Saudi Arabia’s AI-Driven Future: HUMAIN and the Path to Global AI Leadership

By Tareq Alangari, Chief Executive Officer, e& enterprise KSA

On May 13, 2025, His Royal Highness Crown Prince Mohammed bin Salman launched HUMAIN, a national AI champion backed by the Public Investment Fund (PIF). Headquartered in Riyadh, HUMAIN aims to be one of the world’s top AI companies by 2030. With over USD 100 billion in planned investments, HUMAIN will develop foundational models, sovereign AI infrastructure, and nurture global partnerships, positioning the Kingdom as a leading force in ethical and impactful AI innovation.

Unlike traditional AI firms, HUMAIN is designed as a collaborative platform—building Arabic large language models (LLMs), driving digital sovereignty, and contributing to the global AI ecosystem. Its launch marks a transformative milestone for Saudi Arabia’s AI journey, reflecting the Crown Prince’s vision to elevate the Kingdom from an adopter to a global leader and creator in the field.

In the global race to harness artificial intelligence (AI), all eyes often turn to the usual suspects—mature markets like the United States, which continue to dominate the AI frontier. Yet, over the past two years, Saudi Arabia has emerged as a standout story. Amid a sweeping social, cultural, and economic transformation, the Kingdom has rapidly positioned itself as a bold contender in AI adoption, attracting attention for the right reasons and challenging global perceptions of innovation in the Middle East.

The Kingdom isn’t just experimenting with AI—it is embedding it at the core of its transformation strategy. The Public Investment Fund (PIF) has earmarked USD 40 billion to drive innovation, develop robust data infrastructure, and nurture startups. These investments reflect Saudi Arabia’s ambition to establish world-class AI capabilities and solidify its position as a global leader in technology-driven development.

Rooted in the ambitious Vision 2030, the Kingdom is dedicated to building a future that intertwines innovation, ambition, and purpose, through the diversification of its economy beyond oil. What makes this transformation unique is the scale and intent behind it. The NEOM project, a futuristic smart city that integrates AI, robotics and advanced data analytics to redefine urban living while prioritising sustainability and innovation, is a symbolic example of this intent. Moreover, the introduction of “ALLaM,” an Arabic Large Language Model developed by the Saudi Data and Artificial Intelligence Authority (SDAIA), enhances Arabic-language AI services and drives innovation across various sectors, including education and healthcare.

A multifaceted revolution

In Saudi Arabia, the integration of AI into public services and industries is not just about meeting the Kingdom’s ambitions—it’s about making a real difference in people’s lives. With 39 per cent of government entities already using or experimenting with AI, and 81 per cent of those reporting significant enhancements in service delivery, the transformative potential of AI is clear. From workforce management to urban planning, education, and traffic systems, AI is reshaping daily life and governance by streamlining key functions and delivering tangible benefits to citizens.

During the pandemic, the Saudi Ministry of Education introduced an AI-powered tool, to enhance learning outcomes. It continues to improve outcomes through personalised experiences and insights for students and teachers, serving as a foundation to prepare the next generation for an AI-driven economy.

AI is transforming urban development in Saudi Arabia. The Ministry of Municipal and Rural Affairs and Housing (MOMRAH) uses AI to predict housing demand, monitor urban growth, and optimise resources. By analysing population data and migration trends, the Ministry ensures timely, well-planned developments supported by essential infrastructure like schools, hospitals, and transport networks.

Traffic management is another area where AI has made a significant impact. Advanced tools like drones for road inspections, thermal scanning for road conditions, real-time traffic monitoring, and adaptive signal control systems help optimise traffic flow, reduce congestion, and enhance road safety, particularly during busy events like Hajj. These technologies have already reduced rush-hour delays in major cities.

In labour markets, platforms like Musaned—a Ministry of Labour-supported app for recruitment visa applications and tracking—ensure compliance with labour regulations. The Ministry of Human Resources also uses AI to address challenges such as unemployment and skill mismatches by analysing employment trends and workforce participation, creating a dynamic and responsive labour market. Similarly, the Saudi Ministry of Justice uses AI to automate legal processes, reducing administrative burdens and improving accessibility for citizens.

What makes Saudi Arabia’s approach to AI adoption stand out is its holistic integration across all government entities. These use cases stem from the nation’s commitment to achieving two key goals under Vision 2030: building a vibrant society by continuously enhancing social infrastructure and simplifying access to essential services while creating a thriving economy by laying the foundation for economic diversification. For Saudi Arabia, this journey is as much about transforming systems as it is about improving lives—one innovation at a time.

