Saudi Arabia’s AI Adoption Jumps to 33% as Digital Transformation Sweeps the Kingdom

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One in three businesses in Saudi Arabia now utilizes artificial intelligence, marking a significant 20% increase from the previous year, according to a new report from the General Authority for Statistics (GASTAT). The findings from the “Establishments ICT Access and Usage Survey 2025” highlight an accelerating and widespread digital shift across the Kingdom’s private sector, moving far beyond early adopters in the tech industry.

Quick Facts

  • AI adoption reached 33.1% in 2025.
  • 20% year-on-year growth in AI use.
  • Cloud computing adoption passed the 50% mark.

Beyond Tech: AI Penetrates Finance and Education

While the information and communications sector leads with 61.1% AI adoption, the data shows that the technology is becoming integral to other core industries. The financial and insurance services sector recorded an adoption rate of 52.9%, with the education sector close behind at 51%.

Other industries showing strong uptake include transportation and storage (44.4%) and professional, scientific, and technical activities (43.9%). This broad distribution suggests a structural shift in how Saudi businesses operate, rather than a trend confined to a few digital-native companies.

Cloud and IoT Form the Digital Backbone

Underpinning the growth in AI is a solid foundation of other digital technologies. Cloud computing has now been adopted by 51.3% of Saudi establishments, crossing the majority threshold for the first time. The primary uses include cloud-based office software (56.4%), email services (55.3%), and data storage (42.8%).

The Internet of Things (IoT) is also widely used, particularly for building security. A substantial 71.4% of businesses use IoT for applications like smart alarms, surveillance, and access control. This widespread infrastructure supports more complex, data-driven operations.

Digital Commerce and Operations Become Mainstream

The report confirms that digital channels are now central to both marketing and operations for Saudi businesses. E-commerce activity is expanding, with 33.5% of establishments using the internet to sell or display their products and services.

Meanwhile, electronic banking has become standard practice, with 79.1% of businesses using online banking services. Social media is also a key tool, with 66.3% of companies maintaining a presence on social platforms and 52.3% actively using them for advertising.

About GASTAT

The General Authority for Statistics (GASTAT) is the official statistical reference for Saudi Arabia. It provides public and private sectors, as well as international organizations, with official statistics and data to support policymaking, research, and decision-making.

Source: Middle East AI News

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