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.


Pakistan ‘high priority’ economic opportunity for us, Saudi top minister says in Islamabad

Updated 6 sec ago
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Pakistan ‘high priority’ economic opportunity for us, Saudi top minister says in Islamabad

ISLAMABAD: Pakistan is a “high-priority economic investment and business opportunity” for Saudi Arabia, the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak said on Monday, as a two-day Pak-Saudi investment conference kicked off in Islamabad with a focus on business-to-business engagements. 

A 50-member delegation led by Al-Mubarak arrived in Pakistan on Sunday, comprising some 30 Saudi companies from the fields of IT, telecoms, energy, aviation, construction, mining exploration, agriculture and human resource development.

“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” Al-Mubarak said as he addressed the investment summit. 

“We believe in the great potential of Pakistan’s economy, demographics and talent as well as location and natural resources.”

Al-Mubarak said this was his second visit to Pakistan in two weeks and many influential leaders from globally renowned Saudi companies were part of his delegation.

“Today, we want to connect you [Pakistan] all to Saudi companies who desire to continue building their international presence, for Saudi Arabia’s ambitions do not stop at our borders and we would like to see Pakistan as one of our leading international partners,” the Saudi official added. 

“So, this gathering provides a wonderful opportunity for them [Saudi companies] to develop a deeper understanding of the great opportunities available for investment in Pakistan and to learn about related regulations, requirements, and incentives.”

Addressing a press conference in Islamabad, Petroleum Minister Dr. Musadik Malik said 125 Pakistani companies were negotiating with the Saudi companies who were visiting the country.

“First, there were government-to-government agreements during the visit of the Saudi foreign minister [last month] and now there will be business-to-business agreements,” he said.

“To facilitate the visiting Saudi companies, the Pakistani commerce ministry has affiliated one focal person with each Saudi company.”

Minister for Commerce Jam Kamal Khan said Pakistani and Saudi companies were discussing joint ventures and collaboration in diverse sectors. 

“This delegation includes high officials of more than 32 Saudi companies … Saudi businessmen will invest in Pakistan in different stages,” Khan said at the press conference. 

“Pakistani companies are present here, in the energy sector, in the food sector, in the construction sector, in the renewable section, in the ports and shipping section, and the IT services and general services.”

He said the visit by the Saudi delegation was “just the beginning” and now a Pakistani delegation would visit the Kingdom “to move forward toward the implementation phase.”

Investment push 

Pakistan and Saudi Arabia have been closely working in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.

The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from April 27-30 to attend a special two-day meeting of the World Economic Forum. 

On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.

This was Sharif’s second meeting with the crown prince in a month. Before that, he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh.

Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.

During the first half of the current financial year, bilateral trade between Pakistan and Saudi Arabia was recorded at $2.48 billion, with Pakistan’s exports of $262.58 million and Saudi exports of $2.22 billion.

Saudi Arabia has often come to Pakistan’s aid in the past, regularly providing it oil on deferred payments and offering direct financial support to help stabilize its economy and shore up forex reserves.

As things stand, Pakistan desperately needs to shore up its foreign reserves and is in talks with the International Monetary Fund for a new bailout deal, for which it needs to signal that it can continue to meet requirements for foreign financing which has been a key demand in previous loan packages. 

Last year Pakistan set up the Special Investment Facilitation Council, a body consisting of Pakistani civilian and military leaders and specially tasked to promote investment in Pakistan. The council is so far focusing on investments in the energy, agriculture, mining, information technology and aviation sectors and specifically targeting Gulf nations.


Oil Updates – prices climb after Israel strikes Gaza, truce talks continue

Updated 07 May 2024
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Oil Updates – prices climb after Israel strikes Gaza, truce talks continue

SINGAPORE: Oil prices edged higher on Tuesday after Israel struck Rafah in Gaza, while negotiations for a ceasefire with Hamas continued without resolution, according to Reuters.

Brent crude futures were up 9 cents, or 0.11 percent, at $83.42 per barrel at 9:35 a.m. Saudi time, while US West Texas Intermediate crude futures rose 7 cents, or 0.09 percent, to $78.55 a barrel.

“Oil prices opened up this morning, with some roadblocks in the ceasefire talks between Israel and Hamas leading market participants to price for geopolitical tensions to potentially drag for longer,” said Yeap Jun Rong, market strategist at IG.

