middle East’s reputation as an emerging hub for AI innovation.