AI impact on UAE jobs: Firms restructure teams instead of mass layoffs
The rise of artificial intelligence (AI) is reshaping the workplace across the UAE and Gulf Cooperation Council (GCC), but most companies are restructuring roles rather than cutting jobs, according to a new study by recruitment agency Cooper Fitch.
The report, Redefining Work: AI & the Future of Talent, revealed that 55% of GCC-based firms are merging responsibilities to streamline workflows. Meanwhile, 60% of employers expect only minimal job impacts, with AI primarily affecting junior, administrative, data entry, and automation-driven roles.
“AI removes specific tasks rather than entire roles. It is more like a merger of roles and responsibilities than job cuts,” said Dr. Trefor Murphy, founder and CEO of Cooper Fitch.
Survey results showed that 31% of respondents anticipate some role eliminations in the next two years, mostly in repetitive functions such as transcription, admin support, junior analysis, and creative production. Only 7% reported job losses linked directly to AI adoption.
The study also highlighted a growing disconnect between employer expectations and current AI capabilities. While boards are pushing leadership to deliver higher efficiency and cost savings, employees believe AI is still in its early stages and not yet capable of meeting rising performance demands.
“There is optimism around AI, but it remains fragile without proper investment and upskilling. Employees often find they must review and adjust AI-generated outputs, which is not always more efficient,” Dr. Murphy explained.
The survey covered 350 organisations representing more than 200,000 employees in the UAE and GCC. It also found that most companies face a shortage of AI expertise, with efforts often fragmented across departments. Multinational corporations reported scaling AI at an enterprise level of 42%, compared to only 7% among GCC-owned businesses.
On investment, 41% of surveyed firms spend less than $500,000 annually on AI, while 19% allocate between $500,000 and $5 million. A smaller group, 8%, invests more than $5 million annually in AI adoption.
The findings underscore how AI is changing job structures in the Gulf region, pushing firms to rethink talent strategies, workflows, and long-term investment in technology.
