UAE Businesses Embrace Cloud Computing and AI to Enhance Performance, SAP Survey Reveals

UAE enterprises are rapidly advancing their adoption of cloud computing and artificial intelligence (AI), according to a YouGov survey commissioned by SAP. The study revealed that 67% of UAE businesses have already migrated their core business functions to the cloud, with an additional 22% planning to make the shift within 15 months.

Key Findings

• Cloud Computing Leading the Way:
  Hosting enterprise resource planning (ERP) solutions on the cloud is enabling companies to unlock real-time data access and scalable computing power. This creates a seamless environment for integrating advanced AI models into business processes.

• AI Adoption Across Functions:
  Currently, AI is being utilized in marketing and communications (42%), customer service (40%), sales (38%), and accounting and finance (38%). However, its usage is less prevalent in supply chain management and product development (both at 27%).

• Data Quality Challenges:
  Only 65% of respondents expressed high confidence in their data quality, a key requirement for effective AI-driven decision-making. This proportion is expected to improve as more businesses migrate to cloud platforms like SAP S/4HANA, which facilitate clean, organized data for reliable AI insights.

Addressing AI Implementation Challenges

The survey highlighted significant barriers to AI implementation, including system integration issues and a lack of skilled personnel (both cited by 43% of respondents), as well as concerns over privacy, security, and costs (40%).

SAP is addressing these challenges through solutions like its embedded AI-powered co-pilot, Joule, which simplifies workflows, provides on-demand insights, and ensures robust privacy protections. Additionally, SAP is fostering AI expertise through initiatives such as the SAP Dual Study Program and SAP Young Professionals Program, equipping emerging talent with hands-on experience in AI-infused solutions.

AI's Role in Business Transformation

"AI's potential to enhance operational efficiency and streamline processes across all business areas is significant," said Marwan Zeineddine, Managing Director of SAP UAE. "By embedding AI across our enterprise cloud portfolio, we are making AI more accessible, enabling businesses to overcome implementation challenges and drive innovation.”

Zeineddine also noted that AI is becoming an integral part of SAP’s global business strategy, with 30% of Q3 2024 deals globally involving AI-based use cases. This trend is expected to grow in the UAE, as businesses increasingly leverage SAP’s Business AI solutions for industry-specific needs.