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UAE minister vows ‘responsible’ AI rollout

The world’s first minister for artificial intelligence says the United Arab Emirates isn't only looking for economic benefits as it seeks to become a leading nation in the sector.

The UAE’s minister of state for AI, Omar bin Sultan al-Olama, said “quality of life” considerations were key, and also stressed the importance of a “responsible” rollout — with impacts potentially reverberating for decades.

“We are looking at AI as a tool,” he told AFP in an interview in Dubai. “It’s a tool that we need to use to unleash the quality of life aspect.”

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The UAE also calls AI “machine intelligence,” defining it as a branch of technology enabling systems to “think, learn, and make decisions like humans,” which can support everything from virology to transport.

“Yes, economic gain is something that every country wants, and we want it too,” Olama added. “But… we want to ensure the development and deployment and the use of AI is responsible.”

Olama was just 27 when he was handed the cabinet-level position in 2017, tasked with launching the oil-rich Arab nation’s strategy in a field which touches everything from speech and facial recognition to commerce and autonomous cars.

His appointment came a year after the UAE also named ministers for happiness, hoping to create a “happier society,” and tolerance, mainly aimed at promoting coexistence in the Gulf country where foreigners make up the majority of the population.

The UAE's stated goal is to become one of the leading AI nations by 2031, creating new economic and business opportunities and generating up to 335 billion dirhams ($91 billion) in extra growth.

According to consultancy firm PwC Middle East, nearly 14 percent ($96 billion) of the UAE’s gross domestic product will come from AI by 2030.

“The UAE was the only country that appointed someone to actually oversee this mandate seriously,” Olama said.

Driverless taxis

The wealthy Gulf country has invested heavily in technology over the past decade as it diversifies its economy and reduces its reliance on oil.

Its bets include driverless cars, with autonomous taxis already tested on the streets of the capital Abu Dhabi, while Dubai, another of the country's seven emirates, aims to have a quarter of its transport driverless by 2030.

Abu Dhabi’s Mohamed bin Zayed University of Artificial Intelligence, touted as the world's first graduate-level AI university, opened to students last year, and the country has launched a number of start-up hubs and training schemes.

However, the UAE has also drawn concern over its high levels of surveillance, and in 2019 it denied reports that a popular mobile app was being used for government spying.

Olama said a big part of his job was instilling public confidence and avoiding costly errors when AI systems are put in place.

The dangers of AI include inadvertently introducing bias against certain groups of people, which could prove damaging in areas such as public services.

“It entails that there’s no controversy around the deployment,” Olama said of his role. “It entails that we focus on deploying it today, but in a way that makes sure it does not impact future generations negatively.”

‘Element of fear’

An important step in the project, he said, was to properly explain AI to senior officials, to “demystify” the technology and reduce the “element of fear.”

“If you’re dealing with something you don’t understand, you will have an aspect or element of fear associated with it, it’s human nature,” he said.

“One program… is focused on training senior government officials on understanding what AI is, understanding the ethical dilemma, understanding what good and bad deployments are, how do you remove bias.”

“Today, these people are our AI army. They are the people that are deploying AI across government, and really have a very strong foundation that they can build on.”

The UAE also has ambitions of becoming a major player in other areas of science and technology, sending its first astronaut into space in 2019 and launching a probe in 2020 that went into Mars' orbit the following year.

This month, the country announced a digital economy strategy — including a council headed by Olama — hoping the sector will contribute 20 percent of GDP within 10 years.

“I don’t think in the next quarter-of-a-century there’s going to be an economy in the world that is not dependent for the majority of its economic activity on the digital realm, and AI is a big component of that,” said Olama.

“I also think we have not seen the true impact of AI on the economy.”

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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