Technology Partners in UAE Predict Major Revenue Shift to AI Technologies

Technology

Technology Partners in UAE Predict Major Revenue Shift to AI Technologies

Key Highlights:

26% of UAE partners forecast that 76-100% of their revenue will be AI-driven in the next 4-5 years.
Infrastructure, cybersecurity, and customer experience are identified as the primary drivers of AI demand.
UAE partners are heavily investing in upskilling to capitalize on AI opportunities.

DUBAI, United Arab Emirates, December 23, 2024 – A new study by Cisco, the global leader in networking and security, has revealed a transformative trend in the UAE's technology sector, with artificial intelligence (AI) poised to become a dominant revenue driver for IT partners. The Cisco Global AI Partners Study, titled Bridging the Customer AI Readiness Gap – The Opportunities Ahead for Partners, highlights significant expectations for AI-driven revenue and outlines the industry's readiness to embrace the shift.

According to the study, 26% of UAE IT partners predict that 76-100% of their revenue will originate from AI technologies within the next four to five years. Additionally, 43% of UAE partners anticipate a 75% increase in AI demand in the same period. The report identifies infrastructure (26%), cybersecurity (26%), and sustainability management (11%) as the leading sectors driving AI technology adoption.

“Infrastructure, cybersecurity, and customer experience are cornerstones of this AI transformation,” said Ossama Eldeeb, Regional Director for the Partner Organization in the Middle East and Africa, Cisco. “By investing in readiness and innovation, our partners can drive adoption, align with regional ambitions, and empower businesses to fully harness AI's potential.”

AI Revenue Growth: From Short to Long Term

While 37% of UAE partners currently see AI contributing 26-50% of their revenue annually, this number is expected to grow significantly in the coming years.

Challenges and Investments in AI Readiness

The study highlights the confidence of UAE partners in AI deployment capabilities, including:

Building scalable AI-ready infrastructure.
Ensuring sufficient GPU resources for AI projects.
Managing data sovereignty and privacy laws across regions.

However, challenges persist, with partners citing inexperience in deploying new technologies (69%), lack of systems knowledge (51%), and a shortage of AI-specific tools (46%) as significant barriers.

To address these, UAE partners are making substantial investments in employee upskilling. Nearly 74% of partners are conducting internal training or collaborating with external vendors to enhance AI-related competencies.

Global Insights and Regional Implications

The Cisco study aligns with its AI Readiness Index, which revealed global gaps in infrastructure, data management, and governance for AI adoption. By focusing on partner enablement, Cisco aims to bridge these gaps and support businesses in achieving AI readiness, particularly in the UAE, where innovation is a national priority.