Saudi CEOs Face Historic Opportunity and Challenge in AI-Driven Digital Transformation
Artificial intelligence (AI) is driving a global race to shape the future of organizations. Saudi Arabia is a front-runner in this race, and success in AI has become entwined with the Kingdom’s national goals.
For CEOs of Saudi organisations the stakes have never been higher. Successfully reshape your enterprise to be an early adopter or fast follower and you create security and prosperity for your people – because in the future there is no business without technology.
The Saudi leaders understand that AI is the new oil. This impelled them to create Humain, which is backed by PIF and has a huge responsibility to consolidate and implement the Kingdom’s AI push, including construction of data centres and commercialisation of applications.
And Saudi is building a base for the next generation by rolling out a new AI curriculum across all levels of public education beginning with the 2025–26 school year.
What can a CEO do to stay at the forefront of this transition?
Imperative 1: immerse yourself
We at Russell Reynolds Associates, the preeminent technology leadership advisory partner, believe the first lesson for a Saudi CEO is the same imperative that many people are facing throughout the working world: you must understand the technology. Daunting it may be but this journey is becoming inevitable.
As a CEO in the AI era you need to understand the role of new technology in business modelling, partnerships, cost structure, and how it affects your choices when developing a product or service for market.
And if it’s hard for you as the CEO to fully understand AI, then be ready to listen to someone who does: your CTO.
Imperative 2: change workplace culture
Creating a culture that champions change can be a particular challenge at Gulf companies. While capital and vision are in strong supply, workplace culture can be an obstacle. The old bureaucracies and hierarchies must adapt to enable diverse, agile and self-empowered teams.
Specifically – and this is my most important piece of advice – the culture must change to allow failure. This is an area where Silicon Valley’s culture is strong: Test and trial. Fail fast, learn faster.
But Gulf organisations sometimes see failure as weakness, something to hide, something you don’t speak about openly. In the fast-moving tech world, this attitude is itself a failure – and one we don’t seem to learn from.
Imperative 3: consider greenfields
If the workplace culture is immovable, then move outside the culture. Consider setting up a greenfield project outside the legacy organisation. Treat it as a lab. Establish proof of concept.
This approach has proven to be successful for many enterprises. The complicated part is then reintegrating the greenfield with the legacy entity. But at least you can build initial momentum this way. As the saying goes, “If you want to move fast, move alone”.
Imperative 4: attract world-class tech leaders
The time is right to attract top tech talent to Saudi Arabia. The country’s ambitious approach makes KSA more attractive. The Global AI Index published in 2024 by the UK website Tortoise ranked Saudi Arabia 14th overall, and first in terms of government AI strategy.
You will need people with AI experience to lead the AI transformation. Realistically, in the short term, these leaders might have to come from beyond KSA. Their responsibilities will then include developing the next generation of local leaders.
We at RRA are seeing a new openness among global executives toward posts in the Gulf. Global narratives about the Gulf countries – ambitious, thriving, agile, willing to spend – increase the attraction and are feeding the influx of talent.
In conclusion, we at RRA believe that KSA senior executives who follow this four-step strategic framework will increase their outlook for organisational success.
The matter is urgent and will remain urgent. According to RRA’s CEO turnover index, CEO tenure as of H1 2025 was at its shortest since RRA began tracking in 2018. The average tenure of 6.8 years was sharply down from 7.7 years in H1 2024. The AI-driven need for continuous business transformation is making the role increasingly challenging to sustain.
Saudi Arabia’s organisational leaders have a great opportunity to be at the forefront of transformation. The country has positioned itself as an early leader in the AI race – now it is up to CEOs to ensure their organisations keep pace.
