Gulf Businesses Boost AI Investment Amid Security Risks
A new survey finds that companies in the region are prioritizing automation while struggling to manage emerging cyber threats.
Updated on Oct. 20, 2026 in Artificial Intelligence
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Sixty-two percent of businesses in the Gulf are increasing their investment in artificial intelligence and automation. Despite this growth, many firms recognize that poor AI implementation and a lack of governance remain significant business risks.
Why it matters
Decision makers view AI as the region's single biggest opportunity over the next five years, yet many organizations lag in adopting the cybersecurity defenses needed to protect against AI-powered threats.
Thirty-five percent of businesses identify AI governance as an underestimated emerging risk, while 28% flag cybersecurity as a primary concern. Threat actors are already using deepfake technology to impersonate executives for financial fraud.
The players
UAE
The United Arab Emirates is a primary hub for business investment and digital transformation in the Middle East.
Saudi Arabia
Saudi Arabia is a key regional economic power currently undergoing a rapid shift toward automated business practices.
The details
Companies are grappling with sophisticated cyber attacks where hackers use AI to accelerate operations and exploit system vulnerabilities. Organizations in the UAE and Saudi Arabia are increasingly seeking external governance expertise to manage these complex digital risks.
Timeline
Businesses view AI as the region's biggest opportunity over the next five years.
Nearly half of UAE decision makers expect to need external AI governance expertise within the next 12 months.
The Tech Race
The push toward AI automation follows the broader trajectory of regional modernization, yet it exposes companies to sophisticated fraud techniques. This shift forces a transition away from legacy authorization systems toward advanced governance protocols that can identify deepfake attempts.
The adoption of these technologies will likely lead to stricter internal verification processes for employees handling sensitive company data. Workers should expect increased training requirements focused on identifying deepfake technology and sophisticated phishing attempts.
The takeaway
Businesses must balance their pursuit of AI-driven efficiency with robust governance strategies to mitigate the threat of synthetic fraud. Implementing external oversight and continuous security training is essential for maintaining operational integrity in an automated landscape.
Further reading
Learn more about the latest developments in Artificial Intelligence.
Source note: This article includes information reported by Consultancy-me.
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