AI-as-a-Catalyst for Digital Transformation: Unlocking the next frontier of innovation in the Middle East

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AI-as-a-Catalyst for Digital Transformation: Unlocking the next frontier of innovation in the Middle East

Across the Middle East, national AI strategies are being implemented to spur innovation and diversify economies in countries like UAE and Saudi Arabia. Leveraging the momentum, e& enterprise is rising to meet the needs of its public and private sector partners, sparking new efficiencies and solutions anchored in AI. Intelligent CXO spoke to Salvador Anglada, CEO, e& enterprise, about AI and how this technology is driving Digital Transformation in the region.

From the algorithms that personalise our recommendations to the automated customer support we receive, AI is reshaping industries and sweeping societies at an unprecedented pace. It’s a powerful tool for problem-solving and innovation, a source of both great promise and sizable challenges and a major driver of economic growth and technological advancement.

The Middle East and Africa (MEA) – where IDC projections predict AI spending to skyrocket to US$6.4 billion by 2026 – is emerging as a major player in the global AI ecosystem thanks to its progressive regulatory stance, which has created the ideal conditions for innovation.

Salvador Anglada, CEO of e& enterprise, the Digital Transformation arm of the global technology group, e&, sees the region’s surge of investment in AI as a tremendous opportunity for growth and innovation. “The future of the Middle East is closely intertwined with AI. Embracing this technology and investing in its development is fuelling innovation across industries and positioning the region as a global leader. Our company is dedicated to supporting this transformation through cutting-edge AI solutions and a commitment to innovation and partnerships.”

McKinsey suggests that AI could generate substantial economic value in the Gulf Cooperation Council (GCC) countries, contributing up to US$150 billion to the region’s GDP (that’s 9% or more of its total economic output); it’s no wonder companies are seeking to leverage the transformative potential of AI.

Navigating business transformation

As companies go all in on harnessing emerging technologies to reinvent themselves and adapt to the rapidly changing market dynamics, e& enterprise serves as a trusted partner, helping them streamline operations, enhance customer experiences and drive profitability. Anglada identifies the key digital capabilities that enable transformation — cloud computing, the Internet-of-Things (IoT), Big Data and AI and Robotic Process Automation (RPA).

“Cloud computing brings scalability, cost-efficiency and flexibility to the technology mix, while IoT enables real-time monitoring and predictive maintenance,” he outlines. “Big Data and AI provide valuable insights for informed decision-making and personalised customer experiences. RPA automates repetitive tasks, improving productivity and freeing up resources for strategic initiatives. By leveraging these digital capabilities, companies can position themselves for long-term success in today’s competitive market.”

e& enterprise’s recent acquisition of GlassHouse, a Türkiye-based provider of managed cloud, Business Continuity and SAP Infrastructure services, offers a bold statement about its strategic commitment to strengthening its Digital Transformation capabilities. GlassHouse is building advanced private cloud solutions specifically designed to meet the evolving demands of the financial services sector – where regulatory compliance, data security and operational efficiency are paramount. These capabilities will enable e& enterprise to offer enhanced, secure and scalable cloud solutions, further solidifying its leadership in advancing Digital Transformation across key markets.

However, successful Digital Transformation requires addressing a range of challenges. Anglada outlines the importance of a comprehensive approach that accounts for the technological and organisational aspects of Digital Transformation.

“A key strength in the Middle East’s digital journey is its rich cultural and market diversity. Each country’s unique customs, languages and consumer preferences present exciting opportunities to craft tailored solutions that meet local needs. However, bridging the digital divide remains a critical challenge, particularly in rural areas where limited access to technology can hinder inclusive growth.

Cybersecurity risks also pose significant threats as legacy systems are upgraded, often lacking the built-in defences required to protect sensitive data. Integration of these legacy systems demands robust solutions that not only modernise operations but also safeguard against emerging threats. Furthermore, navigating complex regulatory frameworks is essential to ensure compliance while fostering innovation. By addressing these three key areas – digital inclusion, cybersecurity and regulatory alignment – e& enterprise can help drive more secure and cohesive Digital Transformation across the region,” he said.

The successful deployment of AI in both the private and public sectors hinges on two critical pillars: security and flexibility. Given the sensitive nature of the data handled by government agencies, robust security measures are paramount to safeguarding information from potential cyberthreats. Adherence to relevant regulations is equally essential to ensure compliance and maintain public trust.

