The Economic Impact of Generative AI Use: The Future of Work in the Kingdom of Saudi Arabia

The Economic Impact of Generative AI Use: The Future of Work in the Kingdom of Saudi Arabia

The Saudi Vision 2030 was launched in 2016, setting forth 66 objectives for artificial intelligence (AI) adoption. To realize these objectives, the Kingdom of Saudi Arabia released the National Data and AI Strategy in 2020, which emphasizes innovation, private sector expansion, and the development of digital skills among its abundant youth population – with 60% of Saudis being under the age of 30.

Saudi Arabia’s AI strategy and its emphasis on technology have been part of a broader push to diversify its economy away from oil dependency. Since the launch of the Saudi Vision 2030, its economy has become significantly more economically diverse, and the country has made strides in positioning itself as a technology leader. Furthermore, the message seems clear to Saudi policymakers that generative AI can provide further impetus to private sector innovation and help support their continuing efforts to diversify the economy. To enable this, Saudi Arabia published its Generative Artificial Intelligence Guidelines in January 2024 to promote investment, adoption, and responsible use of generative AI while reducing the associated risks.

Generative AI, which refers to a category of AI algorithms that can recognize patterns and make predictions, opens the door to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. The potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.

This report seeks to contribute to the ongoing development of Saudi Arabia’s AI policies, by providing data-driven insights into the economic opportunities that generative AI use in the private sector could create, and what it means for its local industries and workforce readiness.

This study estimates that using generative AI to transform the way work is currently done in the Saudi private sector economy, excluding government agencies, can potentially unlock USD133.6 billion of productive capacity, equivalent to the size of its manufacturing industry. This estimate does not specify a timeframe for achieving this uplift but illustrates the potential gains for the economy should full adoption be achieved.

Saudi Arabia has an opportunity to better position its businesses and workers to unlock the potential of generative AI, as well as manage emerging risks. Policymakers will need to focus on preparing its workforce and establishing an enabling environment for AI adoption by businesses and the government, including to answer the question of “What is required to achieve the aspirations of a brighter future enabled by generative AI?”

Download the report here

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