Understanding G42’s Inception: The Risks of Superficial AI Adoption in Gulf Businesses
Executives across the Gulf region are enthusiastically rushing to incorporate artificial intelligence (AI) into their operations. However, a growing body of evidence suggests that many of these initiatives lack a coherent strategy, resulting in fragmented efforts, wasted resources, and unclear returns on investment (ROI). This pattern is concerning, especially as the region invests heavily in AI technology.
The Data Silos Dilemma
Ashish Koshy, CEO of Inception, a subsidiary of the Abu Dhabi-based technology group G42, emphasizes the challenges posed by data silos within organizations. He notes that many businesses operate isolated AI projects merely to "showcase" their capabilities, often failing to leverage this technology effectively. "You end up having 500 use cases that don’t talk to each other," Koshy said, referring to the lack of integration that could create real impact.
In effect, while companies become consumed by the buzz around AI, they may not be addressing how to concretely apply the technology in ways that resonate across departments. This deficiency ultimately leads to missed opportunities for synergy and more meaningful outcomes.
The Shift Needed in AI Strategy
Despite the initial interest and investment in AI, experts indicate that many companies in the Gulf region are still in the early stages of their AI journeys. They are primarily focused on increased automation and productivity but are falling short of leveraging AI for competitive advantage. Mahesh Jaishankar, a Dubai-based independent technology analyst, highlights the potential for organizations to move beyond siloed projects. “We are starting to see businesses pivot from merely showcasing AI to actually measuring its impact,” he explains.
A concerning statistic from IDC’s research indicates that the majority of AI pilot programs fail to progress beyond the initial testing phase. Out of every 33 AI proof-of-concepts initiated, only four enter production. This statistic raises alarms about the disconnect between investment and tangible results, and highlights a pressing need for a more structured approach.
The Pitfalls of Pilot Programs
The challenges associated with AI pilot programs are further underscored by a report from the Massachusetts Institute of Technology, which reveals that a staggering 95% of these pilot programs fail to make a discernible positive impact on organizations’ bottom lines. This is compounded by IBM’s survey of 2,000 CEOs across 30 countries, which indicates that only 25% of AI projects meet ROI expectations.
In light of these disconcerting trends, Raakin Iqbal, co-founder and CEO of Dubai-based Nucleus AI, critiques the prevalent mindset of pursuing “AI for AI’s sake” rather than addressing specific organizational challenges. "This leads to a workflow gap," he notes, stressing that businesses should identify real-world needs first rather than defaulting to popular models like OpenAI’s ChatGPT or Google’s Gemini.
Rethinking the Approach to AI
Koshy warns against the tendency to launch disjointed AI projects without measurable outcomes. Identifying and targeting significant operational challenges is vital. Executives must focus on time-consuming problems where AI can create substantial value, rather than getting swept away by the technology hype.
The realization of effective AI integration often requires a mindset shift. Many business leaders still grapple with understanding how AI can be tailored to their specific needs. According to a 2025 survey by the UK’s Institute of Directors, about half of British business leaders admit they do not fully comprehend AI’s functions and benefits. Furthermore, 64% of IBM-queried executives admit that their fear of falling behind the competition drives investment decisions, even before a clear understanding of AI’s value is established.
Taking Small Steps Towards AI Integration
Iqbal advocates for a more measured approach to AI adoption: starting small and focusing on unit economics can prove beneficial. By tracking and measuring the cost of aided decisions against the dollar value they generate, companies can better assess their AI investments.
This strategy allows businesses not only to accumulate insights steadily but also to craft coherent ecosystems where disparate projects can become integrated. Siloed approaches do not just pose strategic risks; they actively diminish the potential for AI to create a symbiotic relationship across an organization’s functions.
Conclusion
As the narrative around AI continues to evolve, the Gulf businesses must navigate the landscape with a clear strategy. The pressing challenge is to move beyond hype-driven superficial adoption and embrace a more structured and integrated approach. By focusing on real-world challenges and measuring success through targeted metrics, organizations can unlock AI’s potential, driving true value.
G42’s Inception and other organizations in this space represent a growing realization that effective AI application is not merely about launching projects but ensuring they are interconnected and strategically aligned. The onus is on executives to champion this change—by prioritizing understanding their real operational needs, crafting defined goals, and measuring progress, businesses can pave the way for a future where AI generates meaningful, quantifiable results.