Furthermore, the dynamic nature of public sector projects necessitates flexible AI solutions. Systems that can scale up or down to accommodate changing workloads and demands are crucial for optimising resource utilisation and ensuring effective service delivery.

Budget constraints can also be a limiting factor. Investing in new technology can be expensive, so it’s important to prioritise projects with a clear return on investment.

In Anglada’s experience, talent is the cornerstone of corporate success. “We are a people-first company and our greatest asset is the talent that drives us forward,” he said. “To attract and retain top talent in the tech industry, beyond offering competitive compensation and benefits, companies should invest in skills development, foster a positive company culture, provide meaningful work and stay competitive in the market.”

By implementing these strategies, e& enterprise has created an attractive and rewarding work environment comprising 2,000 experts from more than 65 nationalities.
AI is not only revolutionising the private sector but also significantly enhancing public services, with countries like the UAE and Saudi Arabia leading the way with innovative AI applications that serve as global models.

AI: A government game-changer

Generative AI (GenAI) is poised to revolutionise government operations. Estimates suggest GenAI could boost government productivity by a staggering US$1.75 trillion per year globally by 2033. This transformative potential underscores the importance of governments embracing AI technologies to enhance efficiency, improve service delivery and drive economic growth.

Governments in the region are actively driving the adoption of AI through strategic initiatives. Examples include the UAE’s Smart Dubai initiative and Saudi Arabia’s Vision 2030, which are spearheading the transformation of landscapes and public services through AI technologies.
These initiatives prioritise enhancing efficiency, reducing costs and delivering improved services to residents. A notable example is Dubai’s Autonomous Transportation Strategy, which aims to make 25% of all transportation services autonomous by 2030. Friendly regulations that foster innovation and mitigate risks are crucial for the successful implementation of such AI-driven initiatives.

“With strategic planning and proactive policies, the Middle East is on the cusp of becoming a global powerhouse in AI. Proactive government regulations can serve as a critical enabler for AI deployment by providing clear frameworks that promote trust and safety while allowing for innovation. The UAE, for instance, has developed forward-thinking AI policies, including the establishment of the AI Regulatory Lab (RegLab), a sandbox for testing AI applications in controlled environments. This approach allows businesses like ours and our partners to innovate while ensuring compliance with regulatory standards and mitigating risks associated with AI adoption,” Anglada said.

By setting the right conditions for AI innovation, governments in the region are not only driving economic growth but also reaping the benefits of cutting-edge technologies, which offer numerous benefits to both citizens and public sector entities.

For example, digital capabilities are driving the adoption of digitised identity solutions in governments across the region. These solutions create interconnected digital ecosystems that include user authentication, unique identifiers and credential verification. By leveraging advanced authentication methods like biometrics and two-factor authentication, these ecosystems enhance security and streamline access to government services.

Unique identifiers simplify interactions between citizens and government departments, while credential verification ensures the authenticity of documents. Smartphone-based digital wallets offer a convenient and secure way for individuals to manage and present their identities, facilitating faster and easier access to public services. This not only improves service delivery but also enhances data privacy and security.

Adopting a holistic approach to Digital Transformation

To successfully navigate Digital Transformation, leaders must prioritise a culture of innovation, customer-centricity, collaboration, cybersecurity, agility and talent investment. By fostering a culture that encourages innovation and experimentation, leaders can empower their teams to drive Digital Transformation. Placing the customer at the centre of all initiatives ensures that digital efforts are aligned with real-world needs.

Collaborating with external partners can bring fresh perspectives and accelerate progress. Strong cybersecurity measures are essential to protect sensitive data and maintain trust. Adapting to the rapidly changing digital landscape requires agility and flexibility. Finally, investing in cutting-edge technology and developing a skilled workforce are crucial for driving the digital agenda.

As e& enterprise continues to build out its AI capabilities, offering tailored solutions that align with the specific needs of each organisation, Anglada’s parting advice is to embrace AI as a strategic priority and start unlocking its potential to stay ahead of the curve: “For companies that haven’t embarked on their Digital Transformation journey, my advice is to start now. Don’t limit your vision; look outside the existing boundaries, considering what your organisation is capable of. Leadership, regardless of organisational size, should actively create a culture of innovation and invest in reinventing while maintaining business as usual. Leaders should instill passion through their people and ensure that they have the right skillsets on the journey.”

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