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As global revenues from artificial intelligence (AI) are projected to soar to $90 billion by 2025, growing annually by 45%, the technology’s impact on global GDP is anticipated to reach a staggering 14% by 2030, equating to an additional $15.7 trillion. Against this backdrop, Saudi Arabia’s Vision 2030 seeks to leverage AI to diversify its economy, moving away from traditional oil and gas revenues to new method for Saudi Arabian Economy.
AI Initiatives in Saudi Arabia
Signaling its commitment to AI, Saudi Arabia made headlines as the first country to grant citizenship to an AI-driven humanoid robot, Sophia. More substantially, the Kingdom is developing Neom, a futuristic megacity located in the north-western Tabuk province. Spanning approximately 26,500 km², Neom will be an “independent international zone” integrating parts of Saudi Arabia, Egypt, and Jordan. With a $500 billion investment from the Public Investment Fund (PIF), Neom aims to contribute $100 billion annually to Saudi Arabia’s GDP by 2030.
Neom: A Hub of AI-Driven Innovation
Neom’s development focuses on 16 key economic sectors: energy, water, mobility, biotech, food, manufacturing, media, entertainment, culture, fashion, technology, tourism, sports, design, construction, services, health, education, and livability. AI and robotics will be central to innovations in each of these areas, as highlighted by Crown Prince Mohammed bin Salman. The integration of AI will be ubiquitous, making Neom a living laboratory for AI applications.
Institutional Reforms for AI Governance
To support this AI-driven transition, Saudi Arabia has established the Saudi Data and Artificial Intelligence Authority (SDAIA) and the National Center for Artificial Intelligence. These institutions will coordinate with the National Data Management Office to underpin the governance structures necessary for digitization and AI integration. Additionally, educational reforms are being introduced to equip the younger generation with digital skills, ensuring a future-ready workforce.
AI in Municipal Services
Beyond Neom, AI is set to transform municipal services across Saudi Arabia. AI technologies can optimize infrastructure management, waste management, urban planning, and traffic management. For instance, AI-powered systems can analyze real-time traffic data to enhance traffic flow and reduce congestion. In waste management, AI can optimize collection routes and improve recycling rates by analyzing waste generation patterns.
Economic Diversification Through AI
AI can also identify investment opportunities, aiding municipalities in generating revenue through smart urban planning and development projects. By analyzing demographic data, economic trends, and environmental factors, AI can help municipalities plan for sustainable growth and development, ensuring long-term economic stability.
Public Engagement and AI
AI can further enhance public engagement through sentiment analysis of social media and community feedback. This data can provide insights into public sentiment, concerns, and priorities, aiding in the development of citizen-centric strategic plans. Municipalities can use AI to improve communication with citizens, streamline services, and enhance overall efficiency.
AI in Saudi Arabian Economy: Conclusion
AI’s potential to transform economies is profound. As Google CEO Sundar Pichai stated, “AI is one of the most important things humanity is working on, more profound than electricity or fire.” For Saudi Arabia, AI represents not just an economic opportunity but a pathway to a sustainable and diversified future. As Neom and other AI-driven projects unfold, they will offer a glimpse into the future of AI integration, impacting not only Saudi Arabia but potentially setting a precedent for global technological advancements.
Recommendations
Policymakers, urban planners, and municipal administrators should embrace AI technologies to create smarter, more sustainable, and resilient cities. Addressing challenges related to data privacy, regulatory constraints, and workforce readiness will be crucial in harnessing AI’s transformative potential.
Source: Driving efficiency: The role of Artificial Intelligence (AI) in enhancing municipal , Artificial Intelligence, Neom and Saudi Arabia’sEconomic Diversification from Oil and Gas
