SDAIA: Generative AI spending to hit $202 billion by 2028
Saudi Gazette reportRIYADH —
The Saudi Data and Artificial Intelligence Authority (SDAIA) has released a new report titled "Generative Artificial Intelligence: Promising Prospects for a Better Future," shedding light on the transformative impact of generative AI technologies and the substantial economic opportunities they present.The report emphasizes the acceleration of global investment and adoption of generative AI, a technology that enables machines to create content such as text, images, code, and simulations by learning patterns from vast datasets.
Unlike traditional AI — which is generally limited to classification, prediction, and recommendations — generative AI is capable of complex and creative output across industries.
Citing research from Deloitte, SDAIA notes that generative AI can reduce operational costs by 30% or more through task automation and productivity enhancement.
A McKinsey survey of over 1,300 companies showed that human resources departments saw cost reductions between 10% and 37%, while supply chain functions recorded profit increases of over 6% in some cases.
The report also references 2024 projections from IDC, which forecast that global spending on generative AI will surge to $202 billion (SR758.7 billion) by 2028. That figure is expected to represent 32% of total global AI spending, which is projected to reach $632 billion (SR2.4 trillion).
In the Gulf region, SDAIA highlights the findings of a 2024 McKinsey study that surveyed 140 public and private sector organizations.
The study found that 75% of participants were using generative AI in at least one area — notably sales, marketing, and software engineering — reflecting the high value generated in these sectors.
Moreover, 57% of respondents allocate 5% of their digital budgets to generative AI, and half have developed implementation roadmaps for key use cases.
The report also points to the rapid pace of global adoption, with 80% of organizations expected to implement generative AI solutions by 2026.
By 2027, 50% are projected to use specialized models, and more than 100 million people globally are expected to rely on robots as digital assistants.
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