Being up to date with the latest technology and utilizing it for your business operations is a factor that contributes to entrepreneurial success. This is why in this article we will talk about latest abuzz in technological field i.e. Artificial Intelligence and its effects on businesses in Dubai.
Artificial intelligence or the ability of a digital machine to perform tasks intelligently is the key to successful business operations. Many people undermine its importance by limiting it to the future of software only but they do not realize how much Artificial intelligence can do for business enterprise these days.
Software developers have already started to develop and embed cognitive/ artificial intelligence into enterprise applications and according to research by IDC, this widespread incorporation of cognitive systems and AI across wide range of industries will generate worldwide revenues from 8 billion USD in 2016 to around 50 billion USD in 2020.
During the past few months, many governments have devised a new digital strategy for their country recognizing the importance of technological transformation. One such example is announcement by Sheikh Mohammed Bin Rashid Al Makhtoum, Ruler of Dubai i.e. to launch UAE Artificial intelligence Strategy whereby both public and private sectors will incorporate AI. Additionally, for the first time UAE Minister for Artificial intelligence has been appointed which depicts a strong belief on AI impact on future of UAE.
Dubai- A Hub for Innovation and Start-Ups
Dubai is an ideal place for business investment. It provides a feasible environment for new businesses that are developing unique data solving problems that are ripe for machine learning. Also there is an existing pool of talent in Dubai from around the world as the city attracts the best. Lastly, the government is actively modifying the rule of law to make investment and innovation in field of Artificial Intelligence more easy and reliable.
Fast Growing Economy with Young Workforce
The enterprise Artificial Intelligence market in Middle East and Africa is estimated to be 2million USD in 2016; according to Statista. This is not huge figure as compared to USA but it is expected that Middle East has lot of potential to overtake other regions in AI. This is because more than half of people in Middle East are under 30 according to Oxford Business Group. That is a huge advantage for fast growing economy of UAE where young, digitally savvy and diverse workforce is ready to embrace AI.
Initiation of AI Projects by Dubai Government
Saad Customer Service
Department of Economic development (DED) Dubai has initiated SAAD customer service with Smart Dubai and IBM in 2016 which answers business questions from business community regarding licensing and registration procedures for businesses in Dubai.
Middle East Bank Emirates NBD is developing AI customer services chat box named as EVA which will answer questions in English, much to the convenience of foreigners in Dubai.
Smart Dubai Government
Smart Dubai is an initiative by Dubai government to digitalize Dubai which will make it easier for people to live. Smart Dubai government is the resultant technology developed for smart Dubai project which put together AI roadmap for Dubai. Many business sectors are embracing AI particularly customer service, banking, finance, healthcare, food and ecommerce. Let’s have a look on AI impact on these sectors in the following part.
Health Care Sector
Healthcare sector can hugely benefit from artificial intelligence as different kinds of complex machines are required for variety of purposes such as early diagnoses of diseases to correct and effective treatment. We can expect major AI breakthroughs in this sector. Intelligent medical devices are being developed and utilized as well as healthcare facilities such as therapies are digitalized. It is expected that almost half of healthcare systems in UAE will implement some form of AI within next 12 months.
Banking and Finance sector
Finance sector is already benefitting from digital transformation. Banks are using chat box feature for advanced customer service, insurance holder to claim processing in order for streamline flow and to eliminate frauds. Investment managers are using AI tools to ask questions from people and then generate retirement strategy that befits their need and profile. Several firms are using AI for capital planning, credit scoring, direct lending, and natural language, graph processing for transaction check, abnormal financial behavior and to improve regularity compliance.
Small Business Enterprises (SMEs)
All the sectors will take impact of artificial intelligence. For example robots and automation will replace human tasks in food services industry especially fast food restaurants. Travel agents, auditors, bank accountants will be replaced with AI technologies.
In retail sector, online shopping is an emerging trend posing enormous potential for new businesses. Various online shoppers are providing same day delivery service and option to mix and match outfit. A famous fashion retailer known as Bebe have announced to close their physical stores worldwide and have decided to operate online only.
Young fashion designers in GCC are wisely utilizing their budget by having online presence through social media and offering cash on delivery and online bank payment method. These initiatives by enterprises as well as projects launched by UAE government are pointing towards a future where Dubai will be a global center for Artificial intelligence and robotics.
For further information on impact of artificial intelligence on business sectors in Dubai, contact us at KWSME. We provide business setup services to our clients for their company formation in Dubai and across UAE. Visit our website for further guidance.