Speech

It is a pleasure for me to join His Excellency, Minister Al Hussaini in welcoming you to this important dialogue here in the United Arab Emirates—a fast-growing global AI hub. A recent Microsoft study reports that 64 percent of the UAE’s working age population uses AI, which is the highest rate globally.

This illustrates the dynamism we see in the region—and the major investments and partnerships that some of the world’s biggest tech companies are making here.

Why such a huge commitment to this region? Because the UAE and the members of the GCC all understand just how transformative AI can be. They have made systemically significant investments in human capital over the last decades. IMF estimates show that, with the right measures in place, AI could fuel a boost to global productivity of up to 0.8 percentage points per year. This could raise global growth to levels exceeding those of the pre-pandemic period.

Here in the Gulf region, AI could boost non-oil GDP in Gulf countries even more, by up to 2.8 percent. For economies that have long been dependent on hydrocarbon exports, this presents an enormous opportunity to diversify and build new sources of growth.

Now, major technology changes often bring disruption. And sure enough, we can expect disruption from AI. Especially to labor markets. On average, 40 percent of jobs globally will be impacted by AI - either upgraded, or eliminated or transformed. For advanced economies, 60 percent of jobs will be affected. This is like a tsunami hitting the labor market. We are already seeing the evidence: about one in 10 job postings in advanced economies now require at least one new skill. Workers with in-demand skills will likely see productivity and wage gains. This will create more demand for services, and increase employment and wages among low-skilled workers. But middle-skilled jobs will be squeezed.

That means that young people and the middle class will be hit hardest.

We can expect to see a similar divergence between countries. Those with an economic structure conducive to AI adoption—that is, strong digital infrastructure, more skilled labor forces, and robust regulatory frameworks—are likely to experience the largest and fastest benefits. Countries that don’t may get left behind. This is why we gathered here today. AI looks unstoppable. But whether or not countries can successfully capitalize on AI’s enormous promise is yet to be determined. And this will largely depend on the policy regimes they put in place. So then, what must be done to ensure AI translates into broad-based prosperity for this region?

First, macro policies. Investment and innovation in AI will boost growth. Fiscal policies can support this by strengthening tax systems and by funding research, reskilling, or sector-based training programs. However, tax systems should not encourage automation at the expense of people. Likewise, effective financial regulation will be essential to ensure financial market efficiency and improved risk management.

Second, guardrails. AI needs to be regulated to ensure it’s safe, fair, and trustworthy—but without stifling innovation. Different countries are taking different approaches, ranging from risk-based frameworks to high-level principles. Whatever approach they take, it’s critical that countries coordinate.

That brings me to my third point: cooperation and partnerships. Scale is a big advantage in AI. But you can’t get scale without cooperation among governments, AI researchers and developers, including when it comes to data sharing and knowledge transfer.

Let me conclude. AI will transform our economies. It will present immense opportunities and pose significant risks. And it falls to you, the world’s policymakers, to ensure that the opportunities are maximized for your countries and the risks controlled.

Thank you.