RIYADH, SAUDI ARABIA - Saudi Arabia has emerged as a global leader in artificial intelligence (AI), propelled by significant investments in technology development and its integration into government systems. The Kingdom's proactive approach has earned it the top spot in the "AI Government Strategy" category of the 2024 Global AI Index, published by the UK-based Tortoise Media. This achievement underscores Saudi Arabia's ambition to become a key player in the future technology landscape, moving beyond its traditional role as an energy powerhouse.
Tortoise Media has been annually evaluating the AI capabilities of nations since 2019, with the 2024 index analyzing a total of 83 countries. The report highlights Saudi Arabia's ambitious government strategy, including plans for substantial AI investments over the next decade, which positioned it ahead of the United States (2nd), and South Korea and China (joint 3rd) in the "AI Government Strategy" ranking. Notably, the report points out a recent slowdown in global private AI investment, contrasting with an increase in government-led public funding, suggesting that Saudi Arabia's early and significant investments are proving highly effective.
The Saudi government's AI development strategy is characterized by its bold financial commitments. Following a national investment of $27 billion in the Information and Communication Technology (ICT) sector in 2023, the Kingdom announced the establishment of a massive $40 billion (approximately 57 trillion KRW) AI fund in April of last year. This fund aims to accelerate the development of the AI ecosystem by supporting the construction of large-scale data centers and fostering the AI semiconductor manufacturing industry, among other critical infrastructure and technology developments.
Fueled by this robust government support, Saudi Arabia's AI capabilities are rapidly advancing. A report by the Saudi Data and Artificial Intelligence Authority (SDAIA), established in 2019, projects that AI will contribute 12% to the Kingdom's Gross Domestic Product (GDP) by 2030, becoming a central driver of economic growth and structural change.
A key aspect of Saudi Arabia's strategy is the proactive adoption of AI within government institutions, which is significantly driving the growth of the AI industry. According to Tortoise Media's report, 39% of Saudi government entities were already using AI technology in their operations or were in the experimental phase of adoption last year. Furthermore, 43% of government agencies allocated budgets for AI-related projects in 2023 or 2024. This indicates that the Saudi government views AI not merely as a technological trend but as a crucial tool for enhancing operational efficiency and delivering improved public services to its citizens.
Moreover, the Saudi government is strongly committed to investing in companies with AI-based technologies. Saudi venture capital firms are actively funding AI startups, encouraging the development of innovative technologies. In 2023, Saudi Arabia's investment in the AI sector reached $1.7 billion, a 14% increase from the previous year. The government has set an ambitious target of attracting $20 billion in AI investments by 2030, demonstrating its full commitment to securing future growth engines.
Commenting on Saudi Arabia's proactive AI development policies, Professor Kim Sun-joo of Yonsei University's Computer Science Department emphasized, "The goal of government public investment in the AI sector should ultimately be to foster the industry. When companies grow, job creation and ecosystem development naturally follow." He added, "The South Korean government also needs to make bold investments in the AI sector, nurture startups, and actively establish policies to revitalize a healthy ecosystem."
Saudi Arabia's top ranking in the "AI Government Strategy" category holds significant implications for the digital transformation race among Middle Eastern nations. The aggressive investments by oil-rich Middle Eastern countries in AI and other advanced technologies are emerging as a new variable in the global technology competition. In particular, Saudi Arabia's success story is expected to strongly motivate other Middle Eastern nations to formulate AI-centric national innovation strategies.
In conclusion, Saudi Arabia has positioned itself as a global leader in "AI Government Strategy" through its bold and systematic government-led AI development initiatives. Large-scale investments, the proactive adoption of AI within government agencies, and comprehensive efforts to foster the business ecosystem are key drivers propelling Saudi Arabia's transformation into a future technology powerhouse. South Korea, among other nations, may need to consider Saudi Arabia's example to further strengthen its own AI competitiveness through national-level strategies and increased investment.
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