AI as the engine of Saudi Arabia’s Vision 2030

Artificial intelligence has emerged as a cornerstone of innovation and economic transformation globally, and in Saudi Arabia, its impact is both profound and far-reaching.

As the Kingdom embarks on a journey to realize the goals of Vision 2030, AI is playing a pivotal role in driving progress, fostering economic diversification, and empowering organizations to embrace the future of technology.

At the heart of Vision 2030 lies a commitment to harnessing cutting-edge technologies such as AI to build a knowledge-based economy and establish Saudi Arabia as a leading global hub of innovation.

The recently announced Riyadh Declaration underscores the importance of AI as a transformative force. It emphasizes the need for AI technologies to enable digital access, enhance digital knowledge, and tackle global challenges while creating economic value.

This vision aligns seamlessly with Saudi Arabia’s plans to invest $100 billion in establishing a world-class AI technology hub under the banner of “Project Transcendence.”

This initiative promises to bring together expertise, infrastructure, and innovation to position the Kingdom at the forefront of AI advancements.

Adding to this momentum is GAIA, Saudi Arabia’s generative AI startup accelerator program. Launched in Riyadh in May 2023, GAIA represents a bold step toward nurturing a vibrant AI ecosystem by empowering startups and innovators to develop groundbreaking solutions. 

Similarly, Waed Ventures, Saudi Aramco’s venture capital arm, has allocated $100 million to invest in AI startups, further solidifying the Kingdom’s commitment to building a thriving technological landscape.

Notably, Aramco’s METABRAIN — a 250 billion parameter large language model — stands as a testament to Saudi Arabia’s ambition to lead in AI innovation, showcasing the potential to revolutionize industries and create unparalleled value.

The potential impact of AI on Saudi Arabia’s economy is substantial. A PwC report estimates that AI could contribute $135 billion to the Kingdom’s gross domestic product by 2030, a significant portion of the nation’s economic growth.

This transformative potential is already becoming a reality as organizations of all sizes and across all sectors embrace AI to optimize operations, drive growth, and accelerate progress toward Vision 2030.

In manufacturing, for instance, Obeikan Investment Group leveraged Azure OpenAI and IoT technologies to develop and implement a smart factory platform across 22 of the company’s factories.

As a result, the organization achieved a 30 percent increase in overall equipment effectiveness, a 30 percent reduction in costs, as well as significant reductions in waste and energy consumption.

Similarly, the Saudi Arabian Mining Co. (Ma’aden), the largest mining company in the Middle East, adopted Microsoft 365 Copilot to help employees spend less time on administrative tasks and instead focus on more strategic tasks out in the field.

Over a period of six months, employees were able to significantly enhance their productivity, saving around 27 minutes per day that were previously spent on unnecessary meetings, 14 minutes on searching for and summarizing documents, and 18 minutes on creating high-quality content.

In education, Gameit, an innovative Saudi startup, leveraged Azure OpenAI to develop AI-powered games that enhance cognitive skills such as attention, memory, logical reasoning, auditory and visual perception, and social skills in children.

With our investments in a new cloud datacenter region, we are providing the foundation for Saudi organizations to innovate and lead in the era of AI.

Turki Badhris

The games are scientifically designed to help all school students, including those facing learning challenges.

Meanwhile, Diriyah, the historic birthplace of the first Saudi state and home to the UNESCO World Heritage site of At-Turaif, utilized the advanced capabilities of Copilot Studio to develop and deploy the “CXQA AI Agent,” which is empowering its teams to enhance customer experiences, analyze data to uncover key trends, develop tailored solutions, and efficiently manage complex on-site operations.

Such use cases highlight the transformative potential of AI in addressing complex challenges, fostering innovation, and delivering tangible benefits to society.

As a longstanding partner in Saudi Arabia’s digital transformation journey, Microsoft is deeply committed to empowering organizations to leverage the latest advancements in AI and other transformative technologies to achieve their goals.

Our investments in the Kingdom reflect this commitment, specifically the construction of a new cloud datacenter region that will empower businesses with access to scalable, highly secure, and resilient cloud services.

Recently, we completed construction of three Azure Availability Zones, which will serve as the necessary foundation for AI innovation, enabling organizations to access the latest AI technologies and services with enhanced security and reliability.

Our collaborations with leading Saudi organizations further underscore our dedication to fostering a vibrant technological ecosystem.

By partnering with government entities, enterprises, and startups, we aim to create solutions that drive innovation, attract global investments, and position Saudi Arabia as a global hub for technology and talent.

As Saudi Arabia continues its journey toward realizing Vision 2030, AI stands as a powerful catalyst for change. The Kingdom’s bold investments in AI infrastructure, startups, and innovation are not just setting the stage for the future — they are defining it.

We have seen how organizations like Obeikan, Ma’aden, Gameit, and Diriyah are already reaping the tangible benefits of AI, from increased efficiency and cost savings to enhanced customer experiences and educational advancements.

This is not a distant vision; it is the reality unfolding now.

With such undeniable momentum, the time to embrace AI at scale is not tomorrow, but today. The opportunities for transformation are vast, and the potential to contribute to Saudi Arabia’s goals is immense. Don’t just observe the AI revolution; be a part of it. 

Microsoft stands ready to support everyone on this journey, empowering organizations to navigate the complexities of the digital age, accelerate their AI transformation, and unlock new opportunities for growth and prosperity.

With our investments in a new cloud datacenter region, we are providing the foundation for Saudi organizations to innovate and lead in the era of AI.

We look forward to the road ahead as we help accelerate progress toward Vision 2030 and build a more prosperous and sustainable future for the Kingdom.

• Turki Badhris is president of Microsoft Arabia