Generative AI (GenAI) is a technological breakthrough, creating content, writing code, and analyzing data with increasing efficacy. It’s already transforming businesses in KSA, giving Strategy& an opportunity to assess GenAI’s effects in-depth. We examine GenAI’s impact on operating profits in different KSA sectors and cover a broad spectrum of applications, from product development acceleration to customer experience hyper-personalization. We also take a deep dive into the industries with the highest potential margin upside: telecom, media and entertainment, and technology (TMT).
It’s clear that GenAI will significantly reshape every sector in KSA, with early adopters securing a decisive competitive edge. Our insights show how Strategy& can make it work for you.
Enhance and accelerate solution development by generating design features, creating and optimizing code, detecting and resolving bugs, and producing test cases/data.
Optimize tech infrastructure planning, deployment, and operations via generation of deployment scenarios, definition of configuration recommendations, and detection and diagnosis of faults.
Generate personalized content in different formats (e.g., text, pictures, audio, video) across different channels (e.g., forums, social media, website) to maximize customer engagement and lead generation.
Score and prioritize leads based on historical data, automatically qualify leads based on customer engagement data (e.g., website visits), nurture leads through automated follow-ups, and generate customized proposals to address opportunities.
Analyze customer data to learn preferences, predict behavior, and generate hyper-personalized recommendations to maximize customer value (e.g., real-time cross-sell/up-sell product recommendations based on customer behavior).
The KSA tech sector is booming thanks to national digitization efforts, smart city projects, adoption of digital lifestyles, and the increasingly sophisticated tech demands of businesses. KSA is leveraging this growth to transform its service-oriented tech sector into an innovation hub. It is investing heavily to develop local intellectual property (IP) and national tech champions in areas beyond services, such as software and infrastructure. GenAI can accelerate this transformation by creating growth opportunities for KSA tech companies and enhancing their capabilities.
KSA tech firms can tap into the SAR ~3 billion1Expected value in 2028 based on Statista, “Generative AI - Saudi Arabia,” August 2023. GenAI market by developing and commercializing GenAI use cases and augmenting existing tech solutions with AI features. They can also cater to the demand for advanced hardware and infrastructure needed for GenAI, including high-performance GPUs, supercomputers, AI-optimized cloud computing, fast/scalable storage solutions, energy-efficient data centers, and robust data security. Internally, GenAI can bolster R&D capabilities for tech companies and expedite solution design and development. For instance, Vodafone’s tech unit boosted the productivity of developers by 30% – 45% during pilot tests for GenAI assistants.2ET Telecom, “Vodafone tests genAI, leveraging Microsoft tech for code writing: Report,” September 2023. GenAI also enables tech companies to enhance their marketing efforts by accelerating content creation and hyper-personalizing communications to customers based on their profiles. Additionally, GenAI can automate the internal lead-to-cash life cycle, reducing costs by ~30%.3Analysis conducted by Strategy&. For example, Strategy& is deploying a GenAI-powered proposal builder for a KSA-based tech company, with the aim of evolving it into an end-to-end commercial suite covering lead management, procurement, and project delivery.
Generate creative content including journal article drafts, music compositions, advertising videos, film storylines and scripts, and gaming characters and experiences.
Suggest hyper-personalized content to customers based on their profiles and preferences, and enable sophisticated search features (i.e., taking customer preferences and current mood into account).
Enable highly targeted, customized, dynamic, and interactive advertising campaigns based on the preferences and behaviors of customers.
Automate content production and planning processes, including breaking down scripts/scenes, creating production schedules, determining the actors needed by scene, creating AI-based pre-visualizations, etc.
Automate post-production editing processes such as soundtrack quality enhancement, video trimming, and dubbing (e.g., editors update audio/video transcripts and AI translates them into audio/video changes).
The KSA media and entertainment market is expanding, driven by a digitally savvy population, high media consumption rates, and advanced digital infrastructure. KSA consumers spent an average of ~7.31DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours per day on the internet, ~3.81DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours watching TV, and ~31DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours on social media in 2023, surpassing many of their regional and global counterparts. National efforts recently put in place aim to transform KSA into a media and entertainment hub with highly localized content, unique experiences, diverse entertainment options, and a strong talent pool. GenAI can facilitate this transformation by enabling companies to accelerate local content creation, design personalized experiences, and enhance capabilities.
