January 2020 will mark four years since WEF professor Klaus Schwab first coined the term The Fourth Industrial Revolution. Since then, the pace of digital transformation has increased rapidly, with enterprises and industries gearing up to succeed, and lead, in a technology-driven world.
Last year, the United Arab Emirates (UAE) reached a number of milestones in the Information and Communications Technology (ICT) space. Mubadala, Abu Dhabi’s state investment company, announced a new $250 million tech fund, Microsoft opened its Middle East data centres in Dubai and Abu Dhabi, and the country launched the world’s first graduate level, research-based artificial intelligence (AI) university.
Together, these investments saw the UAE rise four positions in the Global Competitiveness Index, with the country now ranking second globally in ICT.
A front-runner in AI
2019 also saw the UAE advance its position as a world leader in AI. A research report by Microsoft and EY found that, not only is the UAE the second highest investor in AI-enabled technologies in the Middle East, but already 94 percent of companies are engaging with AI at executive management level.
Specifically, local companies are deploying machine learning to make more informed decisions and optimise their operations, with the most concentrated focus on customer engagement. The use of chatbots in marketing is becoming very common, with the broadest applications in the airline, banking and telecommunications industries.
But much like in the rest of the world, many UAE companies are currently still in the planning stages of AI. Only a few are piloting AI projects, or putting AI to active, but selective, use. For many, the focus is still on digitization and developing the enabling foundations for AI, including modern infrastructure, applications platforms, and good quality data.
What can we expect in 2020?
With that in mind, 2020 will continue to see investments into AI-enabling infrastructure – particularly cloud computing. With more data centres supporting the local storage and processing of data, more companies are likely to migrate to the cloud to save on IT infrastructure costs, boost operational efficiencies and increase revenue. The International Data Corporation has, in fact, noted a slowdown in general hardware investments and increase in cloud uptake, expecting spending on public cloud services in the UAE to double in the next three years.
Companies in the Middle East are particularly attracted to the hybrid model – combining public and private cloud services so that they can work with their existing IT systems, while adding an intelligent new layer on top. Nearly half of surveyed enterprises in the Middle East and Africa plan to use hybrid cloud in the next two years – more so than enterprises in the Americas.
Cloud computing will play a leading role in improving data foundations, while the internet of things and edge computing will unleash innovation based on the availability of data on a whole new level. As this happens, AI activity in 2020 is likely to increase. In fact, 61 percent of companies believe AI will have a significant impact on their operations over the next five years.
Where previously companies have used external partners for AI support, there will also be an increased focus on developing AI capabilities and talent internally – a charge Abu Dhabi’s AI University aims to lead. However, a crucial part of this upskilling and re-skilling will need to be a focus on building diverse workforces.
AI relies heavily on the data and algorithms it is fed. If this data, which by definition is highly unique and customised, does not represent the customers it needs to support, the systems will fail.
For AI projects to be successful locally, they need to be jointly developed locally and, importantly, by people from diverse backgrounds – men, women, those with and without disabilities, those with different languages, accents, perspectives, styles and backgrounds. This will help to remove any potential bias, ensuring the systems and the outcomes they support are fair, relevant and beneficial to every person and every organization on the planet.
UAE companies, for instance, currently cite text analysis and natural language processing among the most useful AI applications. A diverse workforce will ensure these systems can learn and respond to multiple languages, accents and utterances – better catering to a varied customer base.
AI for business and economic growth
Beyond business growth, the combination of cloud and AI will have a positive knock-on effect on job creation, entrepreneurship and economic growth. Cloud services alone are predicted to bring more than half a million jobs to the Middle East, including the opportunity for over 55,000 new jobs in the UAE by 2022. At the same time, these technologies have the potential to create lasting societal impact, inspiring purpose-led innovation in healthcare, energy, agriculture and education. Those countries, communities and companies that recognise this value and place early bets and a premium on upskilling their workforce will be able to benefit from this the fastest.
It’s an exciting time for technology and, with the UAE’s current trajectory, the country is on course to reap maximum benefits and advance its position as a leading ICT hub.
Celine Bremaud is Vice President of Sales, Marketing and Operations for Microsoft Middle East & Africa
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