AI Adoption Rose By 56% In MENA In 2021

Rabat – The adoption of Artificial Intelligence (AI) continues to gain momentum in emerging markets including the Middle East and North Africa (MENA), according to a report by McKinsey & Company.

The report, titled “The State of AI in 2021,” provides an overview of AI adoption across emerging markets by compiling data from surveys from a large sample of companies operating within all economic sectors.

Unhindered by the spread of COVID-19, the adoption of AI accelerated to 56% in 2021, rising from 45% in 2020, according to the report.

AI positively impacts companies’ bottom line in emerging economies, as 27% of companies surveyed by McKinsey & Company report at least a 5% increase in their returns thanks to adopting AI, the report explained.

65% of surveyed marketing and sales companies reported an increase in profits thanks to their adoption of AI in 2020, up from 57% in 2019, with 31% of companies reporting at least a 6% increase in profits.

Companies in emerging markets especially harnessed AI to optimize service operations, enhance products, and automate contact centers, with cost optimization at the top of the functions benefiting from the widespread AI adoption.

AI adoption helped many companies boost profits by slashing operational costs, according to the report. In the service sector, 87% of surveyed companies in 2020 reported a cost decrease following AI adoption, up from 54% year-to-year.

51% of companies in the service sector reporting a decrease in cost said that AI adoption slashed their operational cost by 20% or more.

Manufacturing is the second-largest sector benefiting from AI adoption in emerging markets, with 87% of surveyed companies reporting a decrease in operational costs, up from 52% year-to-year, according to Mckinsey & Company data.

Companies engaged in mitigating the risk of AI have a higher level of return compared with other companies.