Media and entertainment firms can use GenAI to creatively and efficiently develop original Arabic content, including film storylines, scripts, musical compositions, and gaming experiences and characters. Given Saudi audiences’ preference for localized content on TV and other platforms,2Strategy& and MBC Media Solutions, “Saudi Arabia’s Dynamic Television and Video Market: A High-Growth Opportunity,” June 2022. there's a significant opportunity for companies. Post-production, GenAI-powered tools can aid in editing tasks such as sound enhancement, video trimming, and dubbing. For example, Fremantle partnered with AI startup Papercup to dub and localize content such as “Idols” and “Got Talent.”3Fremantle, “Fremantle partners with AI dubbing start-up Papercup,” January 2023. To boost customer engagement on digital platforms, companies can employ GenAI to improve search features and hyper-personalize content recommendations based on user profiles… or even moods. Moreover, by leveraging GenAI for targeted and customized advertising, companies can enhance the monetization of their customer base. In fact, the low advertising spending per capita of SAR ~2404Value in 2023 based on Statista, “Advertising - Saudi Arabia,” April 2024. in KSA presents a valuable opportunity for media and entertainment companies.
Analyze customer data to learn preferences, predict behavior, and generate hyper-personalized recommendations (e.g., real-time cross-sell/up-sell product recommendations based on customer behavior).
Optimize network planning, deployment, and operations via generation of deployment scenarios, definition of configuration recommendations, detection and diagnosis of faults, and training of security threat detectors.
Generate tailored product portfolios to address the needs of customer segments by developing highly sophisticated customer segmentations and synthesizing customer insights.
Optimize customer service operations using AI chatbots capable of complex customer conversations (i.e., understanding natural language inquiries and generating contextualized responses).
Generate personalized content in different formats (e.g., text, pictures, audio, video) across different channels (e.g., forums, social media, website) to maximize customer engagement and lead generation.
The KSA telco market continues to expand, driven by a young, tech-savvy population, high mobile and internet penetration, and growing demand for digital services. However, the market is becoming increasingly challenging due to intense competition, price wars, and monetization hurdles. To navigate these dynamics, telcos are constantly seeking new strategies to differentiate their commercial propositions and internal operations from those of competitors. GenAI can support these efforts and help telcos establish competitive advantages across their business construct.
Telcos can utilize GenAI to develop highly sophisticated customer segmentations, synthesize customer insights from a range of data sources, and generate customized product portfolios to address segment needs. For example, they can gain deeper insights into broadband customers, tailor the broadband value proposition, and enhance broadband infrastructure utilization, currently at ~50%1Estimated fiber-to-the-home (FTTH) utilization in 2023, households connected/households covered. This number is based on analysis conducted by Strategy& leveraging data from Omdia, “Fiber Development Index: 2023,” August 2023. for fiber-to-the-home (FTTH). Additionally, by integrating GenAI into customer value management engines, telcos can better analyze customer behavior and hyper-personalize cross-selling, up-selling, and churn mitigation campaigns. This includes accelerating ICT cross-selling to SMEs and better capturing an opportunity expected to reach SAR ~10 billion by 2028.2Value based on analysis conducted by Strategy& leveraging data from IDC, “Worldwide ICT Spending Guide: Enterprise and SMB by Industry,” July 2022. For customer engagement, telcos can deploy sophisticated chatbots to enhance the productivity of their contact centers. For instance, Vodafone partnered with Google and Genesys to develop a chatbot capable of resolving ~70% of digital customer queries.3Vodafone, “Vodafone takes customer service to the next level with Google Cloud and Genesys-powered AI virtual assistant ‘TOBi’ and Speech IVR,” January 2023. On network management, telcos can use GenAI to optimize planning, deployment, and operations by simulating deployment scenarios, generating configuration recommendations, and detecting and diagnosing faults.
