Jeevan ThankappanSaudi enterprises are ramping up their AI investments and targeting key business functions for AI transformation, according to a recent YouGov survey commissioned by SAP. The results will be used to drive SAP’s efforts to expand collaboration with customers and partners in the Kingdom to create industry-specific AI solutions and use cases at its Experience Innovation Center in Khobar.
The survey gathered insights from IT decision-makers across a variety of Saudi industries, uncovering key trends and investment areas that illustrate the growing role of AI in the economy. Notably, 40% of surveyed Saudi companies plan to dedicate over 50% of their technology budgets to AI by 2025, with strategic AI applications being prioritized in customer service (45%), finance (41%), and sales (41%). This focus underscores an increasing awareness of AI’s capacity to transform critical operational areas, enhance customer interactions, and foster business agility.
The survey also considered how companies would approach selecting and investing in solutions. The top priority was seen as investment in an enterprise resource planning (ERP) solution with embedded AI capabilities by 39% of companies, followed by AI solutions custom-built by a third party (33%), in-house developed AI systems (17%), and a series of AI solutions from multiple vendors (7%).
“Saudi enterprises are harnessing the transformative power of AI to boost operational efficiencies and enrich customer experiences,” says Ahmed AlFaifi, Senior Vice President and Managing Director, SAP, Middle East Africa – North. “We are encouraged that the top investment priority is an AI-infused ERP system as this is the approach we promote through solutions such as SAP S/4HANA. For those enterprises that prefer custom-built solutions, SAP has established the Experience and Innovation Center in Khobar, where SAP experts, partners and customers can work together to collaborate on industry-specific solutions.”
While there is an established network of SAP Experience Centers across the globe, the center in Khobar holds the unique position of featuring an innovation hub, dedicated to fostering collaboration among SAP, customers, and partners. With a focus on creating business value through connections, collaboration, and co-creation, it aims to raise awareness of AI and digital trends across global industries.
Objectives and expertise
Another key survey finding was that most companies view operational efficiency as their top AI objective, with 45% of respondents citing it as the primary reason for adopting AI, followed by customer experience enhancement (26%) and innovation in products and services (17%).
When it comes to developing a skilled workforce capable of effectively leveraging the significant investment in AI, the majority of Saudi companies had plans in place. While 65% had already implemented some form of AI staff training, while a further 29% planned to do so by the end of 2025. In addition, 87% planned to recruit new staff specializing in AI over the next 18 months.
