Ambition to emerge as leading AI nations motivates these Gulf states.
Artificial Intelligence (AI) might generate a substantial $320 billion for the Middle East by 2030, equating to approximately 2% of global advantages, suggests a report published by consultancy PwC. Stephen Anderson, Middle East strategy and markets leader at PwC, stated during CNN's Global AI Summit (GAIN) held in Riyadh, Saudi Arabia, that investments in AI are soaring in the Middle East.
Anderson asserted that the region's inhabitants are more willing to experiment with and engage in AI compared to other locations globe-trotting. However, the rapid growth of AI comes with a downside - it is highly energy-consuming and is progressively becoming one of the key contributors to greenhouse gas emissions. Google revealed that its 2023 emissions increased by nearly 50% compared to 2019, partly due to AI's energy needs. Energy demand from AI, data centers, and cryptocurrencies is expected to double by 2026, as per the International Energy Agency.
Anderson is optimistic that Gulf countries, whose economies rely heavily on fossil fuels, possess the potential to become "major players" in this technology and make it greener. He explained that due to the region's strategic position in energy production, it is an ideal location to merge sustainability, energy, and the computer power necessary for AI. Saudi Arabia, Qatar, and the UAE are the Middle East's AI pioneers.
As Saudi Arabia endeavors to minimize its economy's dependence on oil and gas, it has allocated significant funding to AI, which it believes will support grasping the objectives outlined in its "Vision 2030" strategy, a government program targeting an economic diversification. A recent forecast from the Saudi Data and AI Authority (SDAIA), which hosted the GAIN summit, indicated that AI will contribute 12% of the country's GDP by 2030, growing annually at an impressive 29%.
Plans are underway to create Arabic-language models based on local datasets, capturing the nuances that have been absent from platforms like ChatGPT. Last year, the UAE introduced Jais, a tool for generating Arabic sentences, and Saudis have developed an Arabic chatbot named ALLaM.
It was announced last week that ALLaM will be hosted on Azure, Microsoft's cloud computing platform. This news was preceded by the announcement in early 2023 that ALLaM would also be accessible through IBM's watsonx platform.
Nick Studer, CEO of management consulting firm Oliver Wyman Group, who attended the GAIN summit, stated that focusing on Arabic language models could fortify Saudi Arabia's position in competition with English-speaking markets, which enjoy an inherent advantage because of the many prominent language models.
According to Studer, around a dozen Arabic-based large language models are under development in the country, catering to various applications, such as chat, governmental, and corporate scenarios. "The combination of governmental and private sector entrepreneurship might shape an AI hub, especially as the kingdom and the broader region strive to rejuvenate their economies," he said.
Governance obstacles
Establishing AI and data governance is one of the significant challenges: how ought AI and data be regulated securely, ethically, and fairly?
Various policies were introduced during the summit, such as the SDAIA's release of deep fake responsible use guidelines, the unveiling of the Riyadh Charter for AI in the Islamic World, which outlines an ethical framework for developing AI technologies, and a global AI readiness framework, led by the International Telecommunication Union.
According to Studer, a sound regulatory framework is essential to the future of AI. "There are numerous concerns which emerge in conjunction with the development of AI - not just privacy worries, not just the threats of job loss, but also those related to national sovereignty if your economy starts to rely on a set of tools which are built outside of your control. Sensible regulation is of utmost importance," he explained.
The Middle East, with its AI pioneers Saudi Arabia, Qatar, and the UAE, aims to contribute 12% of its collective GDP through AI by 2030, showcasing its global significance in this technology sector. Moreover, the world is closely watching these developments, as AI has the potential to reduce the Middle East's reliance on fossil fuels, aligning with global efforts to combat climate change.