Provide personalized travel/ entertainment plans based on customer preferences, budget, time constraints and travel history including flights, accommodations, experiences and dining options.
Produce personalized marketing content (e.g., text, pictures, audio, video) based on customer profiles to maximize customer engagement and lead generation.
Dynamically generate and update pricing by simulating market scenarios including demand, competitor pricing, and customer behavior.
Optimize customer service operations using AI chatbots capable of complex customer conversations (i.e., understanding natural language inquiries and generating contextualized responses).
Create virtual, interactive, and immersive experiences for customers to explore travel destinations, and leisure and cultural activities.
Diagnose patient diseases and support the development of personalized treatment plans based on medical images, lab tests, and patient information.
Analyze vast data sets to determine the most effective drug formulations for diseases, accelerating drug discovery (e.g., KSA startup NanoPalm used GenAI to accelerate development of nano-robots to address sickle cell disease1MCIT, “H.E. Engineer Abdullah Alswaha presentation on AI at World Economic Forum 2024 annual meeting,” X video posted on January 16, 2024.).
Enable healthcare providers to extract and synthesize patient data, and to generate health reports based on test results and consultation transcripts/ audio notes.
Build chatbots or virtual assistants that interact with patients, answer administrative queries, assist in appointment scheduling, and provide medical direction.
Generate end-to-end operational plans for healthcare facilities covering patient scheduling, bed management, staffing, and inventory management.
Automate and accelerate primary and secondary research including minute-taking, data aggregation from multiple sources, and data synthesis.
Process large volumes of text and numerical data, summarize key insights, and generate initial recommendations.
Generate reports, dashboards, and presentations (e.g., to summarize analyses) based on specific guidelines for structure, content, and format.
Create business development documents, including proposals, pitch decks, and thought leadership pieces, leveraging standard templates and libraries of existing materials.
Generate and optimize project timelines, resources, and budgets based on scope and data from previously delivered projects.
Enhance the digital shopping journey of customers by learning their behaviors and preferences, and suggesting tailored products in real time.
Produce personalized marketing content (e.g., text, pictures, audio, video) based on customer profiles to drive customer interest and engagement.
Dynamically generate and update pricing by simulating and assessing market scenarios including demand, competitor pricing, and customer behavior.
Develop granular demand forecasts, generate potential scenarios (e.g., supply chain disruptions, changes in customer behavior), and optimize supply chain operations accordingly.
Improve the efficiency of store operations by generating store space/display plans, inventory recommendations, and daily task schedules for staff.
Generate custom financial products based on customer profiles and preferences (e.g., insurance policies based on customer risk profiles, investment portfolios based on customer risk appetite).
Generate highly personalized content in different formats (e.g., text, pictures, audio, video) across different channels (e.g., forums, social media, website) to maximize customer engagement and lead generation.
Build chatbots or virtual assistants that interact with customers, answer queries, and provide financial advice (e.g., investment robo-advisors, insurance robo-brokers).
Analyze customer behaviors (e.g., cross-channel transactions and communications), detect unusual patterns, predict fraudulent activities, and generate alerts.
Automate the processing of customer documents (e.g., account setup files, insurance claims) as well as generation of reports on investments and compliance/regulatory requirements.
Analyze geological data, create 3D visualizations of sub-surfaces, identify areas likely to contain resources, and determine optimal extraction methods.
Predict equipment failures and generate proactive maintenance schedules by analyzing historical maintenance data and real-time sensor information.
Generate granular demand forecasts and create optimized energy production and distribution plans by analyzing usage data, weather conditions, and socioeconomic factors.
Identify risks associated with resource extraction and processing activities through computer vision and machine learning algorithms, and generate risk mitigation measures.
Optimize energy and utility infrastructure planning, deployment, and operations via generation of deployment scenarios, definition of configuration recommendations, and detection and diagnosis of faults.
Recommend material sourcing strategies based on supplier performance data, material quality, pricing, and risk profiles.
Dynamically generate and update pricing by simulating market scenarios including demand, competitor pricing, and customer behavior.
Analyze demand/supply trends and generate production plans including volumes, configurations, and resource allocations.
