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JEDDAH: The Jeddah Chapter of the American Chamber of Commerce in �������� recently hosted an event exploring the transformative role of artificial intelligence in reshaping the Kingdom’s economic landscape.

Moderated by Maha Akeel, lecturer at Dar Al-Hekma University, the event brought together industry leaders, policymakers, and small and medium-sized enterprise owners to discuss practical approaches to leveraging AI for the scalability of SMEs in ��������.

The panel featured distinguished speakers, including Fatmah Baothman, associate professor of AI at King Abdulaziz University; Loulwa Bakr, senior partner at Chrome Advisory; Nizar Kammourie, CEO of SAWACO Water Group; and Fawaz Abu-Ghazaleh, CEO of Remedium Network.

The experts highlighted key aspects of AI’s impact on businesses, investment potential, and economic development in alignment with ��������’s Vision 2030.

Baothman, emphasizing the Kingdom’s significant strides in AI adoption, said: “The landscape of AI is growing rapidly in the Kingdom, and this requires efforts from everyone. The tangible investments in AI across various sectors are evident worldwide.

“�������� is not limiting itself to oil and gas; it is focusing on economic growth and talent development, which will reshape the economy over the next 10 to 20 years.”

According to a PwC report, the projected return on investment from AI is expected to reach $135 billion by 2030, and Baothman believes the actual figure could be even higher given the Kingdom’s focus on innovation and economic diversification.

The conversation also turned to the challenges and opportunities for women-led SMEs. Baothman addressed the existing funding gap and market competition, emphasizing the need for targeted initiatives to empower women in AI and business.

“AI is changing the economic landscape, and �������� has established various programs with ministries and councils to support SMEs. I believe there are plans to focus on better investments that empower women in AI and other sectors,” she said, adding, “The door is open for international companies to invest in ��������, and this will create more opportunities for women-led businesses.”

Akeel highlighted the progress women have made, noting that women now make up 34 percent of the labor force, exceeding the Vision 2030 target of 30 percent, and AI is playing a significant role in this progress.

Bakr added: “As investors at Chrome Advisory, we’ve witnessed the evolution of tech adoption, particularly with AI, in the startup and SME ecosystem. However, the challenges facing SMEs in emerging markets, including ��������, are universal.

“Implementing AI requires significant investment in both hard infrastructure — like data centers and power — and soft infrastructure, such as human capital. The human capital pool is tight, and even well-resourced SMEs struggle to find the right talent. Regulatory frameworks also need to catch up to address critical issues like intellectual property protection, data privacy, and ethical governance. Additionally, there’s reluctance among business owners to adopt AI due to lack of awareness, fear of disruption, or uncertainty about the right timing. The high cost of overhauling outdated systems is another major barrier for SMEs who rely on them to run their operations efficiently.”

Baothman noted that programs developed by the Saudi Data and Artificial Intelligence Authority are helping SMEs integrate AI into their operations.

Abu-Ghazaleh focused on AI’s role in sustainability and compliance, sharing insights from his experience at Remedium Network. “AI can learn from past responses and streamline repetitive tasks, such as documentation for environmental permits. This not only increases efficiency but also frees up time for businesses to focus on core challenges,” he said.

“Language models can guide managers through complex regulatory processes, making compliance more accessible.”

He also advised startups in the climate change sector to be technology-agnostic and focus on solving specific challenges before diving into AI.

Addressing the issue of algorithmic bias against female entrepreneurs, Bakr stressed the importance of recognizing and correcting these biases:

“The first step to changing any bias is recognizing it exists. Language models are created by humans, and they inherit human biases. To level the playing field, we need programs that specifically target and incentivize women’s participation in AI. Financial support and grants should be structured to encourage AI-enabled initiatives, creating a more inclusive ecosystem.”

The event underscored the transformative potential of AI in driving economic growth and innovation in ��������. As Baothman aptly put it, “What is happening now in �������� is really amazing. The focus on talent and economic diversification is changing the landscape, and AI will play a pivotal role in this transformation.”

By fostering collaboration, building capacity, and promoting investment, events like these are paving the way for a more competitive and diversified economy, where SMEs — especially those led by women — can thrive in the age of AI.

According to Kammourie, the four key pillars for SMEs to successfully adopt AI are: data sufficiency and collection; forming strategic partnerships with startups and leveraging cloud-sharing to mitigate the costs of building AI infrastructure; upskilling the workforce; and aligning with regulatory frameworks, such as ��������’s National Strategy for AI, which presents opportunities for SMEs to access financial support and drive growth through AI innovations.

Nausherwan Hafeez, president of AmCham ��������’s Jeddah Chapter, said: “With AI’s growth globally and rapid adoption in KSA specifically, this event did an excellent job of showcasing the utilization of AI across industries. Learning about the impact on industries helps illustrate why the AI sector is projected to contribute to 12 percent of the national GDP by 2030.”

Zeina Al-Nouri, Jeddah Chapter head of events and programs, said: “AI has become a key driver of economic growth and innovation, especially for SMEs in ��������. By bringing together industry leaders, our event aimed to equip businesses with the insights needed to leverage AI effectively, fostering a more competitive and diversified economy.”