Private sector must follow suit

While Saudi Arabia’s public sector has laid the foundation for AI adoption, the private sector holds the key to unlocking its full potential. With AI expected to contribute significantly to GDP, driven by a 29 per cent compound annual growth rate (CAGR) in the AI market, the private sector’s role in advancing this growth is undeniable. Yet, current readiness levels suggest there’s a gap between ambition and execution. A new study of MENA region CEOs by IBM found that 65 per cent are accelerating AI adoption at a pace that may be uncomfortable for some in their organisation. In Saudi Arabia, the figure climbs to 76 per cent.

Entities like the Saudi Data & AI Authority (SDAIA) and King Abdullah University of Science and Technology (KAUST) have pioneered AI-driven infrastructure in the public domain. Private giants such as Saudi Telecom Company (STC) and Saudi Aramco are beginning to mirror these efforts through investments in AI infrastructure. However, according to Cisco’s AI Readiness Index 2024, only 36 per cent of organisations in Saudi Arabia have prioritised AI in budget allocations, and just 42 per cent believe their organisations demonstrate a strong understanding of global data privacy standards. These figures highlight the need for the private sector to step up and close this readiness gap.

The risks of inaction are significant. Businesses that delay adopting AI risk inefficiencies, reduced market share, and an inability to meet the expectations of increasingly tech-savvy consumers. As the global economy becomes more AI-driven, companies failing to adapt will struggle to remain competitive.

What’s at stake goes beyond market leadership; it’s about driving innovation that impacts both businesses and society. The private sector has the unique ability to amplify AI’s impact by fostering startup ecosystems, accelerating product development, and integrating AI solutions into their operations. Through strategic collaborations with the public sector, businesses can contribute to building a cohesive AI-driven economy that delivers long-term value.

AI applications can transform industries by hyper-personalising customer experiences, optimising supply chains, and driving efficiency. These advancements not only boost profitability but also align with broader goals like job creation and sustainability.

The challenge now lies in shifting perceptions within the private sector. AI must be viewed as a strategic imperative, not a secondary investment. Companies that prioritise AI adoption will thrive in the short term and solidify their roles as key players in Saudi Arabia’s Vision 2030—a vision centred on innovation and economic diversification.

The public sector has demonstrated how AI can create tangible benefits. The force is now in the hands of the private sector, which needs to rise to the challenge, follow suit, and ensure AI becomes central to Saudi Arabia’s transformation story.

Shaping the next frontier of AI transformation

As Saudi Arabia accelerates its AI transformation, the private sector stands at a crossroads of opportunity and responsibility. For enterprises, the path forward is clear: align with national initiatives, embrace innovation, and actively contribute to the Kingdom’s evolving AI ecosystem.

The journey to embedding AI effectively isn’t just about ambition—it’s about taking deliberate steps that yield measurable impact. Collaboration with the government is an essential starting point. Initiatives like HUMAIN allow businesses to join forces on AI-driven innovations. Aligning these strategies not only strengthens competitiveness but also positions companies as contributors to Vision 2030’s broader goals of economic diversification and sustainability.

Enterprises must also take full advantage of government-backed tools, AI infrastructure, and data-sharing initiatives. Participating in upskilling programmes is equally important to bridge gaps in areas such as global data privacy standards, ensuring compliance and maintaining an edge in a rapidly evolving market. Beyond collaboration and education, businesses must embed AI into their operations strategically—not just to follow trends but to deliver measurable outcomes. For example, predictive maintenance in energy minimises downtime, AI-driven fraud detection strengthens finance, and route optimisation in logistics reduces costs and improves timelines. Viewing AI as a long-term enabler of efficiency and innovation will set businesses apart from those treating it as a mere checkbox.

Responsible AI adoption also requires balancing innovation with accountability. Adhering to the Saudi Personal Data Protection Law (PDPL) and the AI Adoption Framework enables businesses to mitigate risks such as data misuse and algorithmic bias. The PDPL enforces robust data governance and privacy measures to build trust, while the AI Adoption Framework promotes fairness, transparency, and ethics in AI deployment. Aligning with these regulations empowers businesses to foster trust and drive innovation responsibly, contributing to Vision 2030’s goals of sustainable and inclusive growth.

This dual approach—innovation with accountability—will be critical in ensuring that businesses thrive while aligning with the Kingdom’s vision for a tech-driven future.

‏@3ngri