AI is not killing jobs in UAE, GCC, but reshaping roles, says new report
The latest Cooper Fitch survey reveals that fears of AI-driven layoffs in the UAE and GCC have dropped, while AI is redefining job responsibilities. Organizations are consolidating tasks rather than eliminating positions, and governance frameworks lag behind adoption. The report highlights a divide…
Over the past year, concerns that artificial intelligence would wipe out jobs across the United Arab Emirates and the Gulf Cooperation Council have softened dramatically, according to a new Cooper Fitch study. The research, titled "AI & the Future of Talent 2027," finds that only 14 % of respondents now anticipate AI‑related role reductions within the next 12 to 24 months, a steep decline from 31 % in the previous year’s survey.
AI is reshaping, not eliminating, roles
Rather than cutting positions outright, companies are consolidating tasks and responsibilities. About 22 % of organizations are already merging roles, while 41 % are exploring such consolidation. This trend reflects a shift toward more efficient use of human talent, with AI handling routine or repetitive work and freeing employees to focus on higher‑value activities.
Adoption accelerates, governance lags
AI uptake has surged, with nearly two‑thirds of respondents reporting that their organizations have moved beyond the functional stage of adoption. In the UAE and GCC, 44 % of firms now use AI for specific applications, but only 8 % have fully embedded it across all operations. Governance, however, has not kept pace. More than half (57 %) of companies lack a formal AI governance framework, and the figure climbs to 81 % among GCC regional firms. Only 10 % of GCC respondents say they have a fully established governance structure, despite 97 % reporting some level of AI use.
Leadership optimism versus frontline reality
The survey highlights a clear divide between executives and those closer to day‑to‑day implementation. While 31 % of executives believe AI has exceeded expectations, only 4 % of heads of function share that view. Conversely, 41 % of managers and 50 % of individual contributors feel AI has fallen short of expectations, compared with just 19 % of executives. Despite this split, productivity remains the most frequently cited benefit across all seniority levels, with 53 % of executives, 68 % of heads of function and 63 % of managers reporting gains. Revenue growth linked to AI, however, was identified by only 4 % of respondents.
Entry‑level tasks most at risk
The report flags the erosion of entry‑level work—research, first drafts, administrative coordination and routine data analysis—as a central concern. These tasks traditionally serve as training grounds for junior employees to develop judgement and critical‑thinking skills. Automation is most likely to affect first‑draft content, reporting, basic research, administrative coordination and routine problem‑solving. New AI‑driven roles such as chief AI officer, AI governance lead and AI strategist typically require prior experience or technical expertise, leaving few entry‑level pathways into these positions.
Investment trends and barriers
AI investment has climbed in the mid‑range, with 27 % of respondents now allocating annual budgets between $500,000 and $5 million, up from 19 % last year. Spending above $5 million remained stable at 7 %. UAE firms are more likely to report high AI spending, with 11 % investing over $5 million annually, compared with 3 % in Saudi Arabia. At the lower end, 44 % of Saudi respondents budget below $500,000, versus 36 % in the UAE. Data privacy and regulatory risk emerged as the leading barrier to AI advancement, cited by 44 % of GCC respondents and 45 % of multinationals.
Overall sentiment remains positive, with 90 % of respondents describing their organization as either excited about AI or cautiously optimistic. Cautious optimism (46 %) now outweighs outright enthusiasm. Human oversight remains central, with around 65 % of respondents stating that AI outputs are always reviewed before use. Half of multinational respondents report using AI in decision‑making processes.
What comes next?
As AI continues to embed itself in business operations, the challenge will be to align governance, talent development and ethical frameworks. Organizations must bridge the gap between executive optimism and frontline experience, ensuring that AI delivers on its productivity promises while safeguarding employee roles and data integrity.
Why it matters
Understanding how AI reshapes job roles in the UAE and GCC helps companies plan talent strategies, invest wisely, and build governance that protects both employees and data.
Key points
- AI fears in the UAE and GCC have fallen sharply, with only 14 % expecting job cuts in the next 12‑24 months.
- Companies are consolidating roles rather than eliminating positions, with 22 % already doing so and 41 % exploring it.
- AI adoption has accelerated, yet 57 % of firms lack formal governance, especially in GCC where 81 % have none.
- Executives are more optimistic about AI’s impact than managers or staff, though productivity gains are widely reported.
- Entry‑level tasks are most vulnerable to automation, raising concerns about skill development for junior employees.
- Data privacy and regulatory risk are the top barriers to AI advancement, while cautious optimism dominates overall sentiment.
Frequently asked questions
What is the main finding of the Cooper Fitch report on AI in the UAE and GCC?
The report shows that fears of AI‑driven job cuts have dropped to 14 % of respondents, while AI is instead reshaping roles through task consolidation.
How is AI governance in GCC companies?
A majority of GCC firms—81 %—have no formal AI governance framework, and only 10 % report a fully established system.
Which tasks are most affected by AI automation?
Entry‑level tasks such as first‑draft content, basic research, administrative coordination and routine data analysis are most at risk.
