Saudi Arabia’s development story is often described through headline achievements: rising non-oil GDP, expanding digital infrastructure, and ambitious national transformation programs. These indicators matter. Yet development studies remind us that growth figures alone cannot explain how development is experienced in daily life, or whether it is sustainable. Saudi Arabia’s rapid adoption of Artificial Intelligence now makes this distinction increasingly visible. In 2024 alone, non-oil GDP growth was reported at over 4% by major international and national sources, reflecting momentum beyond the oil economy.
AI has moved swiftly from strategy documents into everyday life. National institutions such as the Saudi Data and Artificial Intelligence Authority (SDAIA) have positioned AI as part of a broader state-driven transformation agenda, including the National Strategy for Data and AI approved in 2020. More recently, the Public Investment Fund (PIF) launched HUMAIN in May 2025 to build local AI capability across infrastructure, models, and applications—signaling that AI is now treated as a strategic development sector, not just a technology trend. This acceleration reflects confidence in technology as a driver of national transformation. At the same time, it raises a fundamental development question: how effectively are social and institutional systems adapting to the speed of change?
The labor market offers a clear illustration. Over the past decade, Saudi Arabia has invested heavily in education reform, workforce participation, and youth employment through national programs aimed at building skills for a diversified economy. However, AI-driven systems are reshaping how work begins—particularly through automated recruitment screening, data-driven HR systems, and productivity tools that compress entry-level learning time. Globally, the shift is clear: firms increasingly reward AI literacy and adaptability over traditional entry routes. In Saudi Arabia, this means young graduates entering corporate services, communications, and content industries face higher expectations and faster transitions, alongside new opportunities to develop advanced skills in analytics, automation, and digital operations.
Education reflects a similar moment of transition. Across Saudi universities, generative AI tools have become part of daily student practice—used to draft reports, summarize readings, and support presentations. This trend has created new pressure on institutions to update assessment standards and strengthen academic integrity and critical thinking skills. The development implication is significant: education systems are not only producing degrees, but shaping the cognitive and ethical skills that define long-term national human capital. If AI becomes a substitute for learning rather than a tool that enhances it, the development payoff of educational investment weakens.
Media transformation further highlights the developmental potential of AI when used thoughtfully. Saudi newsrooms and media teams increasingly use AI-supported tools for transcription, translation, content summaries, and platform optimization as audiences move to digital formats. This can make communication more accessible and responsive, especially in fast-moving news cycles. Yet development-oriented media plays a deeper role than output alone: it supports public understanding, social dialogue, and cultural representation. The key is balance—where AI increases efficiency, but editorial judgment protects depth, context, and reliability.
Government digitalization demonstrates how institutional strength can turn innovation into impact. Saudi residents have long interacted with e-government systems such as Absher, which has become a central portal for digital service delivery. By December 2024, the Ministry of Interior reported that unified digital identities issued through Absher exceeded 28 million, reflecting the scale of digital integration in daily life. The volume of usage is also substantial: Absher processed over 42 million electronic transactions in October 2025 alone. These examples show how digital platforms can improve efficiency and accessibility, but also underscore a development reality: trust, governance, and transparency must grow alongside automation.
Taken together, these developments offer a constructive insight: AI does not simply test technological readiness, but reveals development capacity. It highlights where skills systems, institutions, and social norms are aligned—and where further investment is needed. In doing so, AI becomes less a disruptive force and more a diagnostic tool for development: it reveals whether systems can adapt at the same pace as innovation.
Within this broader frame, Saudi Vision 2030 can be understood not only as an economic diversification agenda, but as a long-term development project. Its emphasis on institutional reform, human capital, and quality of life reflects an understanding that sustainable progress depends on people and systems evolving alongside innovation. AI initiatives—from national strategies under SDAIA to industrial-scale investments through PIF—make that reality increasingly visible in practice.
Ultimately, development in Saudi Arabia is shaped not only by what is built, but by how people adapt, learn, and participate in change. Artificial intelligence may accelerate economic transformation, but development succeeds when societies grow capable of navigating that transformation with confidence. Growth creates momentum, but development gives it direction—and Saudi Arabia’s AI journey is increasingly about getting that direction right.
— Amrita Gidvani holds an MSc in Development Studies from SOAS, University of London, and is the Founder and Director of Amara Giving, a UK-based development charity.
