For MENA Leaders, GenAI Critical for Competitive Advantage

Business leaders in the region face readiness, privacy, and skilling challenges as they prepare to adopt GenAI within their organisations, according to research from e& and IBM.

By Maggie Mancini

A new study from e& and the IBM Institute for Business Value highlights transformative trends in AI adoption and opportunities poised to redefine digital transformation across the Middle East and North Africa (MENA).  

The report shows that the conditions for AI adoption in the MENA region are highly favourable, with 65% of MENA CEOs pushing their organisation to embrace GenAI—outpacing the global average of 61%. Key factors contributing to this momentum include robust government support, focussed research, investments in infrastructure, strategic upskilling, and cross-sector collaboration. Governments are particularly enthusiastic about AI due to the significant economic value it promises, further accelerating its integration across industries.  

While 54% of MENA CEOs recognise advanced GenAI as critical to gaining a competitive edge, the report reveals barriers, including challenges in technology readiness, data privacy, security, and talent development. These obstacles underscore the need for a strong focus on foundational capabilities—such as upskilling talent and scaling infrastructure and data systems to match regional ambitions.  

While CEOs across the region recognise the importance of digital infrastructure, confidence in its ability to support scaling and deliver new investments has sharply declined—from 82% in 2023 to 64% in 2024.  

Over half (54%) of tech leaders in the region believe their organisations have the necessary technology risk tolerance to successfully execute AI strategies—lagging the global figure of 63%. MENA CEOs cite organisational resistance to change from top management (41%) and employees (43%) as barriers.