Game-Changing Impact Of AI On Businesses In Smart Cities Like Dubai

Artificial intelligence tools are driving change across industries and hold immense potential to make our cities smarter and more responsive to people's needs. While generative AI tools that can quickly curate text and develop images from simple prompts are currently making all AI-related noise, algorithms that take into account the needs of people can help administrators build cities that are cognisant of people's needs, their similarities, and differences to provide essential services equitably.

How AI is reshaping the economic landscape

"The AI innovation boom is reshaping the global economic landscape, propelling unprecedented levels of growth and efficiency," said Felix Laumann, the CEO of NeuralSpace, a company that is making language AI accessible in over 100 languages and locally-spoken dialects.

With standardisation of AI tools (that seems imminent in the near-future), many repetitive and mundane tasks would be eliminated. As Laumann explained, it would also reduce labour costs and the scope of human error. In turn, this will help increase efficiency and productivity while making room for human involvement in "more strategic, value-added tasks."

Felix Laumann

In addition, AI tools are able to process massive amounts of data in real-time, making way for insights that can have long-term impact on the decision-making processes within businesses. "AI understands customer behaviour and needs, allowing businesses to tailor their products and services," Laumann explained while adding how "this personal touch can really drive customer loyalty and, of course, sales!" With AI, there's also scope of new products, services, and entire business models. "For instance, AI has given rise to businesses based on autonomous vehicles, AI-assisted healthcare, personalised education, and more," Laumann said.

According to Vineesha HK, a regional thought leader and advisor of digital transformation in the UAE, AI can "enable governments to provide personalised citizen-centric services with improved delivery."

Vineesha HK

"People want to work, live, and travel to countries with better government services and policies... AI can support governments to make evidence-based policy decisions. Better policies and better public services result in a better quality of life, attracting people and investments, leading to stronger economies," she explained.

Also read: How Dubai's Innovation-First Approach Is Changing The Landscape Of Food Technology

Alexander Kap, the co-founder of AI For Business (AIFB) and Kaplink Company, claimed that "companies that are harnessing the power of AI are taking off like rockets. AI is like that behind-the-scenes team member who's always pulling the right strings. It dives into piles of data, predicts what customers want before they even know it, and makes products and services better.¡±

Alexander Kap

"Just like anything else that's powerful, AI can be a double-edged sword. On one hand, it's creating cool new jobs like AI developers or data analysts. But on the other hand, it's starting to replace some jobs, especially ones that are pretty repetitive. This brings to mind a valuable piece of advice from my rich dad - always have more than one income stream and be ready to adapt," Kap added.

Dubai's adoption of AI to set the tone

"With its tech-forward initiatives, Dubai is primed to harness AI's potential earlier than many global cities. The city¡¯s key sectors including banking, finance, legal, and government will likely be the earliest beneficiaries due to their considerable amount of internally accumulated data and sufficient funding to develop AI-based solutions," Felix Laumann said.

He explained how with the knowledge of AI's transformative potential, large Dubai-based enterprises are eager adopters. "They foresee the significant cost savings and operational enhancements that AI can bring. Moreover, with Dubai serving as a tech hub in the Middle East, the regional AI adoption trend is gaining momentum that will likely increase the pace of adoption for all industries in the region," he added.

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As Vineesha HK put it, Dubai is a" thriving hub of innovation and progress [that] exemplifies the UAE's commitment to harnessing the power of AI."

"With the presence of a dedicated Minister of AI, it is evident that the country recognises the immense potential of this technology. From government agencies to private enterprises, a wide range of industries in Dubai are embracing AI in their operations," she said.

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She highlighted how startups will be at the forefront of this adoption owing to their agility. "In addition, companies with a strong innovative digital culture and mindset are also more likely to effectively adopt AI irrespective of industry sector. Industries that have a robust digital foundation and higher digital maturity, such as e-commerce and finance, are well-positioned to integrate AI and reap its benefits," she added.

Also read: How Dubai Is Enabling Startup Culture And Attracting Global Entrepreneurs

Alexandar Kap said that AI's impact can already be felt in tech-savvy places like Dubai. "Over there, AI is not just some buzzword that gets thrown around at tech conferences. It's a reality that's transforming how the government works, how budgets are managed, and how public services are delivered."

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"In the farming world, AI is helping farmers plan when to plant, manage resources, and detect diseases early, which is resulting in better crop yields and more sustainable practices. In healthcare, AI is helping to diagnose diseases and discover new drugs, leading to better patient outcomes and lower costs," Kap added.

AI is not a foe, but a friend, Kap said. "It's a tool that can help us if we understand it and learn to adapt. Instead of fearing automation, we should be ready to roll with the punches, learn new skills, and adapt to this rapidly changing landscape."