Intelligent CIO Middle East Issue 111 | Page 69

DISRUPTIVE TECH

As we enter 2025 , the global economic landscape remains a mix of challenges and potential shifts that will shape markets and industries worldwide .

From high interest rates to the evolving impact of AI , there are several key factors that will define the year ahead . While there will be friction in some areas , persistence , agility and out-of-the-box thinking will ensure a competitive edge .
In 2025 , Europe and the UK will see a slow recovery , hampered by high interest rates and weak demand . The US may get a short-term boost under the Trump presidency , but rising debt and global trade tensions remain major risks .
The Middle East has emerged as a prominent player in the global AI landscape , driven by a mix of government and private investments in innovative technologies . By 2030 , AI is expected to deliver over US $ 320 billion in economic value , with countries like the UAE and Saudi Arabia leading the way in AI-driven economic transformation .
Where AI is concerned , 2025 is a turning point and by the end of the decade , AI is set to become a powerhouse for real productivity gains .
With challenge comes opportunity and by focusing on efficiency , smart investments , and embracing new technologies , businesses can expect to grow . However , rapid AI expansion brings a set of complex challenges .

AI readiness declined in 2024 with only 13 % ready for AI

AI will continue to captivate businesses , promising unprecedented innovation and efficiency , and companies will continue to invest in AI-powered solutions . As AI journeys progress , so too will the understanding that the path is fraught with hurdles .

Despite billions of dollars invested into AI models and AI-powered solutions in 2024 , new data from Cisco ’ s AI Readiness Index shows that AI readiness has declined as now only 13 % of companies are ready to leverage AI-powered technologies to their full potential .
In response to the rise of Agentic AI , we will see organisations implementing mandatory ethical guidelines to ensure fairness and transparency in algorithmic decisions and protecting intellectual property .
AI-powered humanoids will form a part of the future workforce . This will force companies to completely reimagine their workplace dynamics . For example , companies will need to ensure their connectivity has the right levels of latency and throughout to process and analyse data in real time . At the same time , organisations must ensure their security postures .
David Meads , Vice President Middle East , Africa , Türkiye , Romania , and CIS , Cisco
In 2025 organisations will grapple with how best to secure the right level of compute power to meet AI workloads . Companies will need to lean on their strategic partners to identify and prioritise their AI use cases . IT teams will experience increasing pressure to optimise the management , hygiene , which is currently spread across multiple systems and locations .
Many AI-powered tools in use today are based on static rules or datasets . Agentic AI differs in that it can continuously learn from user inputs and make decisions with little to no human oversight . Imagine a customer service AI that predicts user needs before a query is made , or a network management AI that identifies potential issues and resolves them autonomously , ensuring uninterrupted service .
This human and machine collaboration will be inspiring and allow organisations to greatly scale operations but will also likely trigger concerns about AI replacing jobs . Leaders will need to be clear and uncompromising about harnessing AI ’ s power without losing the human touch that defines world-class customer experiences .
Advancements in quantum computing are increasing pressure on security teams to address the vulnerabilities of traditional encryption methods against quantum attacks . As these technologies gain traction , organisations must adopt quantum-resistant security protocols to protect sensitive data .
The interconnectedness of digital ecosystems complicates security , making attacks more
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