Predict equipment failure and generate proactive maintenance schedules by analyzing historical maintenance data and real-time sensor information.
Generate plans, cost estimates, risk assessments, and status reports for logistics operations.
Predict equipment failures and generate proactive maintenance schedules by analyzing historical maintenance data and real-time sensor information.
Dynamically generate and update pricing by simulating market scenarios including demand, competitor pricing, and customer behavior.
Recommend optimal delivery routes and minimize delivery time and fuel consumption by analyzing traffic and weather conditions in real time.
Predict demand for services and optimize inventory levels by analyzing historical sales, weather patterns, and socio-economic indicators.
Optimize customer service operations using AI chatbots capable of complex customer conversations (e.g., regarding shipment schedules).
The KSA telco market continues to expand, driven by a young, tech-savvy population, high mobile and internet penetration, and growing demand for digital services. However, the market is becoming increasingly challenging due to intense competition, price wars, and monetization hurdles. To navigate these dynamics, telcos are constantly seeking new strategies to differentiate their commercial propositions and internal operations from those of competitors. GenAI can support these efforts and help telcos establish competitive advantages across their business construct.
Telcos can utilize GenAI to develop highly sophisticated customer segmentations, synthesize customer insights from a range of data sources, and generate customized product portfolios to address segment needs. For example, they can gain deeper insights into broadband customers, tailor the broadband value proposition, and enhance broadband infrastructure utilization, currently at ~50%1Estimated fiber-to-the-home (FTTH) utilization in 2023, households connected/households covered. This number is based on analysis conducted by Strategy& leveraging data from Omdia, “Fiber Development Index: 2023,” August 2023. for fiber-to-the-home (FTTH). Additionally, by integrating GenAI into customer value management engines, telcos can better analyze customer behavior and hyper-personalize cross-selling, up-selling, and churn mitigation campaigns. This includes accelerating ICT cross-selling to SMEs and better capturing an opportunity expected to reach SAR ~10 billion by 2028.2Value based on analysis conducted by Strategy& leveraging data from IDC, “Worldwide ICT Spending Guide: Enterprise and SMB by Industry,” July 2022. For customer engagement, telcos can deploy sophisticated chatbots to enhance the productivity of their contact centers. For instance, Vodafone partnered with Google and Genesys to develop a chatbot capable of resolving ~70% of digital customer queries.3Vodafone, “Vodafone takes customer service to the next level with Google Cloud and Genesys-powered AI virtual assistant ‘TOBi’ and Speech IVR,” January 2023. On network management, telcos can use GenAI to optimize planning, deployment, and operations by simulating deployment scenarios, generating configuration recommendations, and detecting and diagnosing faults.
The KSA media and entertainment market is expanding, driven by a digitally savvy population, high media consumption rates, and advanced digital infrastructure. KSA consumers spent an average of ~7.31DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours per day on the internet, ~3.81DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours watching TV, and ~31DataReportal, “Digital 2023: Saudi Arabia,” February 2023. hours on social media in 2023, surpassing many of their regional and global counterparts. National efforts recently put in place aim to transform KSA into a media and entertainment hub with highly localized content, unique experiences, diverse entertainment options, and a strong talent pool. GenAI can facilitate this transformation by enabling companies to accelerate local content creation, design personalized experiences, and enhance capabilities.
Media and entertainment firms can use GenAI to creatively and efficiently develop original Arabic content, including film storylines, scripts, musical compositions, and gaming experiences and characters. Given Saudi audiences’ preference for localized content on TV and other platforms,2Strategy& and MBC Media Solutions, “Saudi Arabia’s Dynamic Television and Video Market: A High-Growth Opportunity,” June 2022. there's a significant opportunity for companies. Post-production, GenAI-powered tools can aid in editing tasks such as sound enhancement, video trimming, and dubbing. For example, Fremantle partnered with AI startup Papercup to dub and localize content such as “Idols” and “Got Talent.”3Fremantle, “Fremantle partners with AI dubbing start-up Papercup,” January 2023. To boost customer engagement on digital platforms, companies can employ GenAI to improve search features and hyper-personalize content recommendations based on user profiles… or even moods. Moreover, by leveraging GenAI for targeted and customized advertising, companies can enhance the monetization of their customer base. In fact, the low advertising spending per capita of SAR ~2404Value in 2023 based on Statista, “Advertising - Saudi Arabia,” April 2024. in KSA presents a valuable opportunity for media and entertainment companies.
