Artificial intelligence adoption among businesses in the UAE has increased sharply over the past year, with 72% of companies now using AI, up from 53% a year earlier, according to the latest report from Amazon Web Services (AWS) and the UAE Artificial Intelligence Office.
The increase represents a 19-percentage-point rise in AI adoption and highlights how quickly AI is moving from experimentation to wider business use across the country. The findings are part of the Unlocking the UAE’s AI Potential 2026 report, developed by research firm Strand Partners in collaboration with AWS and the UAE Artificial Intelligence Office.
The report found that 85% of companies using AI said it has accelerated their digital transformation. It also predicts that this acceleration will continue in the coming years.
According to Dr. Abdelrahman Al Mahmoud, Director at the UAE Artificial Intelligence Office, the UAE government recognizes AI's significance as an enabler of economic development and quality services. He added that the focus remains on creating a conducive environment for innovation and transformation.
The developments come amid continued infrastructure growth in the UAE, helping the country meet its AI goals. According to AWS, it will invest up to AED 20.1 billion (USD 5.47 billion) in its Middle East (UAE) Region until 2037. This investment is expected to contribute AED 41 billion (USD 11.16 billion) to the UAE economy.
Cloud infrastructure is increasingly becoming a foundation for this growth, giving enterprises access to the computing power and AI services needed to deploy AI.
Chris Erasmus, General Manager, UAE, RoMEANAR at AWS, said enterprises are moving from whether to use AI to how to use it more responsibly.
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According to the report, UAE companies including Property Finder, Virgin Mobile UAE, The ENTERTAINER and Careem are already deploying AWS cloud and generative AI technologies to improve operational performance and reshape customer experiences.
The expansion is also increasing the focus on data sovereignty and regulatory compliance. AWS and e& enterprise have launched the AWS UAE Sovereign Launchpad, endorsed by the UAE Cybersecurity Council, to give government entities and enterprises greater control over their data while meeting compliance requirements. AWS is separately supporting sovereign cloud and AI capabilities through a USD 1 billion investment with e&.
The report recognizes talent as another essential ingredient in driving AI adoption. The AI Nation, Afaaq Program from AWS aims to offer 30,000 UAE residents free AWS training. AWS partners with MBZUAI and sponsors Qudwatech, which is a mentoring program designed for Emirati women in the tech sector.
The report identifies four main priorities to sustain momentum: safe, secure AI adoption through scalable cloud computing; a regulatory environment that stimulates innovation; addressing the skills shortage; and increased access to funding for AI-first ventures and SMBs.