AI technology adoption: Over the past 12 months, Saudi Arabia has led the world in the adoption of artificial intelligence. With leaders demonstrating a strong interest in generative AI. The UAE is next in line.
Financial institutions in Saudi Arabia and the UAE are among the global leaders in investing in AI technology, BaaS approach, and embedded financial services, despite economic constraints, according to the annual Finastra global survey.
Embracing the AI Technology Revolution
As per the results of the “Financial Services: Local Community Opinion Survey 2023,” approximately 64% of Saudi Arabian and nearly 87% of UAE institutions have stated that their country’s economic conditions have hindered their capacity to make technological investments.
In line with the responses of 91% of participants in Saudi Arabia and 90% in the United Arab Emirates, open finance provides a wider array of financial services. However, they also emphasise the necessity for increased backing from regulatory bodies.
The most recent study from Capgemini Research, “The Art of Software: The New Path to Value Creation Across Industries,” claims that software is redefining the next chapter in business history and will contribute significantly to revenue by 2030.
Companies expect software-based revenues to increase from 7% in 2022 to 29% by 2030, according to the report. Software and technology that depends on software, like the cloud, the Internet of Things, high-performance networks (like 5G), artificial intelligence (machine learning), and other technologies, help foster innovation, product and service research and development. Creating personalised customer experiences, launching new revenue streams and business models, and cutting costs in a variety of industries.
Preparing for the Future
Research indicates that businesses in all sectors are redefining themselves as software companies. And moving away from the conventional hardware-based business model. While 25% of all businesses are currently “software companies,” 32% more expect to be in the next three to five years.
Concerning the report, companies in a variety of industries stand to gain significantly financially from successful software-based transformation by 2030. The communications industry is leading the way in this trend. Next in line are the banking and insurance sectors. Followed by the life sciences, automotive, and projections for revenue growth of 32%, 33%, and 31%, respectively.
The study claims that companies are assisting engineers in finishing software development life cycles more quickly. By utilising generative artificial intelligence along with other technologies. And to help them with software development due to the growing demand for smart products and services. Software engineering time savings will rise from 15% to 43% in the next three years, according to the study. Thanks to generative AI tools.
Based on the study, seven out of ten organisations intend to use generative AI to supplement and enhance their existing software engineering within the next year. These tools are expected to help generate 37 per cent of code over the next three years. Only 28% of the organisations polled indicated that they do not plan to use generative AI to support software engineering in the next 12 months.