Market participants will be looking ahead to upcoming US crude inventories data releases, Yeap added.

US crude oil and product stockpiles were expected to have fallen last week, a preliminary Reuters poll showed on Monday. The crude inventories could have on average fallen by about 1.2 million barrels in the week to May 3, based on analyst forecasts.

During the session, a stronger dollar capped gains in oil futures as it makes crude more expensive for traders holding other currencies. The dollar index, which measures the greenback against six major peers, was last up at 105.25.

Oil prices had settled higher on Monday, partially reversing last week’s declines. Both contracts had posted the steepest weekly losses in three months as the market focused on weak US jobs data and the possible timing of a Federal Reserve interest rate cut.

Palestinian militant group Hamas on Monday agreed to a Gaza ceasefire proposal from mediators, but Israel said the terms did not meet its demands and pressed ahead with strikes in Rafah while planning to continue negotiations on a deal.

Israeli forces struck Rafah on Gaza’s southern edge from the air and ground and ordered residents to leave parts of the city, which has been a refuge for more than 1 million displaced Palestinians.

The absence of a settlement between the parties in the now seven-month long conflict has supported oil prices, as investors worry regional escalation of the war will disrupt Middle Eastern crude supplies.

Saudi Arabia’s move to raise the official selling prices for its crude sold to Asia, Northwest Europe and the Mediterranean in June also supported prices, signalling expectations of strong demand this summer.

The world’s top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January and at the upper end of traders’ expectations in a Reuters survey.


Saudi Aramco’s net profit hits $27.27bn in Q1

Updated 07 May 2024
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Saudi Aramco’s net profit hits $27.27bn in Q1

RIYADH: Energy giant Saudi Aramco reported a net profit of $27.27 billion in the first three months of this year, marking a 2.04 percent increase compared to the previous quarter.  

According to the company’s statement, the state-owned oil firm’s total revenue for the the three months to the end of March stood at $107.21 billion, with the total operating income for the period reaching $58.88 billion.  

Amin Nasser, president and CEO of Saudi Aramco, said: “Our first quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide.”   

However, when compared with the first quarter of the previous year, the net profit of the Tadawul-listed firm declined by 14.44 percent by the end of March 2024.  

Despite lower net income, Aramco declared a base dividend of $20.3 billion for the first three months of the year and anticipates distributing its fourth performance-linked dividend of $10.8 billion in the second quarter. 

The statement added that the company expects total dividends of $124.3 billion to be declared in 2024, comprising a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.  

Nasser revealed that Saudi Aramco made significant progress in its gas business during the first quarter. 

“We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally-integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholder,” he added.  

In February, the energy giant discovered an additional 15 trillion standard cubic feet of gas and 2 billion barrels of condensate in the Kingdom’s Jafurah Field. 

Additionally, the statement noted that Saudi Aramco awarded $7.7 billion worth of engineering, procurement, and construction contracts for the expansion of the Fadhili Gas Plant, aiming to increase its processing capacity by 1.5 billion standard cubic feet per day. 

Moreover, Aramco completed the acquisition of a 100 percent equity stake in Chilean retailer Esmax in the third quarter of 2023, bolstering the company's downstream expansion efforts. 

“Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies,” added Nasser.  

The statement further added that Saudi Aramco is well-positioned to help meet the world’s growing need for affordable and reliable energy, emphasizing that oil and gas will continue to play a significant role in the global energy mix.  

Additionally, the company noted that it achieved a total hydrocarbon production of 12.4 million barrels of oil equivalent in the first quarter of this year. 

Highlighting Aramco’s commitment to sustainability, the energy giant announced its intention to ramp up its utilization of renewable energy sources, aiming to invest in up to 12 gigawatts of solar photovoltaic and wind projects by 2030. 

In January, the Sudair Solar PV Plant, one of the largest solar installations in the region boasting a capacity of 1.5 GW, achieved full-capacity operation. This project is a joint venture between Aramco, Saudi Arabia’s sovereign wealth fund, and utility developer ACWA Power. 


PIF’s Alat unveils electrification, AI infrastructure business units 

Updated 06 May 2024
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PIF’s Alat unveils electrification, AI infrastructure business units 

RIYADH: Alat, a flagship company of the Public Investment Fund, unveiled two business units in electrification and AI infrastructure, to establish Saudi Arabia as a premier manufacturing hub globally.

