Dell Research: 92% of UAE Firms Prioritise AI, But 100% Face a Skills Gap

New research from Dell Technologies reveals a clear paradox in UAE AI adoption. While 92% of businesses now view artificial intelligence as a core part of their strategy, a staggering 100% report their teams lack the necessary skills to use it effectively. According to Dell's 'State of Innovation and AI Survey', this execution gap, combined with rising security fears, is the primary challenge preventing companies from moving beyond pilot projects to full-scale implementation. This highlights the urgency in addressing the skills gap at a national level.

The state of UAE AI adoption

There is a straightforward way to understand the current market: ambition is high, and early results are positive. The Dell survey, which included 50 UAE business and IT leaders, found that 88% of organisations are already seeing substantial return on investment or productivity gains from AI. This has solidified its place as a strategic priority.

This momentum is driving investment in foundational elements. The research shows 64% of UAE organisations are prioritising 'data readiness for AI' as a top IT initiative. This signals a shift from experimentation to building the robust data pipelines needed for enterprise-grade AI. The positive sentiment confirms that for many, the proof-of-concept phase is over.

Why it matters: The execution gap

What matters is not the ambition, but the ability to execute. The survey exposes a major disconnect between strategic goals and operational reality. Previously, AI was a sandbox project for innovation teams. Now, it is a core business function, but the organisation's skills, security posture, and infrastructure have not caught up. This is a classic pattern where AI adoption accelerates, but execution lags.

This execution gap is the central challenge. Walid Yehia, Managing Director for the South Gulf at Dell Technologies, noted the shift. "Organizations are moving beyond piloting AI and are instead beginning to embed it at the core of their strategies," he said. "This transition underscores the transformative potential of AI, but achieving its full impact will require addressing critical challenges."

The three barriers holding back scale

The research identifies three persistent challenges that prevent businesses from scaling their AI initiatives from small projects to company-wide transformation.

The skills gap

The most alarming statistic is that 100% of UAE respondents believe their teams lack the required AI skills. This isn't just a minor issue; it's a universal roadblock. The concern is particularly acute for generative AI, where 66% report insufficient knowledge to implement safely. While UAE job seekers are confident in their AI skills, a deep technical and strategic skills shortage persists at the enterprise level.

Rising security concerns

Innovation is being held back by legitimate security concerns. The survey found 72% of companies worry about exposing sensitive data to third-party AI tools, a notable increase from 64% last year. This concern directly influences strategy, with 74% of businesses planning to run AI on-premises. This is a defensive move to maintain control over data, sovereignty, and intellectual property, even if it means higher upfront costs.

Infrastructure readiness

Many companies find that their existing IT environments are not built for the demands of AI. The processing power, specialised hardware such as GPUs, and data storage required for AI workloads differ from traditional IT. Without upgrading this core infrastructure, integrating AI will remain slow and inefficient. Other companies are trying to solve this by bringing dedicated AI platforms to the UAE.

The link between AI and sustainability

One of the most positive trends is the strong connection businesses are making between AI and sustainability. A remarkable 92% of UAE firms see AI as a crucial tool for optimising resource use. This goes beyond corporate responsibility; it's about operational efficiency.

Companies are using AI to manage data centres more effectively, reduce energy consumption from idle workloads, and improve overall efficiency. The report also notes that 82% of organisations are collaborating with third parties to achieve circular IT solutions, creating an ecosystem focused on sustainable technology practices.

Looking forward: From ambition to reality

The implication for UAE businesses is clear. The next phase of competition will not be about who has an AI strategy, but who can solve the execution gap first. Success depends on building robust talent pipelines, creating secure infrastructure, and developing clear governance for AI use. Companies that master these operational challenges will be the ones to realise the full financial and productivity gains AI promises.

As businesses navigate this complex landscape, it is important to remember that human intelligence remains the driving force. Technology is a tool, but strategy, ethics, and skills development will determine the winners and losers in the AI era.

Key research findings

• Strategic Priority: 92% of UAE firms view AI/GenAI as a key part of their business strategy.
• Return on Investment: 88% are seeing substantial ROI and/or productivity gains from AI.
• Skills Gap: 100% of respondents believe their teams lack the necessary skills for AI.
• Security Concerns: 72% fear exposing sensitive data, up from 64% in the previous year.
• Deployment Model: 74% plan to run AI on-premises via AI PCs and local software.
• Sustainability Link: 92% recognise AI as a crucial tool for optimising resource use.

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