New Lenovo research reveals Middle East business and IT decision makers are highly satisfied with AI projects in the world, as AI investment will grow to by 72% in the region in 2025
Business leaders and IT decision makers in EMEA report the highest satisfaction with AI projects globally in the last 12 months, fueling a 104% increase in expected AI investments this year, with 72% increase in the Middle East according to new research from Lenovo. The AInomics CIO Playbook 2025, with research insights from IDC, found that while investment and confidence in AI continue to grow, critical challenges remain around training staff, poor data quality and scaling initiatives.
The research, undertaken with business leaders and IT decision makers from mid to large-sized businesses across Middle East, uncovered that 49% of AI projects undertaken in the last 12 months at least met expectations, and 44% exceeded them, among the highest rates across all markets seconded only to Eastern Europe (51%). The region is also highly optimistic about AI adoption, with 10% planning to start use of AI in the next 12months, while 38% are already in early stages of development.
Generative AI driving AI investment growth areas
With this satisfaction comes a change in priorities around AI investment, as businesses grapple with where it will have the biggest impact. Generative AI will be the primary AI focus for the next 12 months, with a massive increase from 5% in the last 12 months to 56% in the next 12 months, at the expense of the focus given to predictive and interpretive AI platforms.
Looking at other AI technologies, 40% of organizations in the Middle East highlighted that they will be developing data management capabilities in the next 12 months. This includes a 43% in Public Cloud technologies, while on-premise private cloud sees 27% in deployment. The primary infrastructure approach to AI workloads focuses more on on-premises, private or hybrid with 77%, while public cloud sees 14%. Organizations in the Middle East also seek for their AI partner to support in data security and privacy, with strong AI knowledge and experience in scaling AI solutions.
This further aligns with business priorities set in 2025, which focus primarily on optimizing supply chain and inventory, with an increase in agility and responsiveness. While increase in revenue and profits are always a priority, business in the Middle East also aim to drive digital business innovation, while enhancing overall decision making.
Data challenges pose obstacles for AI implementation
Despite the enthusiasm and increases in adoption, more work is needed to realize the full potential of AI in Middle East. Where AI projects are not meeting expectations, the top reasons for this were challenges scaling AI and the unavailability or cost of AI expertise. Other challenges presented includes application latency or performance issues as well as the endpoints for AI solution deployment. IT infrastructure costs were also noted as a challenge that affects the region.
Greg Smith, Executive Director and General Manager, EMEA Lenovo Solutions & Services Group said: “With enthusiasm around AI high in the region, businesses must work hard to overcome barriers to its adoption and integration to avoid disillusionment and drive return on investment. Leaders are quickly growing in confidence and looking to diversify their approach with models like AI-as-a-Service. Leveraging the right expertise and professional services will help maximize the successes that AI can bring, opening the door for targeted adoption that helps solve business challenges and drive growth.”
To overcome these hurdles, businesses are facing four equally pressing factors in ensuring successful AI implementation: data sovereignty and compliance (32%), the ease of integrating AI with existing systems and processes (32%), employee training and upskilling (31%) and the ready availability of quality data (31%).
Hybrid infrastructure is key for AI
While on-premises or hybrid infrastructure is the most opt-ed for solution (77%) in the Middle East, 14% still opt for Public Cloud. Additionally,14% of Middle East organizations extensively use AI PCs, 24% are currently piloting AI PCs, with a further 62% planning on or evaluating integrating the devices soon to maximize their AI capabilities.
Giovanni Di Filippo, President of EMEA, Infrastructure Solutions Group at Lenovo explained: “The EMEA markets present a diverse landscape of AI adoption and it is clear that most organizations have moved past the hype phase of AI and have shifted focus from experimentation to full implementation. As organizations across Middle East look to move into AI growth areas, their preference for a mixture of on-prem and hybrid AI hardware is driven by the need to retain control over data security and privacy, crucial for handling sensitive information and ensuring regulatory compliance.”
Preben Fjeld, VP and General Manager Personal Computing Devices Services, Lenovo EMEA commented: “Businesses are increasingly prioritizing technology that supports AI-driven workforce productivity, and 2025 will mark a major shift in AI PC implementation as organizations move from piloting to implementing new devices. With the availability of AI PCs and edge devices being a top factor for successful AI implementation, success can only come from a coherent, joined up AI strategy.”
