Will ChatGPT and AI have an impact on Saudi workforce productivity?

Raymond Khoury believes that ChatGPT and AI can provide tailor-made training programs for employees, access to customized online courses, and foster collaboration and communication amongst team members. (LEAP)
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Updated 05 March 2023
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Will ChatGPT and AI have an impact on Saudi workforce productivity?

  • Raymond Khoury, senior partner at Arthur D. Little, shares insights on the beneficial impact of AI technologies

CAIRO: ChatGPT and other artificial intelligence platforms have created a wave of change in the global workforce that could turn out to be a useful tool for Saudi Arabia’s personnel to boost economic development.

AI has raised concerns about replacing manpower with robots and software but as seen with ChatGPT’s massive popularity, embracing innovation can also serve as an opportunity to boost productivity.

Alleviating employees’ fear

According to a survey by Kaspersky, 48 percent of employees in the Kingdom fear losing their jobs to AI. However, in an exclusive interview with Arab News, Raymond Khoury, senior partner at Arthur D. Little, has alleviated these fear by sharing some insights on the beneficial impact of AI and ChatGPT.

“Nurturing the right talent with a strong AI culture is the human dimension that needs to be availed for successfully imbedding AI into operations,” he said.

“With the true value of AI realized through individual or collective team innovation, experimentation, learning and collaboration, organizations need to promote and maintain such an AI culture.”

Khoury went on to explain that the implementation of AI technologies and the use of robots would certainly require human labor that can positively impact Saudi Arabia’s workforce. 

“Looking at career-related skills from a talent management perspective, AI, specifically ChatGPT, can positively impact recruitment and hiring, training and development, upskilling and reskilling, talent collaboration as well as knowledge management,” he said.

Khoury believes that ChatGPT and AI can provide tailor-made training programs for employees, access to customized online courses, and foster collaboration and communication amongst team members.

“ChatGPT and AI will likely affect the Kingdom’s workforce, reshaping and even emancipating it in both the short and long term,” he added. “It will help the workforce to become more productive within the respective organization with increased efficiency as more mundane and repetitive tasks get automated, leaving workers with more time to focus on strategic activities.”

Kaspersky’s survey supports Khoury’s point as 50 percent of employees believe AI increases productivity and 51 percent believe that incorporating robots will open opportunities for employees to retain better positions.

Khoury explained that AI will impact the Kingdom’s public sector as well as healthcare, transportation, energy, utilities, finance and retail.

“For the government, AI will allow for more efficient internal operations and more seamless external constituent service delivery,” he said.

Looking at career-related skills from a talent management perspective, AI, specifically ChatGPT, can positively impact recruitment and hiring, training and development, upskilling and reskilling, talent collaboration as well as knowledge management.

Raymond Khoury, Senior partner at Arthur D. Little

He added that AI can greatly transform healthcare by personalizing treatment for chronic diseases and predetermining outcomes as well as enhance diagnosis which is already implemented in some countries.

“For transportation, AI can be used to optimize road or shipping routes to ensure timely commutes or logistics delivery. Traffic patterns can be used to enable intelligent traffic signals operations, ensuring traffic flows in the least disruptive manner,” Khoury explained.

With regard to the energy sector, innovative technologies can pinpoint various oil and gas exploration activities using certain algorithms to produce a better level of accuracy while in finance, AI can be used to detect fraud on a large scale.

“And for retail, AI can create new opportunities for growth and innovation, particularly in customer segmentation and targeted marketing campaigns. Add to this the use of sensory data and AI tools to analyze and extract marketing insights from shopping mall footfall or supporting business setup decisions at mass transit stations,” he continued.

The flip side

Khoury described the role of AI in creating a positive impact on workers by creating more productive and efficient outcomes by removing mundane and repetitive tasks from employees.

However, on the other hand, the automation of tasks might put employee stability in danger when the human factor is no longer required. 

HIGHLIGHTS

• ChatGPT and AI can provide tailor-made training programs for employees, access to customized online courses, and foster collaboration and communication amongst team members.

• Embedding AI in the operations of Saudi companies and employees will require a holistic approach that clearly defines the strategic objectives, advantages and disadvantages.

• Kaspersky’s survey supports Khoury’s point as 50 percent of employees believe AI increases productivity and 51 percent believe that incorporating robots will open opportunities for employees to retain better positions.

“On the negative side, ChatGPT will most likely replace workers who are entrusted to fulfill mundane and repetitive tedious functions which will get automated,” Khoury said.

He added: “This will push workers to acquire new skills through retraining or upskilling to become more marketable in a more and more AI-enabled digital world.”

