Inside the UAE’s AI Boom: Sectors, Use Cases, and Investment Trends Shaping The Upcoming Year

Artificial intelligence and automation are rapidly reshaping the UAE’s economic landscape, with 2025 marking a decisive shift from experimentation to large-scale adoption. From predictive analytics in construction to AI-powered finance operations, demand is rising across both public and private sectors. In this multi-expert interview, different leaders share insights on growth trends, top use cases, national strategies, and the challenges still shaping the country’s AI trajectory.

1. What has been the growth rate in spending on artificial intelligence (AI) and process automation solutions in the UAE since the beginning of 2025, and what are the projections for 2026?

Alexander Khanin, Founder and CEO, Polynome.ai

Global AI spending is set to hit $1.5 trillion this year and reach $2 trillion in 2026, which puts the recent surge in AI and process automation investment into perspective. Since the beginning of 2025, spending has accelerated at high double-digit rates, and forecasts show that momentum will carry into 2026 as enterprises scale adoption and generative AI matures.

Leading this global trend are pioneering nations, with the UAE being a prime example. As a frontrunner in formalizing AI governance—evidenced by the world’s first Minister of AI and initiatives like appointing Chief AI Officers across its public sector—the UAE has created a powerful ecosystem for adoption. This structured approach, complemented by qualification programs like the Dubai AI Seal, ensures that investment growth isn’t just keeping pace but is strategically channeled. Consequently, in key sectors, the growth rate not only matches but often outpaces the global average, solidifying the country’s position at the forefront of the AI-driven future.

2. Which sectors — such as banking and financial services, manufacturing, energy and utilities, logistics and transportation, or government — have recorded the highest demand for AI and automation solutions in the UAE so far, and what field indicators support this?

Vladimir Razuvaev, Chief Executive of Yango Tech

With the retail market projected to reach US$162 billion by 2028, retailers are rapidly adopting AI agents for replenishment, pricing, and procurement to boost stock accuracy, cut waste, and protect margins. Logistics operators are scaling robotics and computer vision to improve picking accuracy, optimise dispatch, and support intense e-commerce delivery cycles. These shifts show a market moving toward predictive, autonomous systems over manual workflows. At the same time, demand is surging in government, where expanding digital public services and the UAE’s push for AI-enabled, proactive governance are accelerating next-generation automation.

Armin Moradi, Founder and CEO of Qashio

The strongest demand is coming from finance teams, travel operators, and businesses where high-volume transactions, recurring supplier payments, and frequent cross-border spending expose gaps in visibility and control. These sectors are accelerating automation because manual expense tracking still leads to scattered receipts, delayed reconciliations, fraud and compliance risks that compound at scale. The shift is becoming more urgent as 64% of UAE businesses plan to increase automation spending in 2025, especially in finance, HR, and customer service. Leadership urgency is also accelerating adoption, as 60% of Middle East CEOs say they will need to evolve their businesses within the next decade to remain viable.

3. What are the most prominent use cases of AI and automation solutions currently seeing rapid

demand in the UAE (for example, service automation, chatbots, predictive analytics, predictive

maintenance, or industrial robotics)?

Ibrahim Imam, Co-Founder and CEO of PlanRadar

In the UAE, demand for AI‑ and automation‑driven solutions is growing rapidly, especially for service automation, predictive analytics and robotics. A recent national survey found that 59.4% of working‑age professionals are using AI in their daily jobs — the highest adoption rate globally.

In construction, this translates into predictive maintenance for equipment and automated defect detection as contractors cope with multitier supply‐chains and labour shortages. Meanwhile, the UAE industrial automation market is projected to grow from USD 92.4 billion in 2025 to USD 176.1 billion by 2031, at a CAGR of 11.2 %.

 These trends show that automation isn’t experimental—it’s becoming a baseline requirement for competitiveness.

4. How are national strategies such as AI 2031 or digital transformation and Smart UAE initiatives influencing demand for intelligent automation, and what related investment opportunities can investors explore in 2025–2026?

Karl Crowther, Vice President – MEA & APAC, Alteryx

AI’s projected $100 billion contribution to the UAE’s GDP by 2030 is reshaping how organisations plan, invest, and scale their data capabilities. National agendas are accelerating demand for technologies that improve decision quality, automate analytics, and raise workforce productivity. Organisations now need platforms that democratise analytics and give every employee the ability to work with data confidently, not just specialised teams. Alteryx research found that 76% of UAE analysts say AI and analytics automation make them more effective and efficient in their roles with 93% saying AI has transformed their work, showing that value creation starts with accessible tools and empowered teams.

5. What are the main obstacles or limitations facing the adoption of AI and automation solutions in the UAE so far and how are the public and private sectors planning to overcome them?

Alexander Khanin, Founder and CEO, Polynome.ai

The primary challenge is moving from isolated pilot projects to comprehensive, organization-wide integration. As highlighted in analyses like the Forbes article on why AI pilots fail, the main obstacles are often strategic—a lack of clear business alignment, siloed implementation, and underestimating the need for change management and talent upskilling.

In response, the UAE’s public and private sectors are shifting towards a more holistic framework. The government is leading by example, establishing central AI Offices and mandates for Chief AI Officers to ensure strategy is driven from the top. This is coupled with major upskilling initiatives like the Dubai AI Seal and the “AI Prompters” program to build foundational talent. The focus is no longer on individual technological tests, but on building integrated systems where AI is a core part of business processes and public service delivery.

In summary, the experts agree that the UAE is not just adopting AI, it’s scaling it across industries. With national strategies driving automation and private firms modernising rapidly, the country has become a global testbed for AI. Opportunities for 2025–2026 are significant, but so is the need for skills, strong data foundations, and clear long-term strategies.