AL-KHOBAR: For many Gulf companies, the slow adoption of artificial intelligence has less to do with the technology itself and more to do with leadership’s reluctance to embrace it fully. Across boardrooms in the region, executives present working AI prototypes, yet hesitation often follows. Some directors question whether the systems carry too much risk, while others raise concerns over audit exposure. The outcome is typically the same: delays, uncertainty, and projects left unfinished.
Two recent studies reflect this trend. A McKinsey report released in January 2025 found that although nearly all firms are investing in AI, only 1 per cent consider themselves genuinely AI mature. The main obstacles cited were leadership hesitation and a lack of preparedness to manage potential risks. Similarly, research from HFS shows that many organizations remain trapped in “pilot purgatory,” unable to scale beyond proof-of-concept demonstrations due to internal resistance and barriers to innovation.
According to Yousef Khalili, global chief transformation officer at AI solutions provider Quant, this pattern has become all too common. It is a key reason why AI adoption often stalls in “pilot mode. AI isn’t failing because of the technology,” Khalili told Arab News. “It’s failing because boards are hesitant, teams lack clarity, and there is no shared definition of success.”
With extensive experience leading digital transformation efforts across the Gulf, including senior roles at Cisco, Microsoft, and the Saudi National Digitisation Strategy Committee, Khalili’s views are informed by years of firsthand exposure to boardroom decision-making.
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