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.


GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

Updated 20 February 2026
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GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

RIYADH: Global investors can find a “safe harbor” in the Gulf Cooperation Council as the bloc’s public-private partnerships pipeline offers “compelling” opportunities, according to a new report.

The latest document from the Future Investment Initiative Institute highlights how economies in the region are currently driving the next wave of PPP growth. 

It cites findings from Partnerships Bulletin, which ranks Saudi Arabia as second in the global emerging markets pipeline for PPP projects up to July 2025, and also places Dubai in the top 10.

While that analysis claims the Kingdom has 98 PPP projects either formally published or announced, FII says Saudi Arabia has a further 200 currently awaiting approval.

The findings align with the goals outlined in the Kingdom’s National Privatization Strategy, launched in January, which aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, and exceed 220 PPP contracts by 2030. 

The strategy also aims to increase private sector capital investments to more than SR240 billion ($63.99 billion) by 2030.

The FII report says that around 90 percent of FDI into Saudi Arabia now flows into non-oil sectors, from advanced manufacturing and tourism to green energy and digital infrastructure. 

“That shift reflects deliberate policy choices to open markets, standardize regulatory frameworks and use public capital to de-risk new value chains,” says the document, adding: “The result is a kind of safe harbor in an otherwise low-growth, high-uncertainty world.”

It continues: “While global FDI has stagnated or declined in many regions, the GCC’s pipeline of planned infrastructure and industrial projects now exceeds $2.5 trillion, according to Boston Consulting Group data, with PPPs playing a central role in structuring and financing them. For global investors searching for yield, diversification and inflation-linked income, this represents a compelling proposition.”

Commenting on the FII Institute report, Sally Menassa, partner at international management consulting firm Arthur D. Little, said PPPs are a strategic necessity for delivering infrastructure at speed and scale, and described Saudi Arabia’s pipeline as a “powerful execution and financing tool.” 

She added: “The Kingdom’s PPP momentum must remain focused on impact, value creation and execution excellence. PPPs should not be viewed merely as a funding mechanism, but as a structural tool to enhance infrastructure performance, attract investment and support sustainable economic growth in line with Vision 2030.” 

Menassa said that Saudi Arabia’s National Privitization Strategy marks a shift from a project-by-project approach to institutionalization of efforts and value creation.

“By clarifying sector priorities, strengthening project selection criteria, and formalizing governance and investor pathways, the Strategy reduces uncertainty. This clarity enhances investor confidence and improves pipeline quality,” said the Arthur D. Little official. 

Sally Menassa, partner at international management consulting firm Arthur D. Little. Supplied.

She added: “PPP and privatization efforts in Saudi Arabia are not about divestment or the state shifting execution to the private sector, it is really about becoming more productive as a nation. It enhances efficiency, raises service standards, mobilizes private and SME participation, and attracts capital.” 

Menassa further said that the strategy could help the Kingdom achieve stronger fiscal sustainability and higher private sector GDP contribution, both of which are critical components to accelerate the Kingdom’s economic transformation under Vision 2030.

Vijay Valecha, chief investment officer at Century Financial, believes input from the private sector across all stages, from design to construction and operations, improves the efficiency of project delivery and long-term operations in Saudi Arabia. 

“Tighter governance through centralized management at the National Center for Privatization and PPP and a more streamlined process, including template contracts, a clearer regulatory environment, and a transparent pipeline, is likely to improve delivery speed,” said Valecha. 

He added: “This means faster delivery of big projects like Red Sea resorts or Neom, with private firms handling operations to drive innovation. Ultimately, the strategy supercharges diversification by making the private sector the main engine of growth, aligning perfectly with Saudi Arabia’s push for a vibrant, non-oil economy.” 

The FII Institute added that the global flow of FDI is increasingly concentrated in the Gulf Cooperation Council region, driven by ambitious national transformation agendas and deep pools of sovereign wealth.

Tony Hallside, CEO of STP Partners, outlined several factors that are boosting the PPP landscape in the region, which include large infrastructure demand from Vision-level programs and urbanization. 

“Government frameworks that standardise PPP procurement are making projects bankable. Strong regional capital pools and sovereign support will mitigate risk and attract global players. In the GCC, Saudi Arabia’s pipeline itself is one of the largest in the Middle East, indicating strong investor interest,” added Hallside. 

Underscoring the role of growing PPP in Saudi Arabia, the FII report said: “A decade ago, the Kingdom’s solar capacity was negligible, despite its vast solar resource. Through early anchor investments, long-term power purchase agreements and support for national champions, the state seeded a competitive renewables market that now attracts global players on purely commercial terms.” 

Valecha said that clearer PPP laws, standardised contracts and dedicated PPP units have reduced execution risks and made projects more bankable for global infrastructure funds and developers in the GCC region. 

He added that rapid urbanization, a young and growing population, rising data center power demand and energy transition projects create predictable, long-duration cash flows in the region. 

“This combination of policy support, fiscal necessity and structural growth is why the GCC is emerging as one of the fastest-growing PPP markets globally,” said Valecha. 

Vijay Valecha, chief investment officer at Century Financial. Supplied

Key Saudi PPP projects

Yanbu 4 Independent Water Project - supplying water to Medina and Makkah

Location Yanbu, Red Sea coast

Companies involved: Engie, Mowah, Nesma, Saudi Water Partnership Co.

Cost: $826.5 million

Expected delivery date: Operational as of 2024

Hadda Independent Sewage Treatment Plant

Location: Makkah Province

Companies involved: Metito Utilities, Etihad Water and Electricity, SkyBridge Limited Co., Saudi Water Partnership Co.

