RIYADH: Saudi Aramco signed a memorandum of understanding with Microsoft to explore industrial artificial intelligence initiatives aimed at improving operational efficiency, strengthening digital sovereignty, and expanding the Kingdom’s technical workforce. 

The non-binding agreement builds on a long-standing partnership between the state energy giant and the US technology firm, focusing on deploying AI-driven industrial solutions built on Microsoft Azure and embedding them into core operations. 

The companies will examine ways to co-develop and commercialize industrial AI systems for the energy sector, including the potential creation of a global marketplace for Saudi-developed technologies, according to a joint press release. 

Ahmad O. Al Khowaiter, Aramco executive vice president of Technology & Innovation, said: “Aramco is driving the energy sector’s digital transformation by creating a secure, intelligent, and collaborative digital ecosystem.”  

He added: “In partnership with Microsoft, we seek to further scale cutting-edge digital and AI solutions in that sector to achieve efficiency and innovation — without compromising the highest standards of security and governance.” 

A key component of the agreement is digital sovereignty. The companies will explore a roadmap for deploying Microsoft cloud solutions with enhanced sovereign controls to meet national data residency requirements, an area of increasing focus for Gulf governments seeking greater control over strategic data infrastructure. 

The pact also includes plans to streamline Aramco’s global digital architecture and engage Saudi technology integrators to expand AI adoption across the industrial value chain. 

Beyond infrastructure, the collaboration emphasizes workforce development. The companies are exploring targeted programs to expand skills in AI engineering, cybersecurity, data governance, and product management, building on Microsoft’s existing training initiatives in the Kingdom. 

“This marks the next step in our long-standing collaboration with Aramco, exploring how industrial AI can move from pilots into core operations to improve efficiency and resilience at scale,” said Brad Smith, Microsoft vice chair and president. 

He added: “Our focus is on building strong foundations — sovereign-ready digital infrastructure, trusted governance, and the skills needed for responsible industrial AI adoption.”  

As a global industry leader, he said, Aramco has the opportunity to set a reference for large-scale, responsible industrial AI transformation aligned with Saudi Arabia’s Vision 2030.