Dell Technologies research shows AI momentum builds in the UAE

Technology

Dell Technologies research shows AI momentum builds in the UAE

Artificial intelligence is rapidly becoming central to business strategy in the UAE, with new research from Dell Technologies indicating strong momentum in adoption, returns and long-term planning, even as skills and infrastructure challenges persist.

According to Dell Technologies’ State of Innovation and AI Survey, 92 per cent of UAE enterprises now view AI and generative AI as a key part of their business strategy, while 88 per cent report tangible returns on investment and productivity gains from early AI deployments. The study surveyed 2,850 business and IT decision-makers globally, including 50 respondents from the UAE.

AI adoption accelerates across enterprises

The research highlights a clear shift from experimentation to strategic integration. Nearly two-thirds (64 per cent) of UAE organisations are prioritising data readiness for AI as a top IT initiative, underscoring the importance of strong data foundations to support advanced analytics and automation.

At the same time, on-premises AI is gaining traction. Around 74 per cent of businesses plan to deploy AI through software running locally on AI-enabled PCs over the next 12 months. This reflects growing concerns around data sovereignty, compliance and control, prompting organisations to favour localised AI processing.

Sustainability has also emerged as a major driver. About 92 per cent of UAE companies recognise AI as a crucial tool for optimising resource use and improving environmental performance, with applications ranging from energy-efficient data centres to smarter workload management.

Scaling AI remains a challenge

Despite strong adoption signals, the research shows that scaling AI across organisations remains difficult. Around 78 per cent of UAE businesses struggle to integrate AI across all operational areas, while 30 per cent are still in the early to mid-stages of their AI journey.

Key barriers include skills shortages, security concerns and infrastructure readiness. Notably, all UAE respondents surveyed said their teams lack the skills required to fully leverage AI, with 66 per cent citing limited knowledge around the safe and effective use of generative AI.

Security remains another major concern. About 72 per cent of organisations worry about exposing sensitive data and intellectual property to third-party AI tools, up from 64 per cent last year. Additionally, 80 per cent say balancing innovation with cybersecurity risk mitigation is increasingly challenging.

Infrastructure limitations further complicate adoption, as many existing IT environments are not designed to handle AI workloads that demand higher processing power, specialised hardware and enhanced data protection.

Linking AI innovation with sustainability

The study points to a growing alignment between AI strategies and sustainability goals. UAE organisations are exploring AI-driven approaches to improve energy efficiency, reduce idle workloads and shift inferencing to edge environments. Collaboration is playing a key role, with 82 per cent of respondents highlighting the importance of external partnerships in achieving circular IT and sustainable technology practices.

Dell Technologies is supporting these efforts through AI infrastructure designed to balance performance with energy efficiency, including advanced cooling solutions and energy-aware system architectures.

Commenting on the findings, Walid Yehia, Managing Director, South Gulf at Dell Technologies, said the survey reflects a significant shift in mindset among UAE businesses. He noted that organisations are moving beyond pilot projects to embed AI at the core of their strategies, but added that realising AI’s full potential will depend on addressing workforce upskilling, security and collaborative implementation.