Generative AI - Saudi Arabia

The Generative AI market in Saudi Arabia is rapidly expanding, fueled by the surging demand for advanced artificial intelligence solutions. Factors such as the country's growing investment in digital technologies and increasing awareness about the benefits of AI are driving this intense growth rate. Online health services also offer convenience, further contributing to the market's rapid expansion.

Customer preferences: As the use of artificial intelligence continues to expand in Saudi Arabia, there is a noticeable shift towards the adoption of generative AI technology. This is due to the growing demand for personalized and relevant content, particularly in the entertainment and marketing industries. Additionally, cultural nuances and preferences for customized experiences are driving the demand for generative AI solutions. This trend is expected to continue as more businesses look to leverage AI for enhanced consumer engagement and satisfaction.

Trends in the market: In Saudi Arabia, the Generative AI Market within the Artificial Intelligence Market is experiencing a surge in demand for AI-powered chatbots and virtual assistants to improve customer service and streamline business operations. This trend is driven by the country's rapid digital transformation and increasing investments in AI technology. Additionally, there is a growing focus on leveraging AI for personalized marketing and recommendation engines to enhance customer engagement and drive sales. These developments are significant as they demonstrate the potential for AI to transform various industries in the country. However, they also raise concerns about the displacement of human jobs and the need for upskilling to meet the demands of an AI-driven economy. Industry stakeholders must carefully consider these implications and develop strategies to leverage the opportunities while addressing potential challenges.

Local special circumstances: In Saudi Arabia, the Generative AI market is experiencing significant growth due to the government's Vision 2030 plan, which promotes the development and adoption of advanced technologies. Additionally, the country's strong focus on diversifying its economy away from oil has led to increased investments in the AI sector. However, the market is also facing challenges, such as cultural barriers and strict regulations on data privacy, which may hinder the growth of AI applications. Furthermore, the country's unique geographical location and climate have influenced the demand for AI solutions in sectors such as agriculture and energy.

Underlying macroeconomic factors: The Generative AI market in Saudi Arabia is significantly impacted by macroeconomic factors such as government initiatives, technological advancements, and investment in AI infrastructure. With the Saudi government's Vision 2030 plan, there is a strong focus on developing the AI sector, creating a favorable regulatory environment and providing funding for research and development. Additionally, the growing demand for AI-powered solutions in various industries, such as healthcare, retail, and finance, is driving the market growth. Furthermore, the country's stable economic health and increasing investment in technology and innovation make it an attractive market for AI companies.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.