According to market intelligence firm GlobalData, the total artificial intelligence (AI) market will be worth $1 trillion by 2030, up from $103 billion in 2023. This compound annual growth rate (CAGR) of 39% is driven by a wealth of AI applications, from customer service chatbots to intelligent computer vision-powered drones.
The transformative power of AI presents a huge opportunity for businesses across all industries. Those who execute this transition successfully stand to be at the forefront of Industry 4.0, as well as the forthcoming Industry 5.0. However, technical challenges and regulatory obstacles remain a challenge for many innovators in AI. The Middle East, notably Dubai, is leading the charge in overcoming these obstacles, providing AI ecosystems and introducing legislation that can make a difference. As a result, the UAE’s AI market is set to grow at a pace that outstrips the rest of the Middle East, as well as several G7 countries.
The global AI market 2024: key areas of growth
Generative AI (GenAI) remains the most hotly discussed area of artificial intelligence, driving automation across a variety of sectors. Large language models (LLMs) such as ChatGPT have demonstrated the revolutionary power of this tech, and LLMs are now in use across industries from hospitality to automotive as intelligent customer-assistance chatbots. As a result, the global conversational platforms market is currently worth $9.6 billion, but GlobalData analysis forecasts that it will expand to $340.8 billion in 2030.
GenAI models can also be used to create images. Drawing on a variety of sources, such models can be used to inform anything from advertising campaigns to educational resources. As a result, GlobalData predicts that the GenAI market will be worth $33.0 billion in 2027, up from $1.8 billion in 2022, thus growing at a CAGR of 91.4%.
However, the most valuable portion of the AI market will remain global specialised AI applications, forecast to be worth $512.1 billion in 2030. In the world of cybersecurity, specialised AI models can spot and decipher signals that precursor a cyberattack far more efficiently than human resources. In an increasingly cloud-based world, AI capabilities including biometric authentication will be essential in enhancing digital defences.
Of these specialised applications, computer vision (CV) is set to be the largest subcategory, worth $125.1 billion by 2030, according to GlobalData projections. Demand for CV is fuelled by the rising interest in autonomous vehicles (AVs) and drones, which use sensors to analyse and navigate their surroundings. Machine learning (ML) algorithms will be essential to furthering the capabilities of these new mobility methods.
CV can also be incorporated into robotics to create more intelligent models than ever before, which will have a significant effect on the productivity of industries such as manufacturing and healthcare. 3D cameras, lidar scanners, and ultrasound transmitters will all find an AI-based ‘brain’ which can then anticipate and react to different scenarios based on the processed data.
Regional market outlook: UAE leads in Middle East
The staggering numbers projected for the future AI market depend on the technology being integrated readily across all verticals. In the Middle East, countries were ahead of the game in adopting AI technology and as a result, the region is now set to become a hotbed of market growth in the upcoming years.
Notably, the UAE has emerged as a leading AI player. GlobalData research has found that the AI market in the country will be worth $5.45 billion by 2028, growing at a CAGT of 42.2%. Such a growth rate outstrips the forecast value of the AI market in high-powered economies such as France and Japan, as well as the UAE’s neighbours in Kuwait, Qatar, and Saudi Arabia.
“For AI to work at scale, legislation is important,” says Usman Wattoo, vice president of sales MEA and Turkey at Kore.ai. “I think many governments are still playing catch up.”
The UAE’s regional dominance is the result of its early recognition of the transformative power of AI. The Gulf nation was the first country in the world to appoint a dedicated AI minister in 2017 and continues to lead in creating an AI-friendly legislative landscape. As a result, a report by LinkedIn and Stanford University found that the UAE ranked first regionally and third globally in attracting AI talent relative to its population size.
Dubai continues to drive AI innovation
Notably, the emirate of Dubai has been pioneering the adoption of AI-related tech, with the trialling of autonomous taxis on the streets of Jumeirah one key example. Dubai Silicon Oasis (DSO) was established in 2005 and has since become an integral component of the Dubai Master Plan 2040, serving as an economic zone to foster AI innovation. Its dedicated AI cluster provides the ideal space for like-minded businesses to connect and innovate, while its leadership remains committed to putting ideas into practice.
The zone has emerged as a leading hub for business and sustainable living over the last two decades, transforming from the Middle East’s Silicon Valley into a dedicated economic zone for Knowledge and Innovation. Today, it is home to over 30,000 companies, from innovative startups and SMEs to multinational corporations and over 100,000 professionals and residents in several green communities across 7 sq. kilometers.
DSO offers modern commercial and industrial spaces, digital infrastructure, R&D facilities, and the ability to test new technologies on scale, from robotics and UAVs to autonomous cars and AI-powered Smart City integrations. What makes Dubai Silicon Oasis unique is its flagship ecosystem, which connects the dots and provides opportunities for rapid acceleration and growth.
DSO’s campus, for example, integrates unique AI features, including an AI-powered pedestrian crossing system to optimise traffic flow and an Internet of Things (IoT)-connected waste disposal system. Drones and autonomous vehicles continue to be trialled across the campus for deliveries as well as transportation, while the onsite Rochester Institute of Technology in Dubai offers a unique AI citizenship initiative that has students studying the principles of AI for a semester or more. A Global Skills report by Coursera found that the UAE outpaced the global year-on-year growth rate of 1,060% for AI course enrollments, once again highlighting that the country remains ahead of the curve and a valuable source of talent.
Kore.ai chose to establish their Middle East headquarters in DSO after looking at other economic zones in Dubai. “Working with DSO’s marketing and sales team was seamless,” explains Wattoo. “The creation of the AI cluster was also an attractive factor. It was a natural choice to set up an office there because of the connectivity.”
For companies working in AI or seeking to integrate AI into their business, DSO provides the ideal economic zone at the heart of a dynamic and innovative economy committed to realising the full potential of the $1 trillion AI opportunity.
“I talk a lot about the capacity for AI to change our society,” says Dr Juma Al Matrooshi, Director General of DSO. “LLMs and chatbots are already being implemented across a range of sectors, but for the technology to be implemented in the right way a greater sense of vision is required. DSO serves as one of the central pillars to Dubai’s Urban Master Plan 2040, focused on Knowledge & Innovation.
“Here, we are nurturing the startups and the pioneers that will help generative AI change the world. Though a dedicated AI cluster that now counts more than 500 businesses, from startups to multinationals, we see a great opportunity for international corporations to act on their expansion plans in the region. We are proud to serve as a facilitator for such renowned growth.”
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