UAE's agentic AI push could turn government into engine of economic speed, say experts

MAYS IBRAHIM (ABU DHABI)

The UAE is accelerating its push to become one of the world's leading AI-powered governments, with a sweeping federal strategy to integrate Agentic AI into 50% of government services and operations within two years.

Announced during a UAE Cabinet meeting in April, the initiative would advance the use of AI in government beyond chatbots and basic automation to systems that can process workflows, trigger actions and coordinate tasks across public services with limited human intervention.

Industry experts say that the resulting speed and predictability could become a competitive economic advantage for the UAE.

"What stands out in this announcement is the level of urgency and institutional intent around AI-enabled transformation," Lisa Lyons, Partner and Transformation CoE Lead (IