According to a new study by Cooper Fitch, concerns about mass job cuts due to artificial intelligence (AI) in the United Arab Emirates (UAE) and Gulf Cooperation Council (GCC) countries have significantly decreased over the past year. Nevertheless, AI continues to change the structure of positions.
The report 'AI and the Future of Talent 2027' showed that only 14 percent of respondents expect AI-related roles to be reduced within the next 12–24 months, compared to 31 percent in last year's survey. Instead of completely eliminating positions, organizations are consolidating tasks and responsibilities; 22 percent reported starting such consolidation, and another 41 percent are considering this possibility.
Nearly two-thirds of respondents stated that AI implementation is at a functional or advanced stage, which is higher than the approximately 19 percent of functional implementation last year. In the UAE and GCC, 44 percent of organizations now use AI for specific tasks, while only 8 percent have fully integrated AI into all operational processes.
However, the pace of adoption is not accompanied by adequate governance. The study found that 57 percent of organizations lack a formal AI governance structure or only possess an informal, developing system. Among regional GCC companies, this figure rises to 81 percent. Furthermore, despite 97 percent of GCC respondents reporting some level of AI usage, only 10 percent claim to have a fully established AI governance system.
The Cooper Fitch survey revealed a noticeable gap in sentiment between management and employees directly involved in implementation. While 31 percent of executives stated that AI exceeded expectations, only 4 percent of functional leaders shared this view. Conversely, 41 percent of managers and 50 percent of frontline employees noted that AI was worse than expected, compared to 19 percent among executives.
Despite this divide, productivity improvement remains the most frequently cited measurable benefit of AI across all job levels—reported by 53 percent of executives, 68 percent of functional leaders, and 63 percent of managers. Revenue growth linked to AI was noted by only 4 percent of respondents in these groups.
The central issue identified in the report relates to the erosion of entry-level tasks—such as conducting research, drafting, administrative coordination, and routine data analysis, which traditionally served as a foundation for training junior staff in critical thinking and judgment. Respondents named the tasks most susceptible to automation as creating initial content drafts, compiling reports, basic research, administrative coordination, and solving routine problems.
Simultaneously, new roles emerging from AI adoption—such as Chief AI Officer, AI Governance Lead, and AI Strategist—primarily require prior experience or technical knowledge, with few identified pathways for entry-level specialists. The report poses the question: 'If future leaders receive fewer opportunities to develop judgment through independent problem-solving, will tomorrow's CEOs possess strategic vision or the ability to guide AI in generating strategy?'
The report also notes a significant increase in mid-level AI investment: 27 percent of respondents now report an annual AI budget ranging from $500,000 to $5 million, up from 19 percent in the previous survey. Investments exceeding $5 million remained relatively stable at 7 percent. UAE respondents were more likely to report high AI spending, as 11 percent indicated annual investments over $5 million, compared to 3 percent in Saudi Arabia. At the lower end, 44 percent of Saudi Arabian respondents reported budgets below $500,000, compared to 36 percent in the UAE.
Data privacy and regulatory risks have become a leading obstacle to AI development across various types of organizations, noted by 44 percent of regional GCC respondents and 45 percent of multinational corporations. The overall sentiment towards AI remains predominantly positive: 90 percent of respondents described their organization as either excited about AI or cautiously optimistic, although cautious optimism (46 percent) surpassed full enthusiasm as the dominant mood. Approximately 65 percent of respondents stated that AI outputs are always verified before use, emphasizing that human oversight remains a central element of decision-making, even as AI's role expands. Additionally, half of the multinational corporations surveyed reported using AI in decision-making processes.
