UAE AI Investment Surges 105% as Execution and Data Gaps Limit Enterprise Maturity
UAE organisations are significantly increasing their investment in artificial intelligence, but gaps in execution, data readiness and governance are limiting their ability to turn that spending into enterprise-wide transformation, according to new findings from ServiceNow’s Enterprise AI Maturity Index 2026.
The UAE-specific findings show that AI spending among UAE organisations has increased 105% year on year, while the country’s overall AI maturity score rose 13 points to 48 out of 100.
The research also found that organisations expect AI to account for almost one-fifth of total IT budgets by 2027, indicating that investment is likely to continue rising even as businesses work through the operational challenges of scaling AI.
Agentic AI adoption remains cautious
Despite the rapid growth of interest in agentic AI, most UAE organisations remain at an early stage of autonomous deployment.
More than half, or 57%, have implemented agentic AI, but only 7% have used it to build autonomous workflows. For most organisations, AI continues to augment existing employee activities rather than fundamentally change how business processes operate.
“The UAE remains one of the world’s most ambitious AI markets. The government’s long-term strategy and regulatory leadership have given organisations a genuine head start,” said Saif Mashat, VP – Middle East & Africa at ServiceNow. “While UAE organisations have built the financial and strategic commitment to AI, the ones pulling ahead are moving from AI pilots to AI orchestration, connecting legacy systems, data, governance, and AI agents in one control tower. That’s where enterprise-wide execution begins.”
Legacy systems and fragmented data remain barriers
The report identifies legacy technology as one of the key constraints on enterprise AI adoption. Only 14% of UAE organisations have replaced legacy systems with integrated platforms, leaving many businesses deploying AI across fragmented applications and disconnected workflows.
Data readiness presents another significant challenge. 77% of UAE executives cite inadequate data accuracy, access and management as a major barrier to AI adoption.
These gaps could become increasingly important as organisations move towards more autonomous AI systems, which require access to reliable data and connected workflows to operate effectively.
Governance lags behind AI deployment
ServiceNow’s research also highlights a gap in AI governance. Only 16% of UAE organisations have implemented AI testing, auditing and risk-management processes, potentially limiting their ability to scale AI while maintaining trust and controlling operational risks.
Globally, the research indicates that organisations with higher AI maturity are more likely to combine a shared AI strategy with modernised data infrastructure, autonomous workflows, continuous workforce upskilling and stronger AI governance.
These organisations achieve an average AI return on investment of 160%, projected to rise to 194% within two years. They are also reported to be 5.6 times more productive, 2.7 times more successful at scaling AI and 2.6 times more effective at managing risk.
“The organisations pulling ahead are no longer distinguished by how much they spend on AI, but by how effectively they operationalise it. This requires moving from point solutions to unified, orchestrated platforms,” said Mashat. “Strong governance, connected data and orchestrated workflows are what translate investment into business outcomes. Together, these give organisations the confidence to scale AI, manage risk and generate measurable returns. The UAE government has already created many of the conditions for AI leadership. The challenge for enterprises now is to bring that same discipline and consistency into their own organisations.”
The Enterprise AI Maturity Index 2026 was conducted by ThoughtLab on behalf of ServiceNow, surveying 4,500 executives and 2,000 employees across 19 countries and 12 industries. The research assessed AI maturity across seven areas, including leadership and strategy, management and culture, data modernisation, AI governance, value generation, talent and skills, and AI-enabled workflows. The UAE findings are based on responses from 100 executives.
