The AI Innovative Adoption Model in the MENA Region: A Policy & Business Perspective
During the winter of 2003-2004, the American University in Cairo, alongside a talented team of four computer science graduating seniors, unveiled "XMine"—a cutting-edge XML data mining software. This powerful tool automates the process of discovering and analyzing hidden insights from data stored within XML files, employing advanced data mining algorithms and artificial neural networks. Reflecting on the final graduation project assessment, our professor posed a pivotal question: "What one aspect would you enhance in XMine with an extra month for refinement?" My instantaneous response, echoing like a refrain from the computing past, was succinct: "Data. Feed XMine with more data." The simplicity underscored the critical role of data and how it empowers automated systems to generate heightened and more efficient results. Though two decades have elapsed since that moment, the surge in AI tools today prompts lingering questions about data—how it's gathered, organized, classified, protected, and the diverse sources and languages it encompasses.
In the dynamic landscape of the Middle East and North Africa (MENA) region, with over 55% considered part of the younger generation (the youngest region in the world) and a 65% Internet adoption rate, the trajectory of AI adoption follows the footsteps of Internet success stories in the region over the last two decades. Quoting H.E Omar Sultan Al Olama, the UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, “Yes, we did not invent airplanes, but we disrupted the aviation industry and today we have world class airlines in the UAE.” AI regional innovative adoption models are emerging on the horizon, taking diverse forms, and welcoming new entrants, guided by a network of different stakeholders, and most importantly an inclusive governance structure. The aim is to ensure a level playing field for all, mirroring the principles that underpinned the earliest success of Internet adoption in the region. The future of adopting AI tools in MENA holds immense promise, with various stakeholders collaborating to shape a landscape that fosters innovation, growth, and inclusivity.
MENA Internet Success Stories
The rapid adoption of the Internet and its applications have ushered in a transformative era across various facets of life in the MENA region. The key factors contributing to the regional success in Internet adoption include visionary leadership, fostering open markets, a robust policy and legal framework regulating the digital industry, advanced connectivity and infrastructure, investment-friendly ecosystems, and a tech-savvy generation nurtured through startup incubators and responsible investment funds. An illustrative testament to this progress is the acquisition landscape in the Middle East.
In July 2017, Amazon finalized the acquisition of Souq, a 12-year-old e-commerce company based in Dubai, UAE, for a significant sum of $580 million.
Two years later, in March 2019, Uber inked a deal to acquire Careem, a Dubai-based ride-hailing giant, for a staggering $3.1 billion. This transaction not only showcased the dynamism of the regional tech ecosystem but also marked Careem as the first unicorn startup in the Middle East.
Tamara, a leading Saudi fintech firm in the region, has recently secured $250 million in debt financing from a diverse array of sources, including Goldman Sachs and Shorooq Partners.
In essence, the MENA region's tech evolution is underpinned by a thriving community of tech enthusiasts and entrepreneurs, paving the way for disruptive developments Internet usage and advancement.
From Internet to AI Governance: Lessons to be Learned
Technology advancement often outpaces the evolution of governance and policy development processes. In the case of the Internet, the UN responded to the emerging Internet applications by adopting a global governance approach through the establishment of the Internet Governance Forum (IGF), an outcome of the World Summit on the Information Society (WSIS) and its two phases, which were held in 2003 (Geneva) and 2005 (Tunis) respectively. The Internet Governance Forum (IGF) stands as a pivotal multistakeholder platform designed to foster dialogue and address public policy issues concerning the Internet. While the IGF has made commendable strides in tackling certain Internet policy challenges since its inception in 2006, issues remain in the MENA region, particularly related to Internet openness, digital rights, and multilingualism.
For Sep 2024, the UN has announced the formation of a High-Level Advisory Body on Artificial Intelligence. The UN stated that the newly formed advisory body will serve as a globally coordinated group—which includes in its membership representation from Egypt, Saudi Arabia and UAE—to harness AI for humanity, while addressing its risks and uncertainties.
This is undoubtedly a “nice-to-have” global initiative that could advise upon the future formation of an “AI Governance Forum.” However, regional and national initiatives should also be pursued and developed to help secure an inclusive AI innovation adoption model, embraced by policymakers, technology experts, and startups on equal footing. For example, in April 2019, the UAE launched the ”National Artificial Intelligence Strategy 2031” and made it an integral part of the national business development agenda.
The Strategy includes eight strategic objectives aimed at employing AI in vital areas, such as education, government services, and community wellbeing. The objectives include: Reaffirming the UAE’s position as a global hub for AI, increasing the competitive edge of the AI sector in the UAE, establishing an incubator for AI innovations, employing AI in the field of customer services to improve the quality of life, attracting and training talents for jobs of the future, securing leading research capabilities, providing data-driven infrastructure to support AI experiments, and optimizing AI governance and regulations.
In summary, the rapid and unpredictable evolution of AI underscores the urgent need for a united policy, business, and technology effort to ensure its positive impact on humanity. The issue of AI governance will become particularly significant as major traditional Internet players gain leadership roles in the MENA marketplace and solidify their regional AI positions. Finally, the pivotal role of data and its classification will remain the cornerstone for any successful AI innovative adoption model—both in the MENA region and across the globe.