The KSA tech sector is booming thanks to national digitization efforts, smart city projects, the adoption of digital lifestyles, and the increasingly sophisticated tech demands of businesses. KSA is leveraging this growth to transform its service-oriented tech sector into an innovation hub. It is investing heavily to develop local intellectual property (IP) and national tech champions in areas beyond services, such as software and infrastructure. GenAI can accelerate this transformation by creating growth opportunities for KSA tech companies and enhancing their capabilities.
KSA tech firms can tap into the SAR ~3 billion1Expected value in 2028 based on Statista, “Generative AI - Saudi Arabia,” August 2023. GenAI market by developing and commercializing GenAI use cases and augmenting existing tech solutions with AI features. They can also cater to the demand for advanced hardware and infrastructure needed for GenAI, including high-performance GPUs, supercomputers, AI-optimized cloud computing, fast/scalable storage solutions, energy-efficient data centers, and robust data security. Internally, GenAI can bolster R&D capabilities for tech companies and expedite solution design and development. For instance, Vodafone’s tech unit boosted the productivity of developers by 30% – 45% during pilot tests for GenAI assistants.2ET Telecom, “Vodafone tests genAI, leveraging Microsoft tech for code writing: Report,” September 2023. GenAI also enables tech companies to enhance their marketing efforts by accelerating content creation and hyper-personalizing communications to customers based on their profiles. Additionally, GenAI can automate the internal lead-to-cash life cycle, reducing costs by ~30%.3Analysis conducted by Strategy&. For example, Strategy& is deploying a GenAI-powered proposal builder for a KSA-based tech company, with the aim of evolving it into an end-to-end commercial suite covering lead management, procurement, and project delivery.
Accelerate research and development efforts (e.g., code generation and testing in software development), improve customer segmentation and synthesis of customer insights, generate media content, and recommend product features (e.g., pricing)
Use case examples:
Tech solution development
Drug research and development
Analyze customer data, predict customer behavior, generate highly targeted product recommendations in real time (e.g., cross-selling products based on customer behavior on digital platforms), and create personalized content for marketing campaigns
Use case examples:
Up-selling/cross-selling engine
Marketing content generation
Augment sales and customer service functions with conversational assistants to better capture and qualify leads (e.g., by engaging with website visitors), understand customer inquiries, and provide contextualized responses
Use case examples:
Lead management
Customer service chatbots
Automate operational work across commercial and support functions such as:
Use case examples:
Telecom network management
Inventory management
Our GenAI transformation approach is value-driven, ensuring alignment with business needs and delivering tangible benefits beyond technological innovation.
Synchronize with business goals: Ensure that GenAI initiatives align with the company’s strategic goals, focusing on use cases that advance these objectives
Assess value creation: Perform thorough cost-benefit analyses to justify GenAI investments, taking into account potential productivity improvements, revenue growth, and cost savings
Ready the organization: Establish GenAI knowledge and change management programs to drive operational readiness, ensure data availability and quality for GenAI modeling, and accelerate GenAI adoption
Roll out gradually: Begin with targeted pilot GenAI projects to achieve an early value demonstration and build confidence in the technology
Create operational guardrails: Instill practices and governance mechanisms to ensure responsible use of GenAI, and to manage risks involving data privacy, bias, and misinformation
Measure, learn, and adapt: Establish performance metrics to measure the impact of GenAI on business outcomes, and create feedback mechanisms to continuously improve GenAI solutions
GenAI isn’t just changing how we do business; it’s reshaping entire industries. This impact goes beyond simply adapting – it’s pushing companies in KSA to rethink who they are and grab hold of new chances for growth and innovation. By using GenAI, KSA companies aren’t just exploring new territory – they’re blazing a trail for KSA business worldwide.
Let Strategy& be your guide.
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