Beirut, 17 July 2025--As artificial intelligence (AI) rapidly reshapes the global landscape, it brings with it a host of complex challenges that demand urgent attention. Ethical dilemmas, data governance concerns, algorithmic bias, and the risk of exacerbating existing inequalities are all intensifying as AI technologies evolve. These risks underscore the critical need for robust regulatory frameworks and inclusive policymaking to ensure AI development remains equitable and responsible.
Amid this paradigm shift, the United Nations Economic and Social Commission for Western Asia (ESCWA) released a report on "Artificial Intelligence Futures for the Arab Region," exploring the transformative power of AI and its potential to revolutionize key sectors like health care, education, and government services, and examining its far-reaching implications for the region through 2040.
The world is accelerating AI adoption at an unprecedented pace. Since 2022, the Arab region has been steadily advancing its AI capabilities-surpassing even the adoption rates of mobile phones and the internet. While AI is projected to displace approximately 83 million jobs globally, it is also expected to create 69 million new ones.
"The pace of AI advancement leaves no room for delay," said ESCWA Executive Secretary Rola Dashti. "Arab leaders must act decisively to unlock its transformative power while mitigating the complex risks it introduces."
The report reveals that by the end of 2024, 35% of the world's businesses had integrated AI technologies into their operations, while another 42% were considering AI for future implementation. Moreover, over half of enterprises with more than 5,000 employees are already utilizing AI. Additionally, more than 90% of government organizations surveyed globally are either using or exploring AI.
AI is also reshaping the labour market, according to the report. Skill gaps remain the most significant barrier to business transformation, with 63% of employers identifying this as a top challenge between 2025 and 2030. In response, 85% of employers plan to invest in workforce upskilling, while 70% intend to hire talent with new skills.
In the Arab region, AI is increasingly seen as a driver of innovation and sustainable development. The report explores pathways for further embracing it, namely optimizing AI technologies and partnerships for local priorities; investing in AI services rooted in the Arab region's language and culture as a whole; or accelerating the application of AI against specific Sustainable Development Goal (SDG) targets.
"The report offers a timely road map to ensure that AI becomes a catalyst for inclusive, equitable, and sustainable development, aligned with the region's unique aspirations and priorities," Dashti added.
The report calls for the development and adoption of a unified AI governance framework for the region tackling privacy, safety and ethical concerns; the diversification of partnerships for AI, namely with the Global South; the establishment of a region-wide job skill programme leveraging AI tools; and the promotion of data sharing across the region on open source platforms to encourage AI innovation for advancing the SDGs.
It also concludes with stressing the need for a proactive, cross-disciplinary approach to AI policy that looks beyond the short term and considers the long-term, multigenerational implications of this technological shift.
