If Saudi Arabia makes significant investments in generative artificial intelligence (AI) across various industries and use cases, it could contribute up to $24 billion (90 billion SAR) to the country's Gross Domestic Product (GDP), according to market research from Oliver Wyman and the Saudi Data and Artificial Intelligence Authority (SDAIA).
Generative AI has the potential to significantly boost productivity and efficiency across multiple sectors of the economy, leading to notable growth in both national and global GDP. The impact of the technology depends on three key factors: building robust technological infrastructure, reskilling the workforce, and incentivizing innovation adoption.
AI for Economic Progress
According to the research, generative AI has found many promising applications in Saudi Arabia that align with the country’s goals under the “Vision 2030” framework, aimed at economic diversification and technological progress.
In healthcare, generative AI could significantly accelerate drug discovery, research, and clinical trials. It could also enhance diagnostics in areas like radiology and pathology, as well as optimize the operations of healthcare institutions. In the industrial sector, AI would help improve maintenance forecasting and optimize manufacturing processes.
Meanwhile, in financial services, generative AI could drive customer service personalization and financial advisory. In the public sector, the technology could enhance citizen experiences and contribute to public safety. However, the potential use cases for the technology are far broader, note Oliver Wyman and SDAIA in their report.
Overall, these innovations could create new value amounting to approximately 2% of Saudi Arabia’s total GDP.
Impact on the Labor Market
The integration of generative AI could also have a significant impact on the labor market. As automation replaces certain jobs, over 60% of white-collar workers worldwide are concerned about the impact of the technology on their professions. In Saudi Arabia, by 2030, progress in this area could lead to the loss of up to 150,000 jobs in the private sector. However, this impact will largely depend on how actively companies in the country adopt AI.
High Adoption Rate in Saudi Arabia
Research also showed that Saudis are already using generative AI tools more frequently than the global average — 68% of Saudis use the technology weekly, compared to 55% globally and significantly higher than users in the United States.
“These adoption figures highlight the transformational potential of the technology, which could significantly improve efficiency. Generative AI could add up to $20 trillion to global GDP by 2030 and save 300 billion working hours annually,” the report states.
Outlook for India and Europe
According to the data, India is showing the highest level of generative AI usage among all countries, indicating recognition of the technology outside of Western nations. At the same time, Europe has remained more skeptical about AI adoption, becoming the first region to implement regulations for AI-based products and services.