Fears of AI-driven job cuts across the UAE and GCC have eased sharply over the past year, even as artificial intelligence (AI) continues to reshape how roles are structured, according to a new report by Cooper Fitch.
The AI & the Future of Talent 2027 report found that only 14 per cent of respondents now expect AI-related role reductions within the next 12 to 24 months, down from 31 per cent in last year’s survey.
Instead, organisations are consolidating tasks and responsibilities rather than eliminating positions outright, with 22 per cent reporting some role consolidation already under way and a further 41 per cent exploring it.
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Adoption deepens, but governance lags
Nearly two-thirds of respondents report AI adoption at the functional stage or beyond, up from about 19 per cent functional adoption in last year’s survey. Across the UAE and GCC, 44 per cent of organisations now report specific-use adoption, while only 8 per cent have fully embedded AI across operations.
Governance has not kept pace with adoption.
The report found that 57 per cent of organisations have no formal AI governance framework, or only an informal, evolving one. Among GCC regional companies specifically, that figure rises to 81 per cent.
Just 10 per cent of GCC respondents report fully established AI governance, despite 97 per cent reporting some level of AI adoption.
Executives more upbeat than managers
The Cooper Fitch survey revealed a marked gap in sentiment between leadership and staff closer to day-to-day implementation. While 31 per cent of executives said AI has exceeded expectations, only 4 per cent of heads of function said the same. Conversely, 41 per cent of managers and 50 per cent of individual contributors said AI has fallen below expectations, compared with just 19 per cent of executives.
Despite the divide, productivity remains the most commonly cited measurable benefit of AI across all seniority levels — reported by 53 per cent of executives, 68 per cent of heads of function and 63 per cent of managers. Revenue growth linked to AI, by contrast, was identified by only 4 per cent of respondents across these groups.
Entry-level work most exposed
The report’s central concern is the erosion of entry-level tasks – research, first drafts, administrative coordination and routine data analysis – that have traditionally served as the training ground for junior employees to build judgement and critical-thinking skills.
Respondents identified first-draft content, reporting, basic research, administrative coordination and routine problem-solving as the tasks most affected by automation.
At the same time, new roles emerging from AI adoption – such as chief AI officer, AI governance leads and AI strategists – largely require prior experience or technical expertise, with few identifiable entry-level pathways into them.
“If future leaders have fewer opportunities to develop judgement through independent problem-solving, will the CEOs of tomorrow be distinguished by their strategic vision, or by their skill in directing AI to generate strategy?” the report asks.
Investment climbs, barriers persist
The report noted that AI investment in the mid-range has grown notably, with 27 per cent of respondents now reporting annual AI budgets of between $500,000 and $5 million, up from 19 per cent in the previous survey. Investment above $5 million remained broadly stable at 7 per cent.
UAE respondents were more likely to report high AI spending, with 11 per cent citing annual investment above $5 million compared with 3 per cent in Saudi Arabia. At the lower end, 44 per cent of Saudi respondents reported budgets below $500,000, against 36 per cent in the UAE.
Data privacy and regulatory risk emerged as the leading barrier to AI advancement across organisation types, cited by 44 per cent of GCC regional respondents and 45 per cent of multinationals.
Sentiment towards AI remains broadly positive, with 90 per cent of respondents describing their organisation as either excited about AI or cautiously optimistic – though cautious optimism, at 46 per cent, has overtaken outright enthusiasm as the dominant mood.
Around 65 per cent of respondents said AI outputs are always reviewed before use, underscoring that human oversight remains central to decision-making even as AI’s role expands. Half of multinational respondents said they use AI in decision-making processes, it added.
Source: Khaleej Times