To put things into context, Khoury said that ChatGPT recently produced a list of jobs that it will likely replace in the future.

“The above stated affects and their impact will obviously depend on the pace of technological change and the adaptability of both workers and organizations, in both the public and private sectors, to these changes as brought forward by ChatGPT and other future generative AI tools,” Khoury pointed out.

Implementation of AI

Khoury explained that embedding AI in the operations of Saudi companies and employees will require a holistic approach that clearly defines the strategic objectives, advantages and disadvantages.

“Understanding the operational bottlenecks or mundane functions within an organization and knowing how AI can address them with clear articulation of goals and implementation objectives is of paramount importance from the onset,” he said.

“With this foundational step completed, next comes the need to understand which specific AI tools or technologies can help the organization and workers achieve these strategic business objectives, and which best set of AI tools or technologies can be deployed optimally within the organization given its current and planned investments in information and communication technologies,” Khoury explained.

In addition to a strategic roadmap, fostering an optimistic environment for learning and improvement is mandatory to ensure a positive employee and client experience.

“Seemingly intricate, the embedding of AI into organizations’ operations requires solid leadership, a futuristic view, and agility in making timely changes as and when needed, and at times proactively,” Khoury concluded.


Saudi Cabinet approves cooperation agreement with WEF to secure minerals for development

Updated 59 min 18 sec ago
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Saudi Cabinet approves cooperation agreement with WEF to secure minerals for development

RIYADH: Saudi Arabia’s Cabinet has authorized the Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to secure critical materials for global development.

According to the Saudi Press Agency, the Cabinet — chaired by Crown Prince Mohammed bin Salman — gave the green light for the deal among a host of decisions.

Strengthening the mining sector is a crucial goal outlined in the Kingdom’s Vision 2030 agenda, as the nation is steadily spearheading its economic diversification journey by reducing its reliance on crude revenues. 

Speaking at the Future Minerals Forum in Riyadh in January, Alkhorayef said that Saudi Arabia seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s plans to establish mining as the third pillar of its industrial economy. 

At that time, the minister added that Saudi Arabia’s mining sector is the fastest growing globally, with the country holding an estimated mineral potential worth $2.5 trillion. 


New International Retail Council launched in Riyadh

Updated 04 February 2025
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New International Retail Council launched in Riyadh

RIYADH: An International Retail Council designed to unite top experts, decision-makers, and industry stakeholders has been launched at an industry event in Riyadh.

Announced at the Retail Leaders Circle Global Forum, event chairman Panos Linardos said the new body will tackle upcoming challenges and opportunities facing the sector across the globe.

This year’s gathering, taking place from Feb. 4 to 5, comes as the Kingdom’s retail sector continues to show strong resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97 billion) in the third quarter of 2024, despite ongoing global economic uncertainties. 

Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, according to data platform Statista, while the e-commerce sector is projected to surpass $13.2 billion by 2025.

Setting out the importance of the new council, Linardos said: “The IRC is not just another industry initiative — it is a forward-thinking response to an evolving global landscape.” 

He added: “Retail is more interconnected than ever, yet faces growing complexity in regulation, technology, and consumer behavior. The IRC will unite leaders, visionaries, and experts to facilitate global dialogue, drive innovation, and shape policies that will define the industry’s next era.” 

During his speech, the chairman highlighted that the IRC will initially focus on four key pillars shaping the future of commerce: luxury goods, retail real estate, cross-border trade, and grocery businesses.

Linardos also shed light on how geopolitical changes, economic volatility, supply chain challenges, and the rapid growth of artificial intelligence, as well as digital commerce, are transforming the retail industry at an unprecedented rate. 

“The rules of global trade are being rewritten, cross-border commerce is evolving, and consumer expectations are shifting faster than ever before. In this moment of transformation, the need for collaborative leadership, innovation, and a strategic vision for the future of retail has never been greater,” he said.

The chairman added that the discussions at the forum will reflect shared goals and help lay the groundwork for actionable solutions.

Held under the theme “Rebuilding a Shared Future,” the event commenced with the “Business Outlook: Navigating A New Global Order” session. 

It explored how geopolitical tensions, economic instability, and fast-paced technological advancements are affecting global commerce, with international business leaders sharing strategies to turn volatility into opportunity while fostering resilience and innovation.

Another session titled “A New Leadership Order: Building Growth in Turbulent Times” followed, highlighting the importance of leadership in overcoming economic challenges, boosting productivity, and promoting sustainable growth.

Industry experts shared strategies during the session for navigating complex business environments and using strategic adaptability to succeed in a constantly changing marketplace.

Discussions also centered on the transformative impact of social commerce, which is changing how consumers shop, engage with brands, and interact online.

