AI has enormous potential to transform businesses. Yet, many Gulf companies find themselves stuck in a cycle where AI prototypes work perfectly but never reach full implementation. The issue isn’t the technology itself – it’s the fear in the boardroom. Executives often hesitate to fully adopt AI solutions, holding back innovation and slowing progress.
Why AI Struggles to Scale
Yousef Khalili, the Global Chief Transformation Officer at Quant, explains that the real challenge isn’t with the technology, but with organizational culture. Leaders often view AI as an experimental tool, not as a strategic asset. This fear of disruption, whether it’s a fear of AI taking over decision-making or exposing inefficiencies in old business models, leads to hesitation.
Khalili believes that companies are failing to adopt AI because leaders are afraid to admit gaps in their knowledge. They also fear the consequences of AI making decisions that were once handled by humans. The result? Even if AI works, it’s never implemented because no one feels secure enough to champion it.
A Cultural Shift: AI as a Tool, Not a Threat
To move forward, Khalili suggests companies reframe how they view AI. Instead of positioning AI as a replacement for human judgment, it should be seen as a tool that enhances it. The shift needs to come from the top. Leaders must embrace AI, not just as a technical upgrade, but as a tool that makes better, faster, and more informed decision-making possible.
Khalili stresses that modern leaders must adopt traits such as empathy, inclusivity, and a willingness to learn about AI to successfully guide their teams through transformation. Without these qualities, resistance from employees and managers will only grow. Employees worry about being replaced, and managers fear becoming obsolete. But if leaders can highlight how AI will support, rather than replace, jobs, they can reduce this resistance.
Redefining Success: Focusing on More Than ROI
One of the biggest hurdles to AI adoption is the focus on short-term return on investment (ROI). Many businesses hesitate to invest in AI because they don’t see immediate financial returns. However, Khalili argues that transformation should not be measured solely by short-term financial gains. Instead, success should be assessed through indicators such as adoption rates, decision-making speed, employee engagement, and accuracy improvements.
Instead of focusing solely on financial outcomes, Khalili recommends using a balanced scorecard approach. This approach should track the broader benefits of AI, such as improved operational efficiency, deeper insights, and faster response to market changes.
Saudi Arabia: Leading the Charge in AI
While many Gulf companies struggle with AI adoption, Saudi Arabia is well-positioned to lead the way. With Vision 2030, the Kingdom has made AI a strategic priority. Investments in talent development, digital infrastructure, and AI regulations have created a solid foundation for both the public and private sectors to embrace AI.
Khalili sees Saudi Arabia’s top-down commitment to AI as a unique advantage. While many countries struggle to keep pace with technological advancements, Saudi Arabia’s leadership is driving the country forward. Vision 2030 will help the Kingdom overcome cultural barriers to AI adoption much faster than in other regions.
Moving Forward: Embracing AI as a Fundamental Tool
For AI to succeed in the Gulf, organizations need to rethink their approach. They must prioritize AI literacy, foster inclusive leadership, and redefine what success looks like. But most importantly, they need to stop waiting for certainty. They should start viewing AI as a fundamental capability, not a “nice-to-have.”
The real key to AI success isn’t just technology — it’s about creating a culture that supports and drives change. AI will only bring real, enterprise-wide value if companies address the cultural challenges first. By embracing AI as a tool for growth and innovation, companies can unlock its full potential and lead in the future.
As Khalili puts it, “Without addressing the organizational culture first, no AI pilots can deliver enterprise-wide value for sure.”
To truly harness the power of AI, Gulf companies need to change their mindset. They should embrace change and see AI as a key part of their future success. The time to act is now, and those who take the leap will lead the way.
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