The United Arab Emirates is witnessing a significant rise in the use of artificial intelligence across its business sector, with 72% of businesses in the country now adopting AI, according to the latest Unlocking the UAE’s AI Potential 2026 report.
The report, released on September 30, 2026, was produced by Amazon Web Services (AWS) in collaboration with the UAE Artificial Intelligence Office and research firm Strand Partners.
The latest findings show a substantial increase in AI adoption compared with the previous year. Business adoption reportedly increased from 53% to 72%, representing a 19-percentage-point rise.
The development highlights the increasing role of AI in business operations and the UAE’s broader efforts to establish itself as a major technology and innovation hub.
AI Moves Beyond Experimentation
Artificial intelligence is increasingly becoming part of everyday business operations rather than remaining limited to pilot projects and experimentation.
The report found that 85% of businesses already using AI said the technology had accelerated their digital transformation.
This indicates that businesses are increasingly connecting AI adoption with wider changes in how they operate, communicate with customers, analyse information and deliver services.
Companies can use AI across areas such as:
- Customer service and chatbots
- Marketing automation
- Data analysis
- Financial forecasting
- Supply-chain management
- Business process automation
- Personalised customer experiences
- Software development
- Cybersecurity
- Content creation
As AI tools become more accessible, businesses of different sizes are gaining opportunities to integrate automation and data-driven decision-making into their operations.
UAE Strengthens Its Position as an AI Economy
The growth in AI adoption comes as the UAE continues to invest heavily in technology and digital infrastructure.
The country has been developing policies and initiatives designed to encourage innovation, attract technology companies and build capabilities in artificial intelligence.
The increasing use of AI by businesses also supports the UAE’s wider digital-economy ambitions. The UAE Digital Economy Strategy aims to increase the contribution of the digital economy to national GDP from 9.7% in 2022 to 19.4% within 10 years.
The latest AI adoption figures provide an indication of how businesses are participating in this broader digital transformation.
Cloud Infrastructure Becomes Increasingly Important
Artificial intelligence requires significant computing capacity, data storage and digital infrastructure. As companies introduce more AI applications, demand for cloud services and advanced computing infrastructure is also expected to grow.
AWS has announced plans to invest up to AED 20.1 billion ($5.47 billion) in its AWS Middle East (UAE) Region through 2037.
According to AWS, the investment could contribute approximately AED 41 billion ($11.16 billion) to UAE GDP.
Such investments are particularly relevant to companies developing AI applications because cloud infrastructure can provide businesses with access to computing resources without requiring them to build and maintain all infrastructure independently.
Abu Dhabi Expands Focus on the Digital Economy
The development of the UAE’s technology sector is also being accompanied by efforts to better measure the country’s digital economy.
On September 30, the Statistics Centre – Abu Dhabi (SCAD) launched a Digital Economy Survey to assess digital economic activity and understand the contribution of technology to the economy.
The survey covers areas including:
- E-commerce
- Digital platforms
- Financial technology
- Software services
- Cloud services
- Digital infrastructure
- Data services
- Transport and delivery platforms
Collecting more detailed information about these areas can help provide policymakers and businesses with a clearer picture of how technology is contributing to economic activity.
AI Could Create New Business Opportunities
The rapid adoption of artificial intelligence is also creating opportunities for companies operating in the UAE technology ecosystem.
Businesses offering AI software, automation platforms, cloud solutions, data analytics, cybersecurity services and digital transformation consulting could see growing demand as more organisations adopt technology.
For startups, the expansion of AI adoption could create opportunities to develop specialised solutions for industries such as finance, healthcare, retail, logistics, real estate, education and professional services.
The development may also encourage international technology companies to expand their presence in the UAE.
Growing Demand for Digital Skills
The expansion of AI is also likely to increase demand for employees with technology-related skills.
Businesses adopting AI need professionals who can work with data, automation systems, cloud platforms and AI applications. At the same time, employees in non-technical roles may increasingly need basic AI and digital skills to work effectively with new tools.
This could increase demand for training programmes covering areas such as:
- Artificial intelligence
- Data analytics
- Machine learning
- Cloud computing
- Cybersecurity
- Digital marketing
- Business automation
- AI-assisted productivity
For students and young professionals, the UAE’s expanding technology ecosystem could also increase the importance of developing digital skills alongside traditional business and management knowledge.
Businesses Shift Their Focus Toward Productivity
The growing adoption of AI is also changing the conversation around digital transformation.
Instead of asking whether they should experiment with AI, businesses are increasingly looking at how AI can be incorporated into specific business processes.
For example, a company could use AI to automate repetitive administrative tasks, analyse customer behaviour, generate business reports or provide automated customer support.
The potential value of AI therefore depends not only on adopting the technology but also on how effectively companies integrate it into their existing workflows.
UAE’s Technology Ecosystem Continues to Develop
The combination of increasing AI adoption, cloud infrastructure investment and digital-economy initiatives is contributing to the development of the UAE’s technology ecosystem.
Dubai and Abu Dhabi already host a growing number of technology companies, startups, investors and digital service providers. Continued investment in artificial intelligence and cloud infrastructure could further expand this ecosystem.
The government’s focus on digital transformation has also created an environment in which businesses are increasingly exploring emerging technologies.
What the Latest AI Numbers Mean for Businesses
The increase from 53% to 72% AI adoption within a year is a significant change in the reported business landscape.
For companies operating in the UAE, the development may encourage greater attention to:
Automation: Businesses can identify repetitive processes that could potentially be automated.
Data: Companies may increasingly rely on data analytics to support business decisions.
Customer experience: AI-powered tools can be used for customer service and personalised interactions.
Productivity: Organisations can explore ways to reduce manual workloads and improve operational efficiency.
Innovation: Startups and established companies can develop new products and services using AI technologies.
However, successful AI adoption also requires businesses to consider data governance, cybersecurity, employee training and responsible technology use.
UAE’s Digital Transformation Enters a New Phase
The latest figures suggest that artificial intelligence is becoming increasingly embedded in the UAE’s business environment.
With reported AI adoption reaching 72%, substantial cloud infrastructure investments underway and initiatives aimed at measuring the digital economy, the country is continuing to build an environment focused on technology-led growth.
For businesses, the next stage will increasingly involve determining where AI can deliver measurable improvements and how technology can be integrated responsibly into existing operations.
For startups and technology companies, the expanding adoption of AI could create opportunities to develop solutions that address specific business challenges across the UAE and wider Middle East market.
Conclusion
The rise in UAE business AI adoption to 72% in 2026 highlights the rapid pace of digital transformation taking place across the country’s private sector.
The combination of artificial intelligence adoption, cloud investment, digital infrastructure development and efforts to measure the digital economy demonstrates the growing importance of technology to the UAE’s business landscape.
As more companies move from AI experimentation toward practical implementation, artificial intelligence is likely to remain an important area of business innovation, workforce development and digital transformation in the UAE.
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