UAE organisations have demonstrated significant commitment to AI adoption with 105% year-on-year increase in AI spending, yet execution gaps persist according to new research from ServiceNow's Enterprise AI Maturity Index. Despite this substantial investment increase, UAE organisations achieved an AI maturity score of 48 out of 100, representing a 13-point year-on-year increase but highlighting the shortcomings that must be addressed as organisations move from early experimentation toward more advanced execution. The research shows that while UAE organisations have built the financial and strategic commitment to AI, the ones pulling ahead are moving from AI pilots to AI orchestration, connecting legacy systems, data, governance, and AI agents in one control tower.
Dubai Chambers and India's National Association of Software and Service Companies (NASSCOM) have signed a memorandum of understanding to advance cooperation in Agentic AI and support the growth and expansion of Indian companies specialising in these technologies in Dubai. According to reports from Dubai Media Office, the agreement aims to help Indian companies specialising in Agentic AI and deep technology establish and scale operations in Dubai by connecting them with promising business opportunities and the emirate's wider innovation and partnership ecosystem. The partnership is specifically designed to foster cross-border collaboration between India and the UAE, with Dubai Chambers and NASSCOM working together to build strategic partnerships among companies, investors, entrepreneurs and other stakeholders across the Agentic AI innovation ecosystems in Dubai and India.
NASSCOM represents India's $315 billion technology industry and has more than 3,500 member companies, ranging from startups to multinational technology firms. According to the partnership announcement, the agreement comes as Dubai seeks to position itself as a global hub for the digital economy and future industries. However, new research reveals significant implementation challenges in the UAE market, with only 14% of organisations having replaced legacy systems with integrated platforms, resulting in AI deployment across fragmented, siloed workflows rather than a unified operational backbone. Additionally, more than three-quarters (77%) of UAE executives cite inadequate data accuracy, access and management as a major barrier to AI adoption, reinforcing the importance of modernising data management and integration as organisations scale AI across the enterprise.
Currently, more than half (57%) of UAE organisations have implemented agentic AI, but only 7% have used it to build autonomous workflows, with AI still primarily helping employees work more efficiently rather than transforming business operations. The research suggests that organisations are approaching autonomous AI deployment cautiously as they work to establish the governance, trust and operational foundations needed to scale it safely. In contrast, organisations with the highest AI maturity take a broader approach, establishing shared AI strategy, modernising data integration, deploying autonomous AI workflows, and investing in continuous workforce upskilling. These businesses achieve an average AI return on investment of 160%, rising to a projected 194% within two years, while being 5.6 times more productive, 2.7 times more successful at scaling AI and 2.6 times more effective at managing risk.
Dubai Chambers established its Executive Committee for Agentic AI in June to accelerate adoption of the technology among businesses and strengthen the private sector's readiness for rapid technological change. As reported by Dubai Media Office, the committee's responsibilities include approving specialised training tracks in Agentic AI, designing and establishing incubators for Agentic AI companies, and supporting the development of companies specialising in Agentic AI solutions. The committee also promotes knowledge sharing and capacity building within Dubai Chambers, helping to strengthen private sector competitiveness and reinforce Dubai's leadership in adopting future technologies. According to ServiceNow's research, while the UAE government has created many conditions for AI leadership, the challenge for enterprises now is to bring the same discipline and consistency into their own organisations, focusing on operationalising AI rather than simply investing in new technologies.
