Ambitions of Gulf States in Artificial Intelligence

Several Gulf nations, led by the UAE, are making significant investments in artificial intelligence, with projections indicating a contribution of $320 billion to the region by 2030. Despite challenges related to energy consumption and governance, these countries are well-positioned to lead in AI development, particularly with innovations targeting Arabic language models and sustainable practices.
In recent years, the United Arab Emirates (UAE) has articulated its ambition to emerge as a significant contender in the field of artificial intelligence (AI), a trend that has now been adopted by other Gulf nations. According to a PwC report, AI is projected to contribute $320 billion to the Middle East by the year 2030, accounting for approximately 2% of the global benefits from this technology. Stephen Anderson, the Middle East strategy and markets leader at PwC, remarked, “There is huge investments going into (AI) in the Middle East,” during the Global AI Summit (GAIN) held in Riyadh, Saudi Arabia. He emphasized that people in the region are particularly willing to experiment with AI compared to other parts of the world. A significant concern regarding the rapid development of AI is its substantial energy consumption, which has become a major contributor to greenhouse gas emissions. For instance, Google reported a near 50% increase in its emissions in 2023 compared to 2019, attributing a portion of this rise to the energy demands of AI. The International Energy Agency anticipates that energy consumption related to AI, data centers, and cryptocurrencies could potentially double by 2026. However, Anderson is optimistic that Gulf nations, whose economies are largely reliant on fossil fuels, are well positioned to be influential players in the AI sphere and possess the potential to develop greener AI technologies. He stated, “We are at the center of the world when it comes to energy – not just old energy, but particularly new energy. This is the lowest-cost place anywhere in the world to produce solar energy. So the opportunity to combine sustainability and energy with the computer power that is required from an AI perspective is really important.” Anderson highlighted the UAE, Qatar, and Saudi Arabia as leading investors in AI within the region. Saudi Arabia, in its endeavor to reduce dependence on oil and gas, has poured resources into AI, aiming to align with its “Vision 2030” strategy to diversify the economy. A projection from the Saudi Data and AI Authority (SDAIA), which hosted the GAIN summit, indicates that AI could contribute 12% to its GDP by 2030, growing at an annual rate of 29%. Significant strides are being made across the region in developing Arabic-language AI models trained on local datasets to better reflect the nuances of the language, which are often overlooked by popular platforms like ChatGPT. The UAE introduced a tool named Jais, while Saudi Arabia has developed an Arabic chatbot known as ALLaM. Recently, it was announced that ALLaM will be hosted on Microsoft’s Azure cloud computing platform, following its availability on IBM’s watsonx platform earlier this year. Nick Studer, CEO of the Oliver Wyman Group, present at the GAIN summit, noted that focusing on Arabic language models may enable Saudi Arabia to compete with English-speaking markets that traditionally benefit from a plethora of existing large language models. He remarked that there are over half a dozen Arabic-based large language models under development in the country, which will serve a variety of applications, from chat to governmental functions. Studer stated, “That combination of governmental and private sector entrepreneurialism may well lead to the development of an AI hub, particularly as the kingdom and the wider region seek to diversify their economies.” A pressing challenge remains regarding the governance of AI, particularly concerning public perceptions: how should AI and data be regulated to ensure safety, security, ethics, and fairness? During the summit, various policies were unveiled, including guidelines from the SDAIA for the responsible use of deep fakes, the introduction of the Riyadh Charter for AI within the Islamic World to create a regulatory framework aligned with Islamic principles, and a global framework for AI readiness led by the International Telecommunication Union. Studer asserted the necessity of a robust regulatory framework for the future of AI, stating: “There are many concerns that go with the development of AI – not just privacy concerns, not just the risks of losing jobs, but also all the way up to national sovereignty if your economy starts to rely on a set of tools which are built outside of your control. It is critical that we have sensible regulation in place.
The Gulf states are increasingly recognizing artificial intelligence as a transformative force that can significantly enhance their economies. With the potential for AI to contribute substantially to the region’s GDP, initiatives are being implemented to harness this technology effectively and sustainably. The emphasis on developing Arabic-language AI models is also a strategic move to ensure that local nuances are adequately represented, promoting innovation and relevance in a global digital landscape.
In conclusion, the Gulf states, particularly the UAE, Qatar, and Saudi Arabia, are aggressively pursuing advancements in artificial intelligence to capitalize on its economic potential while addressing associated energy and governance challenges. The region’s ability to leverage its energy resources to power AI, coupled with a focus on localized innovations, positions these countries as future leaders in this transformative technology. Furthermore, establishing a strong regulatory framework will be crucial in navigating the complexities associated with the responsible development of AI.
Original Source: www.cnn.com