UAE AI Spending Rises 105% as Enterprise Execution Falls Behind

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UAE organisations increased their AI spending by 105% year-on-year, but scored 48 out of 100 on ServiceNow’s 2026 Enterprise AI Maturity Index, highlighting a gap between investment and execution.

The report, based on a ThoughtLab survey of 100 UAE executives as part of a global sample of 4,500, found that 57% of organisations have implemented agentic AI. However, only 7% are using it to build autonomous workflows. In most cases, AI is helping employees work faster rather than changing how businesses operate.

UAE organisations expect AI to account for almost one-fifth of their IT budgets by 2027. Yet 77% of executives identified weak data accuracy, access and management as a major barrier to scaling AI. Only 14% have replaced legacy systems with AI-integrated platforms, while 16% have introduced AI testing, auditing and risk-management processes.

ServiceNow said the UAE’s AI maturity score rose 13% year-on-year, but fragmented systems, limited data readiness and governance gaps continue to constrain progress. The report suggests that moving beyond pilots will require stronger integration and operational controls, not simply higher spending.

The index surveyed 4,500 executives and 2,000 employees across 19 countries and 12 industries.

Source: Middle East AI News

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