Technology no barrier to digitisation in Middle East, study shows

Study shows companies are reaping the benefits of AI

Fewer companies in the UAE and the Saudi believe that legacy technology poses a barrier to digitalisation now compared to 2022, according to a study commissioned by Eaton. 

The data shows that companies are reaping the benefits associated with artificial intelligence (AI) and machine learning (ML) to advance their digitalisation efforts.

Eaton commissioned S&P Global Market Intelligence to survey digital transformation leaders from the data centre, utilities, buildings and manufacturing sectors in the Middle East and other global markets. 

The findings of the study, detailed in the second Eaton Brightlayer research report, show that digitalisation strategies are being developed quickly in these sectors.

Fewer than one-in-four companies (23%) surveyed said that legacy technology poses a barrier to digitalization compared with one-in-three (33%) who were asked the same question in 2022. 

Newly emerging AI and ML applications, which show huge potential to transform businesses, are credited with this 10% shift in sentiment over a period of less than 24 months.

Qasem Noureddin, Managing Director at Eaton Middle East, said: “Businesses in the UAE and KSA are accelerating their efforts towards digital transformation. This report emphasises the pivotal role of digital technologies in driving business objectives and shows how urgently businesses want to implement technologies that incorporate AI and ML. 

“It shows that demand for data centres has increased, driven by artificial intelligence and other advanced technologies. Other B2B sectors in the UAE and KSA like manufacturing, utilities, and building/facilities management continue to advance their digitalization efforts to achieve their digital transformation and sustainability goals, aligning with national objectives.”

Top findings in each sector are as follows:

Data centres are scaling up to meet growing demand and are focusing on facility upgrades (42.3%); expanding capacity (38.6%); and improving IT asset performance utilisation (32.8%).

Utilities are under pressure because while 55% point to outdated infrastructure as their biggest problem, they expect grid capacity requirements to rise significantly over the next 10 years, with 40% predicting extra capacity requirements of up to 49%.

Manufacturers believe AI could facilitate decarbonization and boost their environmental, sustainability and governance (ESG) scores (66%), as well as improve electrical energy monitoring and optimisation (55%) and enhance digital twin (68%) and predictive maintenance applications (64%).

Building operators are focusing on digital transformation to help them achieve sustainability targets (upwards of 46%), with most large building owners (54%) planning to install building management systems within the next year to help them optimize energy use, and many seeing AI as a future tool to help them predict space utilization (66%).

Eaton’s Brightlayer software makes it easier for businesses to embrace digitalization and drive operational value by leveraging intelligent, actionable insights from their data. Brightlayer combines Eaton’s deep domain knowledge with AI, ML and big data processing to support efficient real-time decision-making to optimize power management.

A free download of the Eaton’s 2024 Brightlayer research report is available here: Adoption, execution and expansion of digital transformation in the wake of AI, together with more information about the strategies that businesses can adopt to be better prepared for the digital future.