With e-commerce in the Middle East expected to reach $57 billion by 2026, the importance of marketplaces in meeting shifting consumer expectations is crucial. 

Chief Content Officer at EMARKETER Zia Daniell Wigder presented a report created in collaboration with the RLC Global Forum which offered a data-driven roadmap for the future of e-commerce in the Gulf Cooperation Council, providing valuable insights into consumer trends, market dynamics, and opportunities for sustainable growth in the region.

AI was another key focus of the day, with several sessions exploring its transformative impact on the retail sector. 

Industry leaders discussed how the technology is being leveraged to enhance personalization, optimize supply chains, and improve operational efficiencies at scale.

According to a new report released by Knight Frank, Riyadh and Jeddah are driving a major transformation in Saudi Arabia’s lifestyle retail sector, reshaping the retail scene with 394,900 sq. meters of upcoming developments, all scheduled for completion by 2027.

The report further disclosed that the planned developments include food and beverage outlets, entertainment options, and lively public spaces.

Both major Saudi cities currently provide 670,500 sq. meters of lifestyle retail space, reflecting a 12 percent surge over the past year.

In Riyadh, the average lease rate for retail spaces is SR2,360 per sq. meter, with a 96 percent occupancy rate, while in Jeddah, lease rates average SR2,030 per sq. meter, with an occupancy rate of 70 percent.


E-commerce share in Saudi Arabia’s retail sector to hit 46% by 2030: Visa official 

Updated 04 February 2025
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E-commerce share in Saudi Arabia’s retail sector to hit 46% by 2030: Visa official 

RIYADH: Saudi Arabia’s consumer retail spending is projected to experience significant growth in the coming years, with e-commerce expected to account for 46 percent of the overall retail sector by 2030, according to a Visa executive.

Speaking to Arab News at the Retail Leaders Circle in Riyadh on Feb. 4, Ali Bailoun, regional general manager of Visa, highlighted that Saudi Arabia currently represents 44 percent of the total retail spending in the Gulf Cooperation Council region.

Bailoun’s remarks reflect Saudi Arabia’s ongoing shift toward a more diversified, digitally-driven economy, where e-commerce plays a pivotal role.

E-commerce in Saudi Arabia

Earlier this month, data from the Ministry of Commerce revealed that Saudi Arabia’s e-commerce sector continues to show strong growth. As of the fourth quarter of 2024, the Kingdom now has 40,953 registered e-commerce businesses, marking a 10 percent year-on-year increase.

“In line with Vision 2030, we see Saudi growing or doubling the payment volume by 2030. Even if you look at e-commerce, we expect e-commerce to grow to 46 percent by 2030. So, we see growth and we see potential. And you can see this on the ground,” said Bailoun. 

He added: “Today, you can go anywhere in Saudi Arabia, and you can use your card and make any payments in any retail shop.” 

Bailoun noted that e-commerce in Saudi Arabia currently accounts for 29 percent of all consumer retail payments in 2024, and is projected to rise to 46 percent by the end of this decade.

He also highlighted that cross-border transactions represent 15 percent of consumer retail payments in Saudi Arabia for 2024.

Supporting these insights, a September 2024 report from Saudi Arabia’s Small and Medium Enterprises Authority indicated that the Kingdom’s retail sector is poised to double between 2020 and 2025, with an annual compound growth rate of 15 percent.

Furthermore, a December report from Statista projected that credit card penetration in Saudi Arabia will reach 46.83 percent, continuing a trend of growth observed over the past 15 years.

Technological advancements

Bailoun suggested that data should be used wisely by retailers to enhance the growth of cross-border business. 

“My recommendation always to retailers is data. You need to find a way to collect and optimize your data and then customize these solutions,” said Bailoun. 

He added: “You need to work with data, not only yourself. You need to look at the market. You need to look at the region and start building up on the data you have to customize the solutions or build up these solutions.” 

The Visa official further said that the implementation of advanced technologies like Artificial Intelligence is also crucial to elevate the growth of both physical and e-commerce retail sectors. 

“Today when you look at social media, sometimes you like something and you read more about it. Then it becomes it pops up in different areas. It is all AI,” he said. 

A recent report by market research firm IMARC echoed similar sentiments, emphasizing the growing role of technology in shaping the e-commerce retail sector.

According to the report, the increasing use of data analytics and AI algorithms to personalize shopping experiences is a key driver of the market. “The expanding use of data to recommend products based on a user’s browsing and purchase history is making it easier for customers to discover items they may be interested in,” the report stated.

