UAE AI spend surges, execution lags behind
ServiceNow report finds gaps in UAE AI rollout, few use autonomous AI
#UAE #adoption - UAE organisations increased AI spending by 105 percent year-on-year, but scored just 48 out of 100 on ServiceNow’s Enterprise AI Maturity Index, pointing to a widening gap between investment and execution. 57 percent of UAE organisations have implemented agentic AI, but only 7% have used it to build autonomous workflows, with AI mostly still helping employees work faster rather than changing how businesses operate. The ServiceNow report is based on a ThoughtLab survey of 100 UAE executives among 4,500 globally.
SO WHAT? - UAE organisations expect AI to make up almost a fifth of total IT budgets by 2027. However, the research finds that fragmented legacy systems and poor data readiness are holding execution back. It suggests the UAE’s well-documented government-level AI push has outpaced what enterprises at large have managed to build internally, and that closing the gap will take integration and governance work rather than increased investment.
KEY POINTS:
American cloud software company ServiceNow has published its 2026 Enterprise AI Maturity Index. The report is based on a ThoughtLab survey of 100 UAE executives among 4,500 globally.
The Index measures maturity across seven pillars:
AI vision, strategy, and leadership
Management and culture
AI governance
Data modernization
AI-enabled workflows
Talent and skills
Driving value from AI
UAE organisations posted an AI maturity score of 48 out of 100, up 13% year-on-year. AI spending increased 105% and organisations surveyed expect AI to account for almost one-fifth of total IT budgets by 2027.
Just 14% of UAE organisations have replaced legacy systems with platforms integrating AI. This points to AI being deployed across fragmented, siloed workflows, rather than a unified operational backbone.
More than three-quarters (77%) of UAE executives cited inadequate data accuracy, access and management as a major barrier to scaling AI across their organisations.
Only 16% of UAE organisations were found to have implemented AI testing, auditing and risk management processes. The report identifies this gap as a key constraint on scaling AI safely.
The UAE’s government-led strategy and regulatory leadership have given organisations a genuine head start. Businesses pulling ahead are moving from AI pilots to full orchestration across legacy systems, data, governance and AI agents.
Globally, organisations with the highest AI maturity achieve an average AI return on investment of 160%, rising to a projected 194% within two years. They are also 5.6 times more productive and 2.7 times more successful at scaling AI than lower-maturity peers.
The Enterprise AI Maturity Index 2026 surveyed 4,500 executives and 2,000 employees across 19 countries and 12 industries.
[Written and edited with the assistance of AI]
Source: ServiceNow
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Read more about AI adoption in the UAE:
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AI activity is pushing Gulf networks toward breaking point (Middle East AI News)
Many UAE firms unprepared for AI risk (Middle East AI News)
Saudi, UAE outpace global peers in Agentic AI deployment (Middle East AI News)
UAE organisations lead world on AI agent adoption, (Middle East AI News)