How AI is changing jobs in the UAE, pressuring businesses, workers

Dubai: AI is no longer a future promise in the UAE. It is already shaping how people work, how companies invest, and how residents think about their careers.

Two recent reports — from enterprise technology firm Kyndryl and consulting giant PwC — suggest the country has reached a turning point. Businesses are starting to see returns from artificial intelligence, while employees across the region are using AI tools in their daily jobs. At the same time, cracks are emerging around skills, infrastructure and long-term readiness.

“The UAE has set out one of the most ambitious AI agendas in the world, from its drive to build an AI-powered government to the transformation of key industries and the development of an AI-ready workforce,” said Raoul Van Engelshoven, Managing Director of Kyndryl UAE.

AI gains, scaling pains

According to Kyndryl’s UAE Readiness Report, 93% of business leaders expect AI to transform jobs in their organisations within the next year. Many companies have moved beyond experimentation, yet the pressure to prove results is rising fast.

About 70% of UAE organisations say they feel increased pressure to show a clear return on AI investments. Even so, two-thirds admit their AI projects often stall after early pilots. Foundational technology issues remain a major hurdle, with many firms saying their systems are not yet built to scale innovation.

Bosses remain confident, but the pace of change is stretching teams. More than 90% say they struggle to keep up with rapid technological advances, while others point to complex IT environments and weak coordination between business and tech teams.

For UAE residents, the impact of AI is becoming tangible. While companies expect roles to change quickly, many are unsure how ready their people are.

Kyndryl found that nearly one in three organisations worry about how to reskill employees whose roles may be affected by AI. Gaps in technical capabilities and problem-solving skills are already emerging, raising concerns about whether the workforce can keep pace with automation.

Workers embrace AI

PwC’s Middle East Workforce Hopes and Fears Survey shows employees are not waiting for change — they are already using AI. Three in four workers across the region have used AI tools in the past year, with daily use of generative AI higher than global averages.

Most employees see AI as a positive force. Many say it has improved productivity, work quality and creativity. Younger workers, especially millennials and Gen Z, are driving adoption and often lead experimentation inside organisations.

“As employees confidently embrace change and build new capabilities with AI, they also want to feel secure and supported,” said Randa Bahsoun, Partner at PwC Middle East.

Yet optimism is paired with caution. Job security has become the top priority for workers, outweighing pay rises. Fewer employees plan to ask for higher salaries next year, reflecting a more careful outlook.

Cloud and cyber risks

As AI use grows, infrastructure decisions are becoming more sensitive. Kyndryl found widespread concern about data sovereignty and geopolitical risk, pushing many UAE organisations to rethink cloud strategies and keep more data closer to home.

Cybersecurity is another weak spot. Most firms experienced a cyber-related outage in the past year, yet many admit their defences are still catching up.

“Organisations that provide clarity on how roles will evolve and expand access to learning will be the ones that retain talent in a fast-changing labour market,” Bahsoun added.

What comes next

Together, the findings point to a workforce that is engaged, adaptable and ready to learn — but increasingly focused on stability. AI is moving fast in the UAE. Whether businesses can modernise systems, build skills and protect wellbeing at the same pace may define the next chapter of work in the country.