Legacy technology remains a significant constraint for UAE organizations, slowing AI maturity despite strong AI investments, finds the report.
ServiceNow has released UAE-specific findings from its Enterprise AI Maturity Index, exposing a critical disconnect between organizations’ AI spend and execution. Despite a 105% year-on-year increase in AI spending, UAE organizations achieved an AI maturity score of 48 out of 100, the report finds. The report highlights the shortcomings that must be addressed as UAE organizations move from early experimentation toward more advanced execution.
The ServiceNow report findings suggest the gap is not due to a lack of investment and UAE organizations expect AI to account for almost one-fifth of total IT budgets by 2027. Instead, the research shows many organizations are still trying to layer AI onto fragmented technology environments, disconnected data and siloed workflows.
While organizations have made noteworthy progress in AI vision, strategy and leadership, execution remains constrained by lower maturity in AI-enabled workflows and talent development.
While agentic AI has emerged as one of the region’s defining technology trends this year, the report suggests that, in reality, organizations are approaching autonomous AI deployment cautiously. The priority remains governance, trust and operational foundations needed to scale it safely.
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According to the report, currently, more than half (57%) of UAE organizations have implemented agentic AI, but only 7% have used it to build autonomous workflows. In most organizations, AI is still helping employees work more efficiently rather than transforming how the business operates.
“The UAE remains one of the world’s most ambitious AI markets. The government’s long-term strategy and regulatory leadership have given organizations a genuine head start,” said Saif Mashat, VP – Middle East & Africa at ServiceNow. “While UAE organizations have built the financial and strategic commitment to AI, the ones pulling ahead are moving from AI pilots to AI orchestration, connecting legacy systems, data, governance, and AI agents in one control tower. That’s where enterprise-wide execution begins.”
Report identifies Challenges UAE Organizations must address to regain their AI Maturity edge.
Legacy technology remains a significant constraint, with just 14% of organizations having replaced legacy systems with integrated platforms.
Data readiness also continues to hold organizations back. More than three-quarters (77%) of UAE executives cite inadequate data accuracy, access and management as a major barrier to AI adoption.
Finally, the report shows that organizations with the highest levels of AI maturity take a broader approach to AI transformation, than simply investing in new technologies. They are significantly more likely to establish a shared AI strategy, modernize and integrate their data, deploy autonomous AI workflows, invest in continuous workforce upskilling, and embed trust and transparency into AI governance.
As a result, these businesses achieve an average AI ROI of 160%, rising to a projected 194% within two years. They are also 5.6 times more productive, 2.7 times more successful at scaling AI and 2.6 times more effective at managing risk, finds the report.
In the UAE, however, only 16% of organizations have implemented AI testing, auditing and risk management processes, highlighting a significant opportunity to strengthen the governance foundations needed for AI at scale.
“The organizations pulling ahead are no longer distinguished by how much they spend on AI, but by how effectively they operationalize it. This requires moving from point solutions to unified, orchestrated platforms,” said Mashat. “Strong governance, connected data and orchestrated workflows are what translate investment into business outcomes. Together, these give organizations the confidence to scale AI, manage risk and generate measurable returns. The UAE government has already created many of the conditions for AI leadership. The challenge for enterprises now is to bring that same discipline and consistency into their own organizations.”
Disclaimer: The findings and statistics referenced in this article are based on the Enterprise AI Maturity Index 2026, conducted by ThoughtLab on behalf of ServiceNow. Readers are encouraged to refer to the full research for additional details.