IMARC also highlighted that Saudi Arabia’s e-commerce market was valued at $22.9 billion in 2024, with projections indicating it will reach $708.7 billion by 2033, reflecting a compound annual growth rate of 12.8 percent.

Visa’s Saudi operations

He also talked about Visa’s close cooperation with STC Bank, which recently received a non-objection certificate from the Saudi Central Bank to commence its banking operations in the Kingdom. 

“We are a payment technology network. We work and we enable all players in the ecosystem; be it a traditional bank, digital bank, a wallet, a merchant, or maybe a telco provider. We work and we operate and enable the whole ecosystem,” said Bailoun. 

He added: “STC was a wallet. They’ve converted to become a digital bank. We’ve been working with them when they were a wallet, we will continue working with them when they become a bank again. We enable them to do payment credentials, which means they can issue a card under the Visa brand, and they go and do payments anywhere and everywhere in the world.” 

Calling Saudi Arabia one of the strategic markets of Visa, Bailoun also outlined some of the major initiatives taken by the payment card services company in the Kingdom. 

In October 2024, Visa opened its fifth innovation center globally in Riyadh in the King Abdullah Financial District. 

“Today, if you have a problem statement. If you have anything you want to solve or cater for, we sit down together with many partners, we co-create and come up with a solution in that innovation center,” said Bailoun. 

He added: “In addition, we have some best practices and some experiences that we’ve taken from around the world; be it on the gaming, on AI or gen AI. We have something on urbanization. In the innovation center, we have also added something that will cater for the new cities the likes of Neom, the likes of Qiddiyah.” 

Bailoun also detailed Visa’s major partnerships in the Kingdom with retailers including Cenomi Retail and Marriot Bonvoy. 

“With Cenomi, we have signed a deal to work on two parts; the loyalty platform and we have also worked on something called co-brand. So, Cenomi will have a co-brand credit card. The more you spend on their card, the more loyalty you get, and then you can redeem within the group,” said the Visa official. 

He added: “Marriott Bonvoy is a group of hotels. It’s a loyalty platform, one of the big platforms globally. The card is issued in partnership with Visa and Bonvoy. So, the more you spend, the more you will get points to redeem in Bonvoy hotels.” 


Closing Bell: Saudi Arabia’s main index closes in green at 12,434

Updated 04 February 2025
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Closing Bell: Saudi Arabia’s main index closes in green at 12,434

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 56.90 points or 0.46 percent to close at 12,433.93.

The main index witnessed a total trading turnover of SR6.30 billion ($1.68 billion), with 155 stocks advancing and 70 retreating. 

The Kingdom’s parallel market, Nomu, also gained 139.99 points to close at 31,197.37. 

The MSCI Tadawul Index edged up by 0.44 percent to close at 1,548.61.

The best-performing stock on the main market was Kingdom Holding Co. The firm’s share price increased by 8.89 percent to SR10.78. 

The share price of Allied Cooperative Insurance Group increased by 7.25 percent to SR16.86.

National Medical Care Co. also saw its stock price climb by 4.63 percent to SR162.60.

Conversely, the share price of Al-Babtain Power and Telecommunication Co. declined by 4.02 percent to SR44.20. 

On the announcements front, Arab National Bank said that it completed the issuance of riyal-denominated additional Tier 1 sukuk through a private placement in the Kingdom. 

The sukuk issuance was completed under the financial institution’s SR11.25 billion additional Tier 1 capital sukuk program, at a value of SR3.35 billion.

Arab National Bank saw its share price increase by 0.09 percent to close at SR21.52 

Bank Albilad said that its net profit in 2024 reached SR2.8 billion in 2024, representing a rise of 18.47 percent compared to the previous year. 

In a Tadawul statement, the financial institution said that the increase in net profit was driven by an 8 percent rise in net income from investing and financing assets, despite return on deposits and financial liabilities increased by 20 percent. 

The share price of Bank Albilad, however, declined by 0.51 percent reaching SR38.65.


Cenomi Centers explores financing options for $1.3bn flagship malls

Updated 04 February 2025
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Cenomi Centers explores financing options for $1.3bn flagship malls

RIYADH: Saudi developer Cenomi Centers is considering additional financing options to cover the $1.3 billion cost of its two flagship malls, Jawharat Riyadh and Jawharat Jeddah.

In an interview with Arab News during the ongoing Retail Leaders Circle Global Forum 2025 in Riyadh, the company’s Chief Operating Officer, Bruno Wehbe, shared insights into Cenomi’s financial strategy and the ambitious vision driving the projects.

“We are looking at all options to fund the massive growth that’s coming around the corner,” Wehbe stated. “Our CFO is looking at a multitude of sources. These include raising financing again, it could be sukuk, it could be something else.”

