Fears that artificial intelligence will lead to widespread job losses across the UAE and Gulf Cooperation Council have eased significantly over the past year, even as businesses continue to change how work is organised, according to a new report by Cooper Fitch.
The AI & the Future of Talent 2027 report found that 14 per cent of respondents expect AI-related reductions in roles over the next 12 to 24 months, down from 31 per cent in the previous survey.
Rather than removing positions, many organisations are combining tasks and responsibilities. About 22 per cent of respondents said role consolidation is already taking place, while another 41 per cent are considering such changes.
AI adoption has also expanded rapidly. Nearly two-thirds of respondents said their organisations have reached functional adoption or a more advanced stage, compared with about 19 per cent reporting functional adoption last year. Across the UAE and GCC, 44 per cent reported specific-use adoption, while 8 per cent said AI is fully embedded across their operations.
However, governance has failed to keep pace. The report found that 57 per cent of organisations have either no formal AI governance framework or one that remains informal and developing. Among GCC regional companies, the figure rises to 81 per cent.
Only 10 per cent of GCC respondents said their AI governance arrangements are fully established, despite 97 per cent reporting some level of AI adoption.
The survey also highlighted a significant difference in attitudes between senior executives and employees involved in daily implementation. About 31 per cent of executives said AI had exceeded expectations, compared with only 4 per cent of heads of function. Meanwhile, 41 per cent of managers and half of individual contributors said AI had performed below expectations.
Productivity was the most widely reported measurable benefit, cited by 53 per cent of executives, 68 per cent of heads of function and 63 per cent of managers. Only 4 per cent identified AI-linked revenue growth as a measurable benefit.
The report raised concerns about entry-level employment, as AI increasingly handles tasks such as basic research, first drafts, reporting, administrative coordination and routine problem-solving. These duties have traditionally helped junior employees develop judgement and critical-thinking skills.
New AI-related positions, including chief AI officers, governance leads and AI strategists, generally require experience or technical expertise, potentially leaving fewer opportunities for workers starting their careers.
AI investment is also increasing. Some 27 per cent of respondents reported annual budgets between $500,000 and $5 million, up from 19 per cent previously. Spending above $5 million remained at 7 per cent.
Data privacy and regulatory risks were identified as the leading barriers to AI advancement. Despite these concerns, 90 per cent of respondents described their organisations as excited about AI or cautiously optimistic.
About 65 per cent said AI-generated outputs are always reviewed before use, showing that human oversight remains a central part of workplace decision-making.
