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.


Oil Updates — prices climb $1 as US court blocks Trump tariffs

Updated 11 sec ago
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Oil Updates — prices climb $1 as US court blocks Trump tariffs

SINGAPORE: Oil prices rose by about $1 a barrel on Thursday after a US court blocked most of President Donald Trump’s tariffs, while the market was watching out for potential new US sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.
Brent crude futures climbed $1.03, or 1.6 percent, to $65.93 a barrel. US West Texas Intermediate crude advanced by $1.06, or 1.7 percent, to $62.90 a barrel at 08:30 a.m. Saudi time.
A US trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from US trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute.
The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but analysts said the relief may only be temporary given the Trump administration has said it will appeal.
“But for now, investors get a breather from the economic uncertainty they love to loathe,” said Matt Simpson, an analyst at City Index in Brisbane.
On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July.
“We’re assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” said ING analysts in a note.
Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March.
Venezuela in April canceled cargoes scheduled to Chevron citing payment uncertainties related to US sanctions. Chevron was exporting 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country’s total before that.
“From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply,” Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 600,000 to 700,000 bpd.
Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the US Department of Energy.
According to the market sources familiar with the API data, US crude and gasoline stocks fell last week while distillate inventories rose.
Meanwhile, a wildfire in the Canadian province of Alberta has prompted the temporary shutdown of some oil and gas production which could reduce supply, and forced residents of a small town to evacuate.


OPEC+ moves to set 2027 production baselines

Updated 28 May 2025
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OPEC+ moves to set 2027 production baselines

RIYADH: OPEC+ announced on Wednesday that it will establish a framework to determine new oil production baselines for 2027, marking a significant step in its long-term planning, said an official statement.

The alliance — comprising the Organization of the Petroleum Exporting Countries and partners including Russia—has been negotiating revised production baselines for several years. These baselines serve as reference points from which member states adjust their output levels.

According to the statement issued following the group’s meeting, said it had tasked the OPEC Secretariat with developing a mechanism to assess each country’s maximum production capacity. These assessments will form the basis for 2027 production targets across all member nations.

Since 2022, the group has implemented three tiers of output cuts. Two remain in place through the end of 2026, while the third is being gradually phased out by eight participating countries. No changes were made to the group’s current production policy at Wednesday’s session.

Due to the sensitive nature of the discussions, all sources spoke on condition of anonymity.

The 2027 baselines, once finalized, are expected to guide production policy after the current round of cuts expires.

Oil prices, which dipped below $60 per barrel in April—the lowest level in four years—following OPEC+’s decision to accelerate May output and amid trade tensions triggered by US tariffs, have since rebounded to around $65.


Saudi Arabia launches advanced manufacturing center to boost industrial innovation

Updated 28 May 2025
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Saudi Arabia launches advanced manufacturing center to boost industrial innovation

JEDDAH: Saudi Arabia has launched the Advanced Manufacturing and Production Center, a key initiative aimed at accelerating the Kingdom’s industrial transformation through the adoption of advanced technologies and sustainable practices.

Unveiled on May 28, the center is set to play a central role in promoting efficiency, flexibility, and growth within the manufacturing sector. It will utilize technologies associated with the Fourth Industrial Revolution to localize production and enhance Saudi Arabia’s competitiveness on the global stage.

The initiative also supports strategic industries while aligning with the objectives of Saudi Vision 2030, the country’s long-term plan to diversify its economy. A major focus is encouraging private sector collaboration to speed up the integration of emerging technologies into industrial operations.

The launch supports the National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. The strategy is designed to attract investment, scale up local production, and strengthen non-oil exports.

The Ministry of Industry and Mineral Resources is overseeing several projects to advance the Kingdom’s industrial and logistical infrastructure, positioning Saudi Arabia as a key player in global manufacturing and trade.

“Adopting the latest industrial technologies raises the efficiency of our industrial sector and enhances its competitiveness regionally and globally,” said Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, in a post shared by the ministry on X.

In an accompanying video, the ministry reiterated the center’s significance in meeting national goals: “The Advanced Manufacturing and Production Center opens doors to industrial investment opportunities and stimulates the sector to adopt new manufacturing technologies within industrial facilities.”

The center is supported by several initiatives and programs, including the Future Factories Program, which aims to modernize 4,000 factories across the Kingdom. The FFP focuses on integrating advanced manufacturing systems to boost efficiency and build more resilient supply chains—particularly in critical sectors such as food and petrochemicals.