Expected delivery date: 2028 

As Sufun Solar PV Independent Power Project

Location: Hail region

Companies involved: TotalEnergies, Aljomaih Energy & Water, Saudi Power Procurement Co.

Expected delivery date: Expected to connect to the grid in 2027

Construction of greenfield international airports

Location: Taif, Abha, Qassim, and Hail

Companies involved: Currently in the planning stage; investors are being sought

One-Stop Station Project

Location: Intercity road network across the Kingdom

Companies involved: Saudi Arabia’s Roads General Authority and National Center for Privatization & Public-Private Partnership announced a full list of qualified bidders in February.

King Salman Park

Location: Riyadh

Companies involved: King Salman Park Foundation, Ajdan Real Estate, Sedco Capital

Cost: $1 billion

Project: Madinah-3, Buraydah-2, and Tabuk-2 Independent Sewage Treatment Plants

Location: Madinah, Buraydah, and Tabuk

Companies involved: Acciona Agua, Tawzea, Tamasuk, Saudi Water Partnership Co.

Cost: $627 million combined

Riyadh Metro Line 2 Extension

Location: Riyadh

Companies involved: Royal Commission for Riyadh City, Arriyadh New Mobility Consortium, led by Webuild. Riyadh Metro Transit Consultants (JV between US Parsons and France’s Egis and Systra) as project management and construction supervision consultant.

Cost: Up to $900 million

Expected delivery date: 2032


The crucial role of emerging markets

According to the FII Institute report, the ability to deliver resilient infrastructure, expand digital connectivity and accelerate the energy transition will increasingly depend on the strength and legitimacy of PPPs, as fiscal space tightens and investment needs rise. 

FII estimates a $5 trillion global infrastructure financing gap by 2040. It also points to significant regional shortfalls, including an estimated $3.7 trillion gap in the US and an annual $130 billion to $170 billion gap across Africa. In this context, PPPs are moving from a transactional procurement route to a central model for financing and delivery.

The report highlighted that emerging markets, including Saudi Arabia, are currently driving the next wave of PPP growth, with spending across low-and middle-income countries reaching $100.7 billion in 2024, up 16 percent year on year, according to figures from the World Bank. 

Moreover, emerging markets now represent around 61 percent of global PPP activity by gross domestic product share.

According to Partnerships Bulletin’s findings up to July 31 2025, the Philippines leads the emerging-market pipeline with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71, and Peru with 54 projects.

Greece has 42 projects in the pipeline, followed by Dubai at 28, Kenya at 25, Colombia at 24, and Pakistan at 14. 

PPP: An engine of growth

When capital was cheap, PPPs were often treated as an optional extra – a way to shift specific projects off the public balance sheet, or to import private-sector efficiency into construction and operations, the FII report said. 

However, now, nations consider PPPs as a central hub of their economic strategy, as they enable the state to stretch every dollar of public investment using private capital, while retaining strategic control over what gets built, where and to what standard.

“The real differentiator is complexity. When a project presents significant financial uncertainty or unpredictable demand, or if there’s a high level of climate exposure or technological risk, a PPP can give leaders the tools to manage those issues without slowing things down,” said Bob Willen, global managing partner and chairman of Kearney, said in the FII report. 

Erik Ringvold, chief business development officer at Regional Voluntary Carbon Market Co., was quoted in the report as saying that carbon markets will benefit through PPPs, as deepened public-private partnerships could help achieve progress toward national emissions targets, while simultaneously creating economic opportunity and catalyzing new green industries. 

“Saudi Arabia has made large strides toward an emissions compliance system, with an operational carbon standard in place, and an emissions trading system announced to be launched over the coming few years,” said Ringvold. 

He added: “At VCM, we see a clear future carbon vision for Saudi Arabia. One ecosystem. One marketplace. One iconic collaboration – with the PPP model at the heart of its success.” 

PPPs for investors and citizens 

For investors, infrastructure-backed PPPs offer long-duration, often inflation-linked cash flows at a time when public markets are volatile and dominated by a narrow set of mega-cap technology stocks. 

For citizens, well-designed PPPs can mean better services, more resilient infrastructure and faster progress toward climate and development goals, without unsustainable tax rises or austerity. 

FII, however, cautioned that public consent is becoming decisive. Across seven countries, only 23 percent of citizens agree that PPPs “equally benefit everyone”, compared with 41 percent of business and government leaders.

Tony Hallside, CEO of STP Partners. Supplied

Hallside said that public consent hinges on transparency, accountability, and visible service outcomes. 

He added that governments should publish clear procurement frameworks, communicate cost-benefit and performance expectations in plain language, and measure user satisfaction and service quality over time — “reinforcing that PPPs deliver tangible improvements in infrastructure and services.” 

Menassa echoed similar views and said that communication with the public is not sufficient, but the performance and execution phase holds the key to PPP projects. 

“Winning public opinion for PPPs is rather a marathon not a race. It starts with building awareness and trust by providing transparency and demonstrating value for money, ensuring affordability and service quality of public services is maintained through strong regulatory oversight, and ensuring competitive, transparent procurement processes,” added Menassa. 

According to the Arthur D. Little official, the public must see tangible improvements in service reliability, efficiency and accountability, and acceptance will follow.

“The world can’t afford to delay the infrastructure and energy transition investments that will determine prosperity – and planetary stability – for decades to come. Nor can it fund them through public budgets alone. Financing the future is, by definition, a joint endeavour,” added the FII report.