TLDR: A new study by Boston Consulting Group reveals the GCC region has cemented its position as a global leader in AI adoption, ranking second worldwide after the US. The region demonstrates high frontline GenAI usage, strong leadership support, and significant enterprise-wide transformation, though it also faces challenges like ‘shadow AI’ use.
The Gulf Cooperation Council (GCC) region is rapidly emerging as a prominent global hub for Artificial Intelligence (AI), securing the second position worldwide in AI adoption, just behind the United States. This significant advancement is highlighted in a recent study by Boston Consulting Group (BCG) titled ‘From Pilots to Progress: AI at Work in the GCC’, published on November 5-6, 2025.
The study, which surveyed respondents from Kuwait, Qatar, Saudi Arabia, and the UAE, ranging from executives to frontline employees, underscores the region’s robust policy direction, substantial corporate investment, and a growing emphasis on AI skills development. According to the research, approximately 78% of frontline workers in the GCC regularly utilize generative AI (GenAI), a figure that stands 27 percentage points above the global average. This widespread adoption reflects a strong regional commitment to integrating AI into daily operations.
Optimism and confidence regarding AI’s impact are also notably high within the GCC. About 58% of respondents expressed optimism about AI’s role in the workplace, marking a nine-point increase from the previous year, while 45% reported increased confidence in their ability to effectively use the technology. These figures surpass global benchmarks, indicating a clear shift from experimental phases to scaled deployment across the region.
Leadership support is a critical distinguishing factor. The BCG study reveals that 55% of frontline employees in the Gulf receive clear guidance from senior management on AI adoption, which is more than double the global rate of 25%. AI usage is even higher among managers and executives, reaching 90% and 92% respectively, compared to global averages of 78% and 88%. This top-down emphasis is instrumental in driving companies beyond initial productivity pilots towards comprehensive, long-term transformation.
Dr. Lars Littig, Managing Director and Partner at BCG, stated, ‘The GCC is emerging as a global leader in AI deployment, with high frontline adoption and leadership support nearly twice the global average. For companies and public sector entities alike, this signals a clear mandate: strategic investment in AI, paired with strong leadership and training, offers a blueprint for enterprise-wide transformation.’
The region is also at the forefront of redesigning workflows. Nearly two-thirds (64%) of surveyed companies are actively re-engineering end-to-end workflows to reimagine functions around AI. Furthermore, 52% of respondents understand AI agents, compared to 33% globally, and a significant 91% believe these autonomous systems will be central to future performance.
Tangible productivity gains are already evident. Over half (53%) of GCC employees who use AI report saving more than an hour daily. This saved time is being reallocated to various tasks, including performing more tasks (58%), working on strategic initiatives (38%), finishing work earlier and with better quality (58%), and pursuing professional development (38%). Rami Mourtada, Partner and Director at BCG, added, ‘AI is undoubtedly already a powerful driver of performance, which will only get more embedded in organizations, enhancing workflows and how teams operate and collaborate.’
However, the rapid pace of adoption also presents risks. The study highlights a higher-than-average threat of ‘shadow AI,’ with 63% of respondents indicating they would use AI tools even without formal company approval, compared to 54% globally. Additionally, only half of employees receive clear guidance on how to best utilize the time saved through automation, suggesting a need for refined governance and talent frameworks as AI use scales.
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The report concludes that the next phase of AI maturity in the GCC will necessitate responsible deployment, large-scale capability-building, and deeper alignment between leadership vision and workforce readiness. With national AI strategies advancing across the UAE, Saudi Arabia, and Qatar, the region’s early-mover advantage is expected to strengthen as public institutions and large companies move towards agentic AI, autonomous workflows, and innovative digital business models.
