The Gulf region is witnessing a surge in Artificial Intelligence (AI) investments, driven by the potential to contribute $320 billion to the region's economy by 2030. The rapid growth of AI is fueling concerns over energy intensity and greenhouse gas emissions, but Gulf countries are well-positioned to capitalize on the technology while reducing its environmental impact. With energy demand from AI, data centers, and cryptocurrencies set to double by 2026, the region's abundant solar energy resources present an opportunity to combine sustainability with computer power.

The UAE, Qatar, and Saudi Arabia are leading the charge in AI adoption, with Saudi Arabia investing heavily in the technology to diversify its economy. The country's "Vision 2030" strategy aims to reduce its reliance on oil and gas, and AI is expected to contribute 12% of its GDP by 2030, growing at an annual rate of 29%.

One significant area of focus is Arabic-language models, with the development of tools like Jais and ALLaM. Saudi Arabia's ALLaM will be hosted on Azure and IBM's Watson X platform, providing a competitive advantage in the global AI market. The region is also home to over half a dozen Arabic-based large language models in development, with various applications, from chat to governmental and corporate uses.

However, the development of AI also raises concerns over governance and regulation. Public perception and ethical considerations are critical as AI technologies shape the region's future. To address these concerns, policies like the Riyadh Charter for AI in the Islamic World and global frameworks for AI readiness are being developed. Experts agree that a solid regulatory framework is essential for the future of AI, ensuring responsible use, security, and fair competition.

Embracing the Future: Gulf States Bet on AI

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