Page 69 - SAMENA Trends - Jan-Mar 2024

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Saudi Arabia Plans US$40 Billion Push into Artificial Intelligence, NYT Reports

Saudi government plans to create a fund associated with artificial intelligence, U.S., citing its energy resources and
of about $40 billion to invest in artificial including chip makers and large-scale funding capacity. Al-Rumayyan had said
intelligence, the New York Times reported, data centers, the report added. PIF and the kingdom had the "political will" to make
citing three people briefed on the plans. Andreessen Horowitz did not immediately artificial intelligence projects happen and
Representatives of Saudi Arabia's Public respond to requests for comment from ample funds it could deploy to nurture the
Investment Fund (PIF) have discussed Reuters. Last month, PIF's Al-Rumayyan technology's development.
a potential partnership with U.S. venture pitched the kingdom as a prospective hub
capital firm Andreessen Horowitz and for artificial intelligence activity outside
other financiers in recent weeks, the
newspaper reported. Andreessen Horowitz
and PIF governor Yasir Al-Rumayyan have
discussed the possibility of the U.S. firm
setting up an office in Riyadh, according to
the report. PIF officials also discussed what
role Andreessen Horowitz could play and
how such a fund would work, the newspaper
said, adding the plans could still change.
Other venture capitalists may participate in
kingdom's artificial intelligence fund, which
is expected to commence in the second
half of 2024, the newspaper said. Saudi
representatives have indicated to potential
partners that the country is interested
in supporting a variety of tech start-ups

ICT Spend in Middle East, Türkiye and Africa to Top US$238 billion

ICT spending in the Middle East, Türkiye, Vice President and Regional Managing AI-related offerings continue to align
and Africa (META) will top $238 billion Director Jyoti Lalchandani explaining with the evolving business goals of their
this year, up 4.5% over 2023. And with that the AI investment priorities of end- customers." IDC President Crawford Del
the region's digital economy increasingly user organizations will likely evolve over Prete heralded GenAI's emergence as a
taking shape, digital transformation the coming years as they move beyond golden era of innovation that will reshape
spending will reach $59 billion in 2024 their initial focus on reducing costs. IT landscapes and customer engagement,
and accelerate at a five-year CAGR of 15% Across the META region, there is a clear predicting that global annual spending on
to $88 billion in 2027. This is according appetite for AI in general and generative GenAI will surpass $150 billion by 2027.
to the predictions by International Data AI (GenAI) in particular, with spending Thomas Meyer, IDC's group vice president
Corporation (IDC) as more than 400 senior on AI forecast to reach $6.9 billion by for the EMEA region stressed that tech
executives from the region's leading 2027," said Lalchandani. "However, many vendors need to develop responsible AI
technology vendors, telcos, and IT service organizations are already questioning strategies that support their customers
providers gathered in Dubai for the 2024 whether they are over-pivoting on cost in unlocking funding for investments,
edition of IDC Directions Middle East, reduction and not focusing enough on how ensuring ROI, and delivering significant
Türkiye, and Africa, which addressed the AI can help them to grow their revenues. business outcomes for prioritized use
theme "Preparing Your Customers for an We expect revenue growth outcomes to cases. IDC Directions Middle East, Türkiye,
AI Everywhere Future." IDC expects AI take center stage in the next 3–5 years and and Africa takes place annually and is a
spending in the region to top $3.0 billion providers must track this shift carefully firm fixture on the ICT industry calendar.
in 2024, up 32% over 2023, with Group with their core buyers to ensure that their

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