SDAIA: Generative AI To Transform Global Business And Economy

Riyadh, June (پاکستان پوائنٹ نیوز ‎‎‎ 21 يونيو 2025ء) The report comes amid unprecedented technological advancements reshaping business operations worldwide. Generative artificial intelligence (AI) has emerged as a pivotal innovation, now integrated into the practices of individuals, organizations, and governments alike due to its ability to simulate human intelligence and handle both routine and complex tasks — from automating workflows to ensuring product quality and enhancing workplace productivity.

Generative AI refers to a set of technologies capable of learning patterns from massive datasets to generate original content in various forms, including text, images, audio, video, code, simulations, and protein sequences. Unlike traditional AI, which is limited to predictions, classifications, and recommendations, generative AI excels in handling more creative and complex tasks.

According to Deloitte estimates, generative AI can reduce operational costs by up to 30% through task and job automation. A McKinsey survey of over 1,300 companies found that human resources departments saw the greatest cost savings — ranging between 10% and 37% — while supply-chain departments reported profit increases exceeding 6% in some cases.

IDC’s 2024 report predicts that global investment in generative AI will grow at a pace exceeding the overall AI market, with spending projected to reach $202 billion (SAR 758.7 billion) by 2028. This would account for 32% of global AI spending, which is expected to hit $632 billion (SAR 2.4 trillion).

In the Gulf region, a 2024 McKinsey study of 140 public and private entities found that three-quarters of participants already use generative AI in at least one domain—particularly in sales, marketing, and software engineering—due to the high value it offers. The results showed that 57% of organizations allocate 5% of their digital budget to generative AI, while 50% have a clear roadmap for scaling high-priority use cases.

The study projects a significant transformation in business and economic landscapes driven by generative AI, contingent on institutional and governmental adoption. It outlines various promising scenarios, accompanied by challenges that require informed and strategic responses.

Globally, the adoption of generative AI is accelerating, with expectations that 80% of organizations will integrate related solutions by 2026. Additionally, the development of specialized AI models is expected to reach 50% by 2027, and more than 100 million individuals may be using AI-powered assistants.

The report is part of SDAIA’s ongoing efforts to disseminate expert knowledge, raise public and technical awareness of generative AI applications, and keep pace with the rapid global evolution in this vital sector.