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16.10.2025

Embrace AI Innovation with Strong Governance

As cyber threats escalate, organizations must invest in predictive threat intelligence, continuous monitoring, and zero-trust environments to secure data integrity. AI plays a crucial role by detecting anomalies and responding quicker than traditional systems. However, it also introduces new vulnerabilities, making testing and governance essential, an expert noted.

“For UAE companies, aligning AI adoption with clear business goals is vital, rather than chasing technology for its own sake. Wise AI investment begins with strong data foundations, ensuring data quality, and implementing robust governance frameworks. Without reliable data, even advanced AI models fail to provide valuable insights,” said Stephen Anderson, Middle East Strategy and Markets Leader at PwC Middle East, to Khaleej Times.

PwC advises organizations to start their AI journey by addressing real, measurable business challenges before choosing any technology solution. “Smart investment involves building the right capabilities, governance frameworks, and empowering a workforce to work confidently with AI. Our approach focuses on combining data, strategy, and human insight to unlock sustainable value and long-term competitive advantage, rather than short-term gains. We call it ‘human-led, tech-powered’,” Anderson explained.

A major oversight is assuming technology alone drives transformation. Many organizations invest heavily in tools but neglect the readiness of their data, systems, and people. Reliable data is often fragmented, limiting AI outputs’ accuracy and trustworthiness.

Another oversight is ignoring change management. Employees must understand how AI integrates into their roles and enhances their contribution. Without communication and training, resistance can hinder progress. Lastly, governance is often an afterthought. AI systems need to be transparent, auditable, and accountable to avoid ethical or reputational risks.

Stephen Anderson, Middle East Strategy and Markets Leader at PwC Middle East.

Innovation and governance enhance each other, Anderson emphasized. “Innovation flourishes where there is trust, and trust arises from clear standards and ethical oversight. The region’s most advanced organizations experiment boldly but within a structured framework. A practical model involves a dedicated committee defining ethical boundaries, monitoring performance, and ensuring compliance. Within that structure, teams are encouraged to explore new ideas and test them safely,” Anderson noted.

In the UAE, where innovation progresses at remarkable speed, responsible AI means aligning technological ambition with national values: transparency, inclusion, and long-term vision. The UAE’s National AI Strategy 2031 has already established a strong foundation for this by centering on people and ethics.

“Responsible AI adoption, in our view, is about building progress on trust. This entails designing inclusive algorithms, monitoring outcomes for bias, and forming teams reflecting the region’s diversity. It also involves collaboration between business, government, and academia to set standards safeguarding public trust,” Anderson stated.

PwC’s recent global research, Value in Motion, indicates that trillions of dollars are shifting across industries as AI, climate change, and geopolitics reshape organizational operations and growth. For UAE companies, the key is to identify where value is shifting and position themselves at the center of that change, Anderson said. “There is immense potential, offering an unprecedented opportunity for local businesses to transition from experimentation to leadership. By combining the UAE’s innovation-friendly policies with strong governance, data readiness, and responsible AI practices, companies here can capture a disproportionate share of this global value,” Anderson added.