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UAE IT Leaders Embrace Agentic AI Despite Major Compliance Gaps

by Faith Amonimo
June 25, 2025
in Artifical Intelligence
Reading Time: 5 mins read
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UAE IT security leaders are backing agentic AI with near-universal enthusiasm, but a new study reveals serious gaps in organizational readiness that could slow adoption across the region. The findings highlight a growing tension between AI ambitions and practical implementation challenges.

Universal Optimism Meets Reality Check

Every single UAE IT security leader surveyed recognizes that AI agents could improve at least one aspect of their security operations, according to Salesforce’s latest State of IT report covering over 2,000 enterprise leaders globally. This unanimous optimism represents one of the strongest regional endorsements for agentic AI technology.

But the enthusiasm comes with substantial caveats. Nearly two-thirds of UAE enterprise IT security leaders worry their data foundations aren’t ready to support agentic AI effectively. Even more concerning, 42% lack confidence in their ability to deploy proper guardrails for AI agents.

“The research underscores the confidence that organizations in the UAE have in agentic AI, but it also reveals significant concerns that must be addressed,” said Mohammed Alkhotani, SVP and GM at Salesforce Middle East.

Compliance Creates Double-Edged Challenge

The compliance picture presents a complex paradox. While 84% of UAE IT leaders believe AI agents offer opportunities to strengthen regulatory adherence, 86% simultaneously see them as compliance challenges. This tension reflects the rapidly evolving regulatory landscape across industries and geographies.

Only 42% of UAE organizations feel fully confident they can deploy AI agents while meeting all relevant regulations and standards. The problem is compounded by manual processes – 90% of UAE organizations still haven’t fully automated their compliance procedures.

Alice Steinglass, EVP & GM of Salesforce Platform, Integration and Automation, emphasized the foundation required: “Trusted AI agents are built on trusted data. IT security teams that prioritize data governance will be able to augment their security capabilities with agents while protecting data and staying compliant.”

Trust Gap Widens as Adoption Accelerates

Consumer trust in AI ethics continues declining, with only 42% of people trusting companies to use AI ethically – down from 58% in 2023. This erosion creates additional pressure on organizations to demonstrate responsible AI deployment.

The trust challenges extend to technical capabilities. Globally, 57% of organizations lack full confidence in their AI outputs’ accuracy or explainability. Meanwhile, 60% don’t provide complete transparency about how customer data feeds into AI systems, and 59% haven’t finalized ethical guidelines for AI use.

Despite these concerns, AI agent adoption in UAE IT security teams is set to surge from 32% today to an expected 80% within two years – representing a 150% increase.

Data Infrastructure Takes Priority

Organizations appear to recognize the foundational challenges. A separate CIO survey found companies allocating four times more budget to data infrastructure and management than to AI itself, signaling smart preparation for broader implementation.

This infrastructure-first approach aligns with expert recommendations. “AI agents are undergoing a remarkable evolution, transitioning from performing repetitive tasks to becoming strategic enablers of innovation and efficiency,” said Ahmed Shabrawy, co-founder and CIO of communications service provider Cequens.

Regional AI Governance Still Developing

The compliance challenges reflect a broader regional reality. Unlike Europe’s AI Act or emerging US regulations, the Middle East lacks comprehensive AI governance frameworks. Current UAE AI policy relies on guidelines and principles rather than binding regulations.

Jessica Constantinidis, Field Innovation Officer EMEA at ServiceNow, noted this regulatory gap: “There is the AI pact in Europe, but no AI pact yet in the Middle East, and there is no clear AI pact yet in the US. But the moment you shift into agentic AI, it’s the same rule as any AI.”

The UAE has made progress with its National Strategy for Artificial Intelligence 2031 and recent AI charter launch, but these remain primarily strategic frameworks rather than detailed compliance requirements.

Market Forces Drive Continued Investment

Despite readiness concerns, market momentum continues building. The global AI agents market is projected to grow from $5.29 billion in 2024 to $216.8 billion by 2035, representing a 40.15% compound annual growth rate.

Investment appetite remains strong, with 87% of organizations planning to increase GenAI funding. However, 85% of company leaders report growing pressure from executives to quantify AI return on investment.

Alfred Manasseh, co-founder of AI workforce startup Shaffra, sees sustained regional demand: “There is a big appetite for many organizations to automate and become more proficient. And that’s being felt across the board, particularly across the GCC.”

Security Teams Adapt to New Threat Landscape

The urgency around AI agent adoption partly stems from evolving security challenges. IT leaders now cite data poisoning – where malicious actors compromise AI training datasets – among their top concerns alongside traditional threats like malware and phishing.

In response, 74% of UAE organizations expect to increase security budgets over the coming year. The investment reflects recognition that both defenders and attackers are increasingly incorporating AI into their toolkits.

Path Forward Requires Balanced Approach

The research reveals a critical inflection point for UAE organizations. While agentic AI offers significant potential for operational efficiency and security enhancement, successful deployment requires addressing fundamental infrastructure and governance gaps.

Organizations that move too quickly risk compliance failures and security vulnerabilities. Those that wait too long may lose competitive advantage as AI capabilities become table stakes across industries.

The key lies in building trustworthy AI ecosystems through robust data governance, comprehensive compliance automation, and transparent ethical frameworks – all while maintaining the innovation momentum that has positioned the UAE as a regional AI leader.

Tags: AI ComplianceArtificial Intelligencedigital transformationenterprise AIIT SecurityMiddle East TechUAE Technology
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