Artificial intelligence has entered a pivotal stage in its evolution. What began as an experimental technology is now a defining force shaping economies, industries, and societies worldwide. From enhancing productivity to transforming how we make decisions, AI has become a central pillar of competitiveness. We have long ago left behind the possibility that AI adoption is optional; now, we must define how we use it to create sustainable value, bridge skills gaps, and ensure equitable progress.
Much like the arrival of the internet three decades ago, most would agree that AI is now an integral element of many parts of everyday life, and its influence is set to extend to every sector of the economy, every type of job, and every level of society in the coming years.
While the global conversation on AI often focuses on competition, this is not a race to be the fastest; the focus is on effectiveness, or who harnesses AI most productively to drive sustainable growth, inclusion, and progress.
The technology is shaping boardroom decisions, redefining industries, and transforming how consumers live, work, and interact. According to McKinsey, 78 per cent of organisations worldwide are now using AI in at least one business function, compared with 55 per cent a year earlier. This acceleration marks the beginning of a new economic cycle driven by informed intelligence, not simple automation.
Growth in productivity
AI is enhancing productivity across industries, from manufacturing and logistics to healthcare and financial services. In banking, it enables smarter risk modelling, real-time fraud detection, and more personalised customer experiences. It also improves operational efficiency by automating repetitive processes and allowing professionals to focus on creative and strategic work.
The potential economic value is immense. McKinsey estimates that generative AI alone could lift the productivity of the global banking sector by between 2.8 and 4.7 per cent of annual revenues. This translates into stronger financial performance, but more importantly, it enhances human potential. When technology takes over what is, by nature, mechanical, people gain time to innovate, collaborate, and solve higher-order challenges.
AI, therefore, creates an economy that is faster, smarter, and ultimately more human in its value creation.
Redefining financial systems and economic value
In financial services, AI is redefining how value is generated and distributed. Hyper-personalised products, predictive analytics, and adaptive fraud detection systems are improving efficiency and <a href="https://jordangazette.com/dbm-studio-founder-mahsa-gholizadeh-on-building-without-investors/”>building greater trust. On a broader level, AI-driven insights are influencing capital allocation, investment strategies, and risk management, fundamentally changing how economies function.
Financial institutions that use AI responsibly are finding new ways to enhance transparency, accessibility, and customer confidence. They are improving credit assessment, enhancing financial inclusion, and building resilience into the financial system, all through combining data and decision science.
Economic impact and challenges ahead
AI is becoming a cornerstone of economic resilience. It unlocks efficiency gains, enables new business models, and creates smarter resource allocation. Yet the true challenge for governments and industries is more about the integration process: how can we embed AI responsibly, ethically, and at scale?
This requires significant investment in people. 46 per cent of business leaders globally cite skill gaps as a major barrier to AI adoption, and job postings related to agentic AI have increased almost tenfold over the past year. The economies that prioritise digital education, data literacy, and reskilling will be the ones that unlock the full potential of AI. Those who do not will struggle to keep pace with transformation.
For the GCC, this point in time holds a particular promise
With diversification at the heart of every national strategy and agenda, AI can accelerate growth across finance, manufacturing, logistics, and public services. It can help create high-skilled employment, expand digital inclusion, and position the region as a leader in innovation-driven economic development.
Leading responsibly in an intelligent future
The AI arms race is not a race to build the most powerful systems; it is a race to use such systems most effectively. According to reports, generative AI could create between $2.6tn and $4.4tn in value across global industries. This scale of impact will determine which economies lead in the next decade.
AI should be seen as a toolkit for growth, inclusion, and resilience, and as an enabler of progress, not a threat to it. Economies that combine technological investment with strong governance, clear ethics, and a focus on human capability will shape the next chapter of global prosperity. We must all consider how to adopt AI with purpose, while ensuring the technology serves people, drives innovation, and builds a future defined by shared progress.
The writer is the group head of Technology, Transformation & Information at Mashreq.