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UAE Businesses Face AI Adoption Challenges Amid Economic Pressures

UAE Businesses Face AI Adoption Challenges Amid Economic Pressures

First seen 17 Oct 2026, 16:47 UTC • •
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ThreatCluster AI
ThreatCluster •October 18, 2026 at 00:09 UTC
  • •82% of UAE organizations are more selective in technology investments due to economic pressures.
  • •68% of IT leaders report that security and compliance concerns hinder AI adoption.
  • •90% of leaders expect cybersecurity to be integrated into all technology proposals.

A recent study by Dell Technologies and Vanson Bourne surveyed 1,500 business and IT decision-makers in the UAE, revealing that economic uncertainty is driving organizations to prioritize value and efficiency in technology investments. 82% of respondents reported becoming more selective in their technology spending, with 86% favoring consolidation through a single strategic partner. AI adoption is hindered by security, compliance, and privacy concerns, with 68% of leaders citing these issues as obstacles. Additionally, 68% of IT leaders believe their infrastructure is unprepared for AI workloads. Cybersecurity is now considered essential, with 90% of leaders expecting security to be integrated into technology proposals. The UAE's regulatory landscape, including the Critical Information Infrastructure Protection framework, emphasizes the importance of built-in security and resilience, making cyber readiness a priority at the board level.

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Timeline

2026-06-01
Survey conducted
Dell Technologies and Vanson Bourne conducted the Modern Enterprise Readiness Study, surveying 1,500 decision-makers in the UAE.
Msspalert
2026-10-16
Study findings released
Dell Technologies published the findings of the Modern Enterprise Readiness Study, highlighting key trends in technology investments across the UAE.
TahawulTech

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Common questions

What are the main challenges for UAE businesses in adopting AI?
The main challenges include security, compliance, and privacy concerns, with 68% of IT leaders reporting these as obstacles.
How are economic pressures affecting technology investments?
Economic pressures are making 82% of organizations more selective in their technology investments, focusing on value and efficiency.
What role does cybersecurity play in technology proposals?
Cybersecurity is now expected to be integrated into all technology proposals, with 90% of leaders emphasizing its importance.