UAE business AI adoption rises to 72 percent amid digital transformation

Artificial intelligence adoption among businesses in the United Arab Emirates has risen to 72 percent, up from 53 percent a year ago. According to the ‘Unlocking the UAE’s AI Potential 2026’ report, released by Amazon Web Services in collaboration with the UAE Artificial Intelligence Office, this 19-percentage-point increase represents approximately 36 percent year-over-year growth.

Among companies already utilizing AI, 85 percent reported that the technology has accelerated their digital transformation. This shift is accompanied by a move toward AI-native operations, where enterprise IT teams are transitioning from reactive troubleshooting to anticipatory, outcome-driven architectures.

Key drivers in the region include a demand for data sovereignty to comply with local regulations, such as the UAE Personal Data Protection Law. To support this, providers like ManageEngine have established local data centers in Dubai and Abu Dhabi to ensure on-soil data residency.