Market Trends of Saudi Arabia Big Data And Artificial Intelligence Industry
Hardware Sector is Likely to Witness a Major Growth
• Saudi Arabia's government investment fund regularly contributes to the growth of artificial intelligence in the country. For instance, in March 2024, the government of Saudi Arabia created a USD 40 billion fund to invest in artificial intelligence. The government is envisaged to develop several tech startups deploying AI for chip production and building large-scale data centers to make next-generation computing available. The fund is planned with US venture capital firm Andreessen Horowitz to revolutionize the digital landscape in the country by leveraging artificial intelligence. Moreover, as per data by the Saudi Data & AI Authority, the contribution to artificial intelligence revenue will reach USD 135.2 billion by 2030.
• The demand for AI technologies will grow due to KSA's new vision for 2030 and its policy to strategically position countries in the coming years, i.e., by investing in Artificial Intelligence Technology while developing other sectors such as non-Oily industries that require suitable artificial intelligence hardware. Moreover, the Smart Data & AI Summit in May 2024 will attract more than 300 Big Data Analytics & AI professionals, contributing to future artificial intelligence growth.
• The AI Hardware sector includes companies like Amazon, Apple, Baidu, and Google that spend billions of dollars to develop Artificial Intelligence technologies. The inputs required for AI to live up to expectations, such as powerful computer hardware, increasingly advanced algorithmic models, and a vast and rapidly growing database, are considered present.
• In February 2023, Oracle announced the opening of a third public cloud region to invest USD 1.5 Billion to Meet Cloud Computing Demand in Saudi Arabia, where Oracle Cloud delivers pioneering innovation in technologies like AI, Machine Learning, and IoT, and it will help fuel the economic growth and digital transformation that is an integral part of the Saudi Vision 2030.
• In Riyadh, there are offices of global companies that supply software and hardware solutions to various businesses and government projects in Saudi Arabia, such as SAP, Microsoft, Cisco Systems, Tata Consultancy Service, Honeywell, SBM, Salesforce-Apple, HP, Intel, etc.
Retail Sector to Witness Significant Growth
• Due to the high adoption of AI technologies in this forecast period, shopping malls are expected to increase. The rise of cloud-based platforms and other AI technologies enables customers to expect a more effortless shopping experience. In particular, this is causing a surge in demand for big data and Artificial Intelligence in the Middle East Retail Market.
• To meet a growing number of young and tech-savvy customers, retailers are turning to innovative ways where the technology can be used. In addition, retailers will benefit from the analysis of artificial intelligence and big data to more effectively meet customers' needs because of the demand for improved user experience. Implementing artificial intelligence will allow organizations to better understand their client's needs and create an enhanced customer experience by offering insights into customers' likes and dislikes and recommending products they're willing to buy.
• AI can effectively analyze vast data, predict customer behavior, and enhance the e-commerce site's core operation for recommendations with algorithms, product search ranking, merchandising placements, and much more.
• For instance, in March 2023, AWS and NVIDIA announced The multipart collaboration, which aims to develop the world's most scalable, on-demand Artificial Intelligence infrastructures optimized for training increasingly complex large language models and innovative AI applications. The collaboration focuses on features of next-generation (Amazon EC2) P5 instances by NVIDIA H100 Tensor Core GPUs and on AWS's state-of-the-art networking and scalability, which the compute performance of deep learning models shall be provided with up to 20 exaFLOPS.
• As one of the most accessible AI use cases for e-commerce companies, retailers in Saudi Arabia can let customers access their digital store at any hour of the day. This technology will allow you to interact with a customer whenever needed, learn their details, and give them the best possible response to create an even more personalized experience. As per data from the Kingdom's Central Bank, the total value of e-commerce sales using Mada cards and point-of-sale transactions was USD 205.5 billion in 2023.