According to its official website, the center serves as a hub for industrial innovation, providing consultancy services, training, and technological solutions. It is dedicated to fostering sustainability and competitiveness across the manufacturing sector.

Through these efforts, the center is expected to significantly contribute to Saudi Arabia’s Vision 2030 goals by localizing high-tech capabilities, attracting investment, and advancing the industrial sector’s role in the nation’s economic diversification.


Closing Bell: Saudi main index rises to close at 11,052

Updated 28 May 2025
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Closing Bell: Saudi main index rises to close at 11,052

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced on Wednesday, closing higher by 127.58 points, or 1.17 percent, to reach 11,052.76, reflecting broad market optimism.

Trading activity remained robust, with a total turnover of SR4.57 billion ($1.21 billion). Of the listed stocks, 202 posted gains while 44 declined.

The Kingdom’s parallel market, Nomu, also recorded gains, rising 340.91 points, or 1.28 percent, to close at 26,932.95. The market saw 48 advancing stocks against 34 decliners.

Meanwhile, the MSCI Tadawul 30 Index climbed 15.12 points, or 1.08 percent, ending the session at 1,413.70.

Fawaz Abdulaziz Alhokair Co. emerged as the session’s top performer, with its share price jumping 5.77 percent to SR16.50.

Ataa Educational Co. and Kingdom Holding Co. followed closely, gaining 5.46 percent and 5.22 percent to close at SR61.80 and SR8.66, respectively.

On the downside, United Carton Industries Co. registered the steepest decline, falling 4.87 percent to SR46.85. Banan Real Estate Co. dropped 2.4 percent to SR4.48, while Nama Chemicals Co. slipped 1.78 percent to SR27.55.

On the announcements front, Saudi AZM for Communication and Information Technology Co. disclosed it has submitted a request to transfer its listing to the main market.

Additionally, the initial public offering for Flynas Co. began on May 28 and will conclude on June 1. The offering is priced at SR80 per share, with a retail tranche comprising 10.25 million shares. According to a statement, BSF Capital is the lead manager.

Alkathiri Holding Co. announced that its subsidiary has signed a 50-year lease agreement valued at SR143 million with the Asir Region Municipality to develop a commercial and hospitality project in the city of Abha.

According to a statement published on the Saudi stock exchange, the project will feature a four-star hotel with a capacity of 180 keys, alongside retail and entertainment facilities. The development aims to boost tourism and enhance commercial services in the Asir region.

The lease will officially begin upon the land handover by the Investment Committee of the Asir Region Municipality.

Shares of Alkathiri Holding closed Wednesday’s trading session at SR2.06, marking a 1.96 percent gain.

In a separate disclosure, Mufeed Co. announced that its board of directors has recommended to the ordinary general assembly the transfer of its statutory reserve balance — totaling SR3.49 million, as reported in the financial statements for the year ended Dec. 31, 2024 —to retained earnings.


Saudi Arabia’s Asir region revitalizes 95% of stalled projects

Updated 28 May 2025
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Saudi Arabia’s Asir region revitalizes 95% of stalled projects

  • Asir is a vast region in the Kingdom with a population exceeding 2 million people
  • Interest from global players seeking early opportunities in the region’s evolving landscape has grown

ABHA: Saudi Arabia’s Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.

In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.

“The total number of cases that have been brought to this committee to address has been 63, all brought to the table,” Al-Dabbagh said.

He continued: “Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they’re working on them, and they’re going to solve them relatively soon.”

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Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.

“This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past,” Al-Dabbagh said.

The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.

This resolution mechanism plays a key role in supporting the region’s development strategy, which focuses on unlocking investment potential across various sectors.

“First of all, we have a strategy that drives everything that we are doing,” Al-Dabbagh said.

He added: “The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That’s one, and that gives us a lot of momentum in working with the government ecosystem and the private sector.”

Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.

“Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board.”

He added: “This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We’re looking at fisheries and agriculture. We’re looking at renewable energy. We’re looking at mining among other sectors.”

The authority is also aligning its economic strategy with educational institutions to ensure the region’s workforce is equipped to meet the demands of upcoming sectors.

“We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy,” he said.

On attracting investments, Al-Dabbagh stated: “What I call the investment ecosystem in Asir, it’s the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that’s headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors.”

He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.

“Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they’re coming in, they’re coming in early and they’re going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground.”

Attracting FDIs

Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region’s evolving landscape.

“One of the speakers in today’s forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with,” Al-Dabbagh said.

He concluded: “Our doors are open. We’re very happy to meet with the investors from anywhere.”