How Artificial Intelligence Is Reshaping Saudi Arabia's Labor Market
Artificial intelligence (AI) and emerging technologies are increasingly becoming the cornerstone of Saudi Arabia's future labor market as the Kingdom undergoes rapid digital transformation. While automation is boosting efficiency and productivity, it also underscores the urgent need to reskill the current workforce and prepare younger generations with future-ready skills. The widening gap between traditional education and evolving market demands calls for decisive action.
This shift does not signal the disappearance of jobs, but rather their redefinition. Routine tasks are giving way to roles requiring analytical thinking, digital fluency, and creativity. The very nature of employment is transforming from simply executing tasks to managing complex solutions.
AI is accelerating this evolution across key sectors including healthcare, manufacturing, and finance, where local case studies show how the technology is cutting costs and improving operational performance.
Yet, despite the opportunities AI presents for growth and job creation, significant challenges remain. Chief among them are high adoption costs, underdeveloped infrastructure, and a shortage of qualified professionals.
Addressing these issues will require coordinated efforts from the government, private sector, and educational institutions to ensure a balanced digital transformation, one that empowers human potential rather than marginalizing it.
Ali Al-Eid, a human resources expert, told Asharq Al-Awsat that digital transformation, future readiness, and awareness of key job skills are now central pillars of Saudi Arabia's national development strategy.
While some fear AI may lead to mass job losses, Al-Eid said it will instead reshape existing roles. He expects routine jobs to fade, replaced by positions that demand analytical, digital, and advanced interpersonal skills.
Employment will increasingly prioritize flexibility and innovation over years of experience, he added.
AI is boosting automation, enabling big data analysis, and improving the speed and accuracy of decision-making, he noted. These changes are reducing waste and enhancing efficiency in sectors like healthcare, logistics, finance, and human resources, where faster decisions and improved outcomes are already evident.
He stressed the need for comprehensive strategies that foster innovation, encourage the adoption of new technologies, and ensure a fair transition for workers. This includes investing in reskilling programs and providing social safety nets.
According to Al-Eid, the success of future employment initiatives hinges on the private sector's commitment to keeping pace with technological change.
Economic policy expert Ahmed Al-Shehri echoed these views, noting that AI is rapidly redrawing the contours of Saudi Arabia's labor market, fueled by Vision 2030's push to diversify the economy and drive innovation.
He said AI is automating routine tasks and improving work quality across public and private sectors. Based on global trends, he estimated that between 25 and 30 percent of existing jobs in the Kingdom could be affected by AI by 2030. At the same time, the technology will create new opportunities in high-tech fields and increase productivity by streamlining operations.
The oil sector is already seeing tangible benefits. Saudi Aramco, for example, uses AI for predictive maintenance, reducing costs and boosting operational efficiency by up to 20 percent. Al-Shehri added that many educational institutions and stakeholders are prioritizing future skill development to close the gap between conventional education and the needs of a high-tech economy.
He said current policies are capable of striking a balance between accelerating technological adoption and preserving existing jobs, thanks to incentives and public-private partnerships, such as those driving mega-projects like NEOM.
Tarek Mansour, senior partner at McKinsey, highlighted the findings of recent research by the Future Investment Initiative in collaboration with his firm. According to the study, automation and skill development are key drivers of productivity in the region.
It estimated that productivity could grow by 2.7 percent annually by 2030, driven by modern technologies like generative AI, which boosts human creativity in critical sectors such as healthcare and scientific research.
Mansour noted that the benefits of digital transformation extend beyond productivity gains. New jobs will be created, and talent shortages in specialized fields, particularly in science, technology, engineering, and mathematics, could be eased.
Gulf countries already possess a strong talent pool and can launch large-scale skill-building programs, especially in strategic and technical sectors, to meet evolving labor market demands and improve youth employment prospects, he remarked.
Saudi Arabia, he added, has made impressive strides in embracing technology, with a clear focus on AI readiness and the development of digital infrastructure to keep pace with rapid technological change. A 2024 survey conducted for the study found that 56 percent of companies in the Middle East and North Africa are using AI, compared to 85 percent in the European Union and the United States.
However, Mansour pointed out that key barriers to adopting advanced technologies include implementation costs, infrastructure limitations, and a lack of skilled workers. In the Middle East, 52 percent of business leaders cited high costs as a major obstacle, while 45 percent pointed to infrastructure challenges.
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