What is an AI strategy? And How Growth-Stage Companies in Dubai Can Get it Right

I. Understanding AI Strategy for Startups and Digital Businesses

In the rapidly evolving business landscape of Dubai, having a solid AI Strategy has become a critical component for businesses that want to continue thriving. With the UAE's commitment to becoming a global leader in artificial intelligence, and the ever increasing AI adoption across the board, understanding and implementing a robust AI strategy is a non-negotiable.

However, designing and implementing the right AI strategy is more difficult than it sounds. According to a 2025 report by BCG, only 5% of over 1,250 global companies studied are achieving measurable value from AI investments, such as revenue growth, cost reductions, and improved workflows. In contrast, 60% have realised little to no benefit. This highlights the importance of a well-defined AI strategy in ensuring that investments translate into tangible business outcomes. Business Insider

When playing in this hyper-competitive business landscape, having a robust AI strategy is essential for startups, growth-stage companies, and digital-first brands alike. But what exactly is an AI strategy, and how can businesses effectively leverage it to drive results?

This article explores what constitutes a successful AI strategy and provides actionable insights for companies aiming to harness the full potential of AI in Dubai's competitive market.

II. What is an AI Strategy? (Enterprise Definition)

An AI strategy is a comprehensive plan that outlines how an organisation will leverage AI to achieve its business objectives. A well-crafted AI strategy serves as a roadmap for guiding the adoption and management of AI technologies within the organisational framework, prioritising high-value use-cases, and aligning initiatives with core business objectives.

Having a clear AI strategy ensures that investments in AI deliver tangible business value, rather than fragmented pilots or wasted budgets. According to McKinsey, only 5–10% of organisations worldwide achieve significant value from AI at scale, highlighting the importance of a structured approach (McKinsey).

The key components of a successful AI strategy from global firms like McKinsey include:

Strategic Alignment: Ensuring that AI initiatives are closely aligned with the organisation's business goals and objectives. This alignment helps prioritise AI projects that can deliver the most significant impact and supports the broader vision of the company.
Data Strategy: Establishing a robust data infrastructure to support AI initiatives. This includes data collection, storage, processing, and governance, ensuring that high-quality data is available for AI models. (Google Cloud)
Technology Infrastructure: Implementing the necessary technological tools and platforms to support AI development and deployment. This encompasses hardware, software, and cloud services that facilitate AI operations.
Talent and Operating Model: Building a team with the requisite skills in AI, machine learning, data science, and related fields. This may involve hiring new talent, up-skilling existing employees, or partnering with external experts.
Governance and Ethics: Developing policies and frameworks to ensure the responsible and ethical use of AI. This includes addressing issues related to data privacy, algorithmic bias, and transparency. (TSI)
Performance Metrics: Defining clear KPIs, dashboards, and review cycles to monitor performance, scale successful initiatives, and continuously improve outcomes.

For growth-stage companies in Dubai, developing an effective AI strategy is crucial. The UAE's commitment to becoming a global leader in artificial intelligence, as outlined in the UAE Strategy for Artificial Intelligence, underscores the importance of AI adoption across various sectors. By aligning AI initiatives with business objectives, companies can harness the full potential of AI to drive innovation, enhance operational efficiency, and achieve sustainable growth.

III. Why Growth-Stage Companies in Dubai Need an AI Strategy

For growth-stage companies, startups, SMEs, and digital-first brands in Dubai, having a well-defined AI strategy is a business imperative. Rapid digital adoption, competitive pressures, and evolving customer expectations mean that AI is the key driver of efficiency, innovation, and growth.

However, a full-on enterprise AI strategy is overkill and we propose a leaner structure that actually makes AI work for the business, and for the people that work in it.

A clear AI strategy ensures that you are able to:

Maximise ROI: Prioritise projects that deliver measurable business value rather than investing in fragmented AI experiments.
Accelerate Adoption: Reduce delays and pilot fatigue by having a structured roadmap that guides implementation.
Mitigate Risks: Lean governance and planning help avoid wasted spend, compliance issues, and operational pitfalls.

High-Value AI Use Cases for Growth-Stage Companies in Dubai

AI-Powered Personalisation for E-Commerce: UAE consumers increasingly expect AI-driven shopping experiences. According to Adyen’s 2025 Annual Retail Report, 70% of UAE consumers now interact with AI in their shopping journey, a 44% increase from 2024 (Al Etihad). Personalized recommendations, dynamic pricing, and AI-powered merchandising help e-commerce brands compete and drive sales effectively.
Predictive Analytics for Operations and Logistics: AI can optimise inventory, forecast demand, and streamline delivery routes. Dubai-based logistics companies using predictive analytics have reported improved delivery efficiency and reduced operational costs (IBM).

Other high-impact applications include AI chatbots for customer support, automated marketing, fraud detection in fintech, and AI-driven talent management - areas where growth-stage companies can scale initiatives quickly and efficiently.

How to Build an Effective AI Strategy (for Startups and Brands)

Building a successful AI strategy requires a structured approach that balances ambition with feasibility. For growth-stage companies, startups, SMEs, and digital-first brands in Dubai, following our clear framework ensures AI initiatives deliver measurable business outcomes while minimising risk.

Our AI strategy framework is rooted in global best practices but takes only a week from start to finish, with the following general steps (ask us for more details):

Establish a Clear AI Vision:

Define the strategic objectives AI should support, and link them to specific KPIs. This ensures alignment across teams and prioritises initiatives that deliver the highest business impact.
Prioritise High-Impact Opportunities and Use Cases:

Evaluate potential AI projects based on their feasibility, expected ROI, and alignment with business objectives. Focus first on projects that are achievable with existing resources but offer significant value.
Develop a Lean AI Roadmap:

Create a phased implementation plan with clear milestones, resource allocation, and timelines. This allows growth-stage companies to test, learn, and scale initiatives without overextending budgets or teams.
Invest in Data and Talent:

Ensure that data infrastructure, quality, and accessibility are ready to support AI projects. Additionally, assess internal skills and consider quick partnerships or training programs to fill capability gaps.
Define Simple Governance Guidelines:

Implement basic rules to manage risks, maintain compliance with local regulations, and mitigate bias in AI systems. The presence of a simple governance framework promotes responsible AI deployment and long-term trust.
Measure, Iterate, and Scale:

Continuously track KPIs and evaluate outcomes. Use insights to refine existing projects, discontinue low-performing initiatives, and scale successful AI applications across the organisation, if applicable.

For growth-stage companies in Dubai, combining in-house capabilities with local boutique consultancies or specialised partners can accelerate adoption, reduce costs, and provide expert guidance for sustainable AI implementation.

Conclusion

For growth-stage companies, startups, SMEs, and digital-first brands in Dubai, developing a well-defined AI strategy is no longer optional - it is a critical business imperative. A structured AI strategy ensures that investments in technology deliver measurable outcomes, drive operational efficiency, and support scalable growth.

However, typical AI strategy frameworks are overkill and can actually stunt AI adoption and make businesses miss out on opportunities.

Our AI strategy framework helps in clearly defining objectives, prioritising high-value use cases, investing in the right data and talent, and implementing governance and measurement frameworks, companies can transform AI from an experimental tool into a strategic driver of business success.

In Dubai’s competitive and rapidly evolving market, organisations that adopt a proactive, structured approach to AI strategy are best positioned to gain a competitive edge, maximise ROI, and sustainably scale their operations.