Kyndryl, a leading provider of mission-critical enterprise services, recently released the United Arab Emirates findings from its second annual Readiness Report.
The data reveals a moment of both momentum and reflection — as businesses in the UAE report growing returns from AI investments while facing mounting pressure to modernise infrastructure, scale innovation efforts, reskill workforces, and manage risk in an increasingly fragmented regulatory landscape.
“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, Kyndryl UAE. “The findings of the Kyndryl Readiness Report reflect this momentum, showing how organisations across the UAE are accelerating their adoption of AI to match the nation’s vision”.
Last year’s report revealed a critical gap between perception and preparedness: while the majority of business leaders in the Middle East, including the UAE, believed their IT infrastructure was best-in-class, fewer felt it was ready for future disruption. While there has been momentum – that tension remains. This year:
- ROI pressure rising, but AI stuck in experimentation phase: 70% of UAE organisations report feeling more pressure to prove ROI on AI investments compared to last year. However, 66% say their innovation often stalls after the proof-of-concept, and 67% agree that there are foundational issues in their technology stack.
- Confidence continues to outweigh capability: While UAE organisations are eager to innovate, foundational challenges persist. 91% say they struggle to keep up with the pace of technological advancements, 26% cite the complexity of their technology environments as a barrier to scaling tech investments, and 24% struggle to align business and technology teams.
- AI driving workforce transformation, but skills gaps remain: 93% in the UAE say AI will “completely” transform jobs at their organisations within 12 months. Yet, 30% are concerned about how to upskill and reskill employees whose jobs are replaced by AI, 41% worry about the lack of core cognitive skills and 40% cite gaps in technical skills needed to harness AI’s potential.
- Cyber resilience top of mind: With 86% of the UAE organisations having experienced a cyber-related outage in the past year, cybersecurity has become a top priority. Yet, only 38% are implementing robust cybersecurity measures, and 35% are upgrading their IT infrastructure to mitigate business risks and strengthen resilience.
- Policy and compliance shaping infrastructure decisions: As UAE organisations scale their technology investments, 27% cite regulatory or compliance concerns as a barrier, underscoring the influence of policy on infrastructure strategy and innovation readiness.
Cloud is under pressure as geopolitical and regulatory disruption drive change
Many UAE organisations are revisiting their cloud infrastructure, prompted by new regulations and growing concerns about data sovereignty. 86% of UAE Business leaders express concerns about the geopolitical risks associated with storing and managing data in global cloud environments, and 68% have adjusted their cloud strategies in response – by investing in data repatriation, reassessing vendors, and shifting toward private cloud models.
To read the report, visit Kyndryl’s Readiness Report.
Image Credit: Kyndryl
