AI Adoption in Saudi Businesses Rises Sharply as Digital Transformation Accelerates

Artificial intelligence adoption among businesses in Saudi Arabia climbed to 33.1% in 2025, marking a 20% increase compared with the previous year, according to official data released by the General Authority for Statistics (GASTAT). The figures highlight a rapid expansion of digital transformation across the Kingdom’s private sector, with companies increasingly integrating advanced technologies into their operations.

The report showed that the information and communications technology sector led the way, with 61.1% of establishments using AI tools. It was followed by financial and insurance activities at 52.9%, and the education sector at 51%, reflecting strong uptake in knowledge-driven industries.

Other sectors also recorded significant adoption rates, including transportation and storage at 44.4% and professional services at 43.9%. GASTAT said these figures underline a broad-based shift toward digital systems, with AI becoming an increasingly central component of business operations across multiple industries.

The agency noted that digital infrastructure in the Kingdom is now widely established. According to the report, 98.1% of establishments have internet access, forming the backbone of continued technological expansion. Usage of e-government services reached 93.2%, showing strong engagement with digital public services.

The report further stated that 79.1% of businesses use the internet for electronic banking, while 66.3% are active on social media platforms. In addition, 52.3% of establishments use social media to promote products and services, reflecting the growing importance of digital marketing in corporate strategies.

Adoption of Internet of Things (IoT) technologies is also expanding. GASTAT found that 71.4% of businesses use IoT systems for building security, including smart alarms, surveillance cameras, fire detection, and automated access controls. Meanwhile, 54.6% use IoT for customer service applications, 40% for managing energy consumption, and 25.4% for maintenance operations.

E-commerce continues to gain traction, with 33.5% of establishments using online platforms to sell or showcase goods and services. The financial and insurance sector recorded the highest share at 48.5%. Among companies receiving online orders, 28% now complete deliveries digitally, reflecting a gradual shift toward fully integrated online transactions.

Cloud computing has also become a key part of business infrastructure, with 51.3% of establishments using cloud-based services. Within this group, 56.4% rely on cloud office software, 55.3% use cloud email systems, and 42.8% store data in cloud environments. Compared with 2024, usage rates increased across all categories, including a 9.9% rise in cloud email adoption.

GASTAT said the Establishments’ ICT Access and Usage Survey follows international standards set by the UN Conference on Trade and Development, ensuring the reliability and comparability of the data. The findings point to a sustained acceleration in Saudi Arabia’s shift toward a more digitally driven business environment.

Leave a Reply