How AI will reshape the UAE over the next decade

Abu Dhabi is all set to host the world's largest AI expo, which kicks off today.  It's a fitting location given that the UAE is on track to become the world’s first completely AI-native government by 2027. 

The UAE laid the foundations for its AI ambitions in 2017, when it became the first country in the world to appoint a Minister of State for Artificial Intelligence. Since then, it has doubled down on its push to become a global technology leader.

At Ai Everything Abu Dhabi 2026, the AI-first Expo and Summit that begins today and runs through 7 October, the UAE Ministry of Investment will join global investors and hundreds of tech companies to explore the next phase of AI-driven advancement.

AI is expected to transform the UAE economy, reshaping businesses across sectors as varied as retail, manufacturing, industry, operations, cybersecurity and education.

As AI evolves from a technology that analyses data to one that can execute actions, the coming five years will bring even greater change, says Praneeth Vanteru, technical evangelist at IT and cybersecurity company ManageEngine.

He points to AI and agentic systems as drivers of new business models, faster decision-making and more personalised customer experiences.

‘The UAE’s focus on governance, data sovereignty, cybersecurity and local talent will be critical to sustaining competitiveness and creating long-term economic value,’ he says.

He adds that successful AI-powered enterprises start by identifying business problems and measurable outcomes, before prioritising repeatable processes, building connected data foundations and integrating AI into everyday operations.

‘Increasingly, AI agents will investigate issues, coordinate workflows, and execute tasks, improving efficiency and response times,’ he says, while cautioning that ‘scaling requires clear governance, accountability, security controls, and human oversight.’

Tolga Özdil, regional commercial director, Middle East, Turkey & Africa at consumer electronics giant ASUS, agrees that AI will move from experimental stages to mass enterprise adoption in the next five years, accelerating decision-making processes, personalising customer interaction, and efficiently handling applications.

According to Özdil, success requires a technological infrastructure that enables secure access to intelligent applications and embeds AI into employees’ everyday workflows.

The real, transformative opportunity for industry will come from moving AI beyond experimentation and embedding it into real operations. 

In asset-intensive industries in particular, industrial AI can turn operational data and context into intelligence and action, helping businesses improve productivity, make faster decisions, and ultimately create measurable value at scale.

‘The Middle East is making significant investments in infrastructure, energy and industrial capacity. Industrial AI can help organisations get more from those investments by improving asset performance, availability and resilience,’ says Rahul Misra, SVP & managing director - Middle East and Africa at global software firm IFS.

‘With the right operational context, AI can understand what is happening, determine the right response and help execute it.’

Misra says that ability to act has significant potential across critical infrastructure, energy, utilities, aviation, transport, defence, manufacturing and data centres.

But the UAE’s AI ambitions will depend on more than computing power and investment. AI is also set to reshape education, enabling more personalised learning while equipping students with the skills needed to work in an increasingly AI-driven economy. 

As those capabilities move from classrooms into the workforce, they should translate into higher productivity, faster innovation and the creation of new businesses.

“AI is moving into the core operating fabric of UAE organisations, and we believe education sits at the very start of that chain,” says Sofiane Benna, chief operating officer for technology operations at Ankabut.

The same talent base will ultimately determine how quickly UAE companies can turn AI investment into a commercial advantage, thereby shortening product development cycles and reducing costs.

The UAE has spent the past decade building AI infrastructure - the next phase is about whether AI can move out of pilots and into the everyday functioning of companies, industries and the workforce.