Artificial intelligence is no longer a future concept in the UAE. It is already changing how companies operate, how employees work, and how people think about job security and career growth. New findings from Kyndryl and PwC show the country has reached a critical moment, where AI adoption is delivering gains but also exposing gaps in skills, systems and readiness.
The UAE’s ambition to become a global AI leader is clear, from AI-powered government initiatives to large-scale digital transformation across industries. What is becoming equally clear is that scaling AI comes with real pressure on businesses and workers alike.
AI adoption is accelerating, but scaling remains a challenge
According to Kyndryl’s UAE Readiness Report, 93 percent of business leaders expect AI to significantly transform jobs within their organisations over the next year. Many companies have moved beyond experimentation and pilot projects, yet expectations are rising quickly.
Around 70 percent of organisations say they now feel pressure to demonstrate a clear return on AI investments. Despite this urgency, two-thirds admit their AI initiatives often stall after early trials. Legacy systems, fragmented IT environments and infrastructure not built for scale continue to slow progress.
Leadership confidence remains high, but teams are feeling the strain. More than 90 percent of executives say they struggle to keep pace with rapid technological change, while coordination between business functions and technology teams remains a weak point.
Skills gaps raise concerns about workforce readiness
As AI reshapes roles, questions are growing around workforce preparedness. Nearly one in three organisations worry about how to reskill employees whose jobs may be affected by automation.
Technical skills gaps are emerging alongside shortages in problem-solving and critical thinking capabilities. While AI promises productivity gains, businesses are increasingly aware that technology alone is not enough without sustained investment in people.
For many UAE residents, the impact of AI is already tangible, even as companies remain unsure how quickly their workforce can adapt.
Employees are already using AI at work
PwC’s Middle East Workforce Hopes and Fears Survey shows workers are not waiting for formal strategies to catch up. Three in four employees across the region have used AI tools in the past year, with daily use of generative AI exceeding global averages.
Most workers view AI positively. Many say it improves productivity, enhances creativity and helps them deliver better-quality work. Adoption is strongest among millennials and Gen Z, who are often driving experimentation from within organisations.
At the same time, enthusiasm is tempered by caution. Job security has emerged as the top concern for employees, overtaking salary growth. Fewer workers plan to ask for pay rises in the coming year, reflecting a more careful and uncertain outlook.
Cloud strategy and cybersecurity risks grow
As AI usage expands, infrastructure decisions are becoming more complex. Kyndryl’s findings highlight rising concern around data sovereignty and geopolitical risk, prompting many UAE organisations to rethink cloud strategies and keep sensitive data closer to home.
Cybersecurity remains another pressure point. Most firms reported experiencing at least one cyber-related outage in the past year, yet many acknowledge their defences are still lagging behind the pace of AI adoption.
Without stronger cyber resilience, the benefits of AI risk being undermined by operational and reputational exposure.
What the next phase of work will demand
Together, the reports point to a workforce that is engaged, adaptable and eager to learn, but increasingly focused on stability and clarity. Employees want transparency around how roles will change, access to continuous learning, and reassurance that AI adoption will expand opportunities rather than eliminate them.
For businesses, the challenge is no longer whether to adopt AI, but how to modernise systems, close skills gaps and protect employee wellbeing at the same speed that technology evolves.
AI is moving fast in the UAE. How effectively organisations balance innovation with people, infrastructure and trust will shape the future of work across the country.