The company unveiled its plans during the Milken Institute Conference held in Los Angeles.

According to a press release, the move comes as part of the PIF company’s strategic vision to spearhead a paradigm shift in industry sustainability while propelling Saudi Arabia on the global stage. 

Alat Global CEO Amit Midha said: “I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for the industry.”

The electrification arm will fortify grid technology, catering to the burgeoning demand for electricity driven by exponential growth in renewable energy sources like solar, wind, and hydrogen. 

By harnessing Saudi Arabia’s solar energy and other clean resources, the firm seeks to manufacture innovative solutions that will catalyze the global energy transition and drive decarbonization in industry.

The electrification unit will specifically focus on enhancing transmission and distribution technologies, facilitating the integration of renewable energy into existing grids, and pioneering advancements in gas and hydrogen generation and compression technologies.

On the other front, the AI Infrastructure business unit will address the escalating global demand for AI capabilities across industries. 

This entails the development of cutting-edge technologies encompassing network and communications equipment, servers, data center networking, storage, industrial edge servers, and Industry 4.0 computing. 

“The global electrification market size reached $73.64 billion in 2022 and it is expected to hit around $172.9 billion by 2032, growing at a CAGR of 8.91 percent between 2023 and 2032,” the press release added.

The global AI Infrastructure market is set to hit $460.5 billion by 2033, with a robust 28.3 percent compound annual growth rate, driven by widespread adoption across industries for innovation, decision-making enhancement, and task automation.

As a gold sponsor at the Milken Institute Conference, the firm now has nine business units focused on sustainable technology manufacturing.

“Alat will invest $100 billion by 2030 across these business units to develop key partnerships and build advanced manufacturing capabilities in Saudi Arabia to bring jobs and economic diversification to the Kingdom,” the press release said.


Saudi Arabia’s Qiddiya to build region’s largest water theme park

Updated 06 May 2024
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Saudi Arabia’s Qiddiya to build region’s largest water theme park

  • Aquarabia will also feature the first underwater adventure trip with diving vehicles

RIYADH: Saudi Arabia Qiddiya Investment Co. will construct the region’s largest water theme park as a cornerstone of its Six Flags Qiddiya City venture it was announced on Monday.
To be named Aquarabia, Qiddiya hopes to draw visitors from around the globe with 22 attractions and water experiences suitable for all family members, as well as some “world-first” attractions, Saudi Press Agency reported.
These attractions include the world’s first double water loop, the tallest water coaster with the highest jump, the longest and highest water racing track, and the tallest water slide.

Aquarabia will also feature the first underwater adventure trip with diving vehicles, catering to adventure enthusiasts with water sports areas designated for rafting, kayaking, canoeing, free solo climbing, and cliff jumping.
Additionally, the park will introduce the first surfing pool in the Kingdom, incorporating immersive design elements themed around ancient desert water springs and Qiddiya’s wildlife.
With sustainability in mind, Aquarabia will implement advanced systems capable of reducing water waste by up to 90 percent and decreasing energy consumption. As part of the Six Flags Qiddiya project, the venture, the first Six Flags of its kind outside North America, aims to recycle operational waste, diverting over 80 percent from landfill.

Scheduled to open in 2025, both Aquarabia and Six Flags Qiddiya City are situated within Qiddiya City, forming a fully walkable neighborhood offering a diverse array of activities, accommodations, dining options, and relaxation spots.
Abdullah Al-Dawood, managing director of Qiddiya Investment Co., hailed the announcement as a significant milestone for Qiddiya and the entertainment, tourism, and sports sectors in the Kingdom.
He emphasized that the projects will cater to diverse entertainment needs while contributing to economic diversification and job creation in the tourism sector.
The project also aims to meet the growing local demand for immersive entertainment experiences, particularly in water activities, aligning with the goals of Saudi Arabia’s Vision 2030 to enhance local tourism and employment opportunities.
The unveiling of Aquarabia follows the announcement of several other entertainment, sports, and cultural attractions in Qiddiya, including the world’s first multi-use gaming and electronic sports area, the multi-sport Prince Mohammed bin Salman Stadium and the Dragon Ball amusement park.