Generative AI - United Arab Emirates

The Artificial Intelligence market in the United Arab Emirates is witnessing rapid growth, fueled by factors such as the increasing adoption of AI technologies, growing awareness about its benefits, and the convenience of online AI services. With an intense growth rate, this market is being influenced by the country's focus on digital transformation and the adoption of emerging technologies across various industries.

Customer preferences: As the United Arab Emirates continues to position itself as a hub for technological innovation, the Generative AI Market within the Artificial Intelligence Market is experiencing a significant uptick in consumer interest. This can be attributed to the country's growing tech-savvy population and its increasing adoption of smart devices and digital solutions. Additionally, with the rise of virtual and augmented reality technologies, there is a growing demand for personalized and immersive experiences, driving the adoption of generative AI in various industries such as gaming, entertainment, and marketing. This trend is further fueled by the country's diverse and tech-forward culture, which values convenience, efficiency, and cutting-edge technology.

Trends in the market: In United Arab Emirates, the Generative AI market within the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots and virtual assistants. This trend is driven by the growing need for efficient customer service and personalized user experiences. Additionally, there is a shift towards using AI for data analysis and decision-making in various industries such as finance, healthcare, and retail. These developments have significant implications for businesses, as they can improve operational efficiency and enhance customer satisfaction. Furthermore, as AI technology continues to advance, it is expected to disrupt traditional business models and create new opportunities for industry stakeholders in the UAE.

Local special circumstances: In the United Arab Emirates, the Generative AI market is thriving due to the government's investment in technology and innovation. The country's strategic location as a global business hub, with a diverse and tech-savvy population, has also played a significant role in its growth. Additionally, the country's regulations and initiatives, such as the UAE Artificial Intelligence Strategy 2031, have created a favorable environment for the development and adoption of AI technologies. This has attracted major players in the AI market, making the UAE a leading market for Generative AI in the Middle East and North Africa region.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market in the United Arab Emirates is also impacted by macroeconomic factors such as government initiatives to promote technology adoption, investment in research and development, and the overall economic health of the country. With the UAE's strong emphasis on innovation and technology, the market for Generative AI is expected to experience significant growth. Moreover, the country's favorable business environment and strategic location make it an attractive market for AI companies, driving further investment and development. Additionally, the increasing digitalization of industries and the focus on enhancing customer experience through AI-driven solutions are key drivers of market growth in the UAE.

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.