The COO also pointed out that potential funding sources include the sale of non-core assets, such as unused land, a move that has already been announced as part of a broader strategy.

He highlighted that internal operations will contribute to financing growth capital expenditures, stressing that the approach is well-thought-out and strategic.

The Jawharat Riyadh and Jawharat Jeddah projects are set to be transformative for Saudi Arabia’s retail and lifestyle landscape.

“Together, excluding the land, they will cost upward of SR5 billion ($1.3 billion). They are expected to rank among the top one to three in their respective cities and the top five in MENA. This is the benchmark we are aiming for,” Wehbe said.

Jawharat Jeddah is set to open at the end of 2025, with Jawharat Riyadh following in early 2026. These developments are not just aiming to be traditional malls; they are being designed to establish themselves as premier lifestyle destinations.

Jawharat Riyadh, in particular, will stand as one of the region’s largest retail complexes, covering 500,000 sq. meters of land—roughly the size of 70 football fields. The mall will offer 220,000 sq. meters dedicated to retail, office space, entertainment, and food and beverage experiences.

“We are breaking this closed concrete box design that you see across Saudi Arabia, including some Cenomi Centers malls, the old ones in particular,” Wehbe noted. “For example, the Jawharat Riyadh will have almost 27,000 sq. meters of skylight. It’s probably the largest skylight in the Middle East for a lifestyle destination.”

Cenomi Centers is also aiming to set a new benchmark in sustainability. “Sustainability is at the heart of what we do. We’re really aiming to be the first gold LEED-certified mall in the Kingdom, at least in Jawharat Jeddah and then Jawharat Riyadh. We’re aiming for platinum, but we’re promising LEED,” he said.

The tenant mix is a key component of the strategy, according to Wehbe. “What we call ‘magic’ is the mix. You can build the best asset, achieve the highest sustainability standards, and offer the best omnichannel experience. If you don’t have the right mix—meaning the right brands, the right tenants, the right experiences—you won’t have a successful asset,” he explained.

The space allocation within the malls reflects this vision. “We’re planning an additional 65,000 sq. meters of prime office space at Jawharat Riyadh,” Wehbe added.

Phase 2 of the developments will also include an arena, branded residences, and several four- and five-star hotels.

The developer is also focused on introducing unique offerings to the Saudi market. “We are introducing more than 15 to 20 new brands and concepts that will make their debut in Saudi Arabia at Jawharat Riyadh. You’ve never seen them here before,” Wehbe shared.

He continued: “You’re talking about first-of-their-kind concepts created by young Saudi designers and local commissions. We’re also bringing in media studios with broadcast facilities inside Jawharat Riyadh.”

Wehbe also emphasized the company’s commitment to strengthening its financial position and improving its credit rating. “The sukuk we raised last year had multiple purposes. Part of it was used to stabilize and strengthen the capital structure, and part of it went towards improving the credit rating. We had a BB- rating with a stable outlook,” he said.

He added: “Ultimately, our goal is to improve our rating. I personally believe that as soon as growth takes shape—through these two Jawharats and other upcoming announcements—we’ll see progress.”

The company expects significant financial returns from these investments. “Jawharat Riyadh and Jawharat Jeddah will contribute more than 50 percent of our existing EBITDA (earnings before interest, taxes, depreciation, and amortization),” Wehbe stated.

The two malls are projected to generate SR650 million in steady-state EBITDA within about two years, which will account for approximately 50 percent of the current EBITDA base.

“The market will only improve. It’s one of the few bright spots of this region, if not the world,” Wehbe said, highlighting the broader market context and emphasizing how Cenomi Centers’ growth is intricately intertwined with Saudi Arabia’s economic trajectory.

Reflecting on the company’s recent performance, Wehbe described 2024 as a year of record achievements. “We were on track to achieve more than 130 million visits across our 22 centers. 130 million, that’s almost roughly four times the Saudi population. Massive. I don’t think that’s matched anywhere in the Kingdom. We also had record occupancy rates,” he remarked.

The scale of these numbers paints a captivating portrait of the company’s success, a vibrant mosaic of growth against a backdrop of a dynamic, ever-evolving retail landscape.

Looking to the future, Cenomi Centers is determined to deliver on its promises and further elevate investor confidence.

“Investors will finally get the confidence that we are basically executing on what we promised them, and that is the materialization of the promise of the two Jawharats and beyond,” Wehbe concluded.

As the company continues to orchestrate its ambitious vision, these developments beckon as not just destinations, but as a reimagined experience in the heart of a verdant, flourishing market—one that is certainly set to transcend expectations.