UAE businesses are pouring money into artificial intelligence, with spending rocketing by 521% over the last 13 months as companies prioritize productivity and operational resilience. The new data comes from a report by Pemo, a Dubai-based spend management platform, which analyzed over AED 1.4 billion in annual transactions from more than 6,000 local companies.
Quick Facts
- AI spending up 521% in 13 months
- Data from over 6,000 UAE businesses
- SMEs account for 59% of total AI spend
A Shift from Experimentation to Integration
The report’s findings, based on corporate card and bill payment data from January 2025 to February 2026, show a clear inflection point in late 2025. The final quarter of that year saw three times more first-time AI adopters than any quarter in 2024, signaling a move from casual experimentation to consistent investment.
While adoption is growing—with 12% of UAE businesses now actively using AI tools—most are still in the early stages. Nearly two-thirds of these companies rely on a single tool. However, a growing cohort of 37% is now using two or more, suggesting that AI is becoming more deeply embedded in daily operations like software development, content creation, and workflow automation.
SMEs Lead the Charge
The UAE’s small and medium-sized business ecosystem is driving this growth. Although larger enterprises spend more per company, SMBs collectively make up 59% of the total AI expenditure. This highlights the agility of smaller firms in adopting tools that offer immediate efficiency gains. Mid-sized companies are also proving to be among the most active users, with the highest frequency of AI-related transactions.
This trend aligns with the UAE’s national strategy to position artificial intelligence as a key pillar of its digital economy. The data from Pemo suggests that businesses are already acting on this vision, integrating AI to stay competitive.
Efficiency in an Uncertain Climate
According to the report, the increased investment points to a shift in business priorities amid regional geopolitical uncertainty. Companies are focusing on technologies that deliver immediate operational advantages, helping them run leaner and respond faster to market changes.
“Businesses are becoming much more focused on where AI delivers real value today,” said Ayham Gorani, Co-founder and CEO of Pemo. “The priority is improving efficiency, reducing friction in day-to-day operations and enabling teams to move faster without adding complexity.”
Gorani added, “In the current climate, that ability to do more with less is critical. As organisations see clear returns, adoption scales quickly, evolving from single tools into broader, more embedded use. That is what ultimately drives stronger productivity and more resilient operations.”
Despite the rapid growth, adoption remains uneven. Many traditional industries are still in the early phases, but as AI tools become more accessible, their use is expected to broaden across the wider economy.
About Pemo
Pemo is a UAE-based spend management platform that provides businesses with smart corporate cards, automated invoice payments, and expense tracking tools. The company helps organizations control and monitor their spending in real-time.
Source: Zawya
