AI, Productivity, and Outsourcing: How UAE’s Public Sector is Embracing Change

The UAE’s public sector is leading the global shift towards AI-driven efficiency, according to a new Economist Impact study.

The research highlights how government organizations in the UAE are more proactive in adopting new technologies, outsourcing key functions, and leveraging AI to enhance productivity—but not without concerns.

AI: The Productivity Game-Changer

AI is expected to radically transform government operations in the UAE. 70% of public sector employees believe AI will significantly boost productivity in the next three years—20% higher than the global average. The most common use cases? Predictive analytics (64%), cybersecurity, and fraud prevention.

Yet, despite the enthusiasm, measuring productivity remains a challenge. Nearly half of the surveyed officials admitted their organizations lack clear metrics to track efficiency.

The UAE’s Tech Adoption is Faster—But at a Cost

The study also reveals that 84% of government organizations in the UAE actively embrace new technologies if their benefits are proven, compared to just 70% globally. However, data privacy remains a major concern, with 79% of UAE officials citing security risks as a key challenge—4% higher than the global average.

Outsourcing and the Role of Employees

One of the biggest shifts? Half of UAE government employees say outsourcing is the most effective way to boost productivity. At the same time, internal teams are often left out of key tech decisions—only 15% of employees are involved in discussions about new technologies, while 34% are only included at the implementation stage.

As the UAE continues to modernize its public sector, these findings paint a clear picture: AI and automation are driving the change, but balancing efficiency with employee involvement and data security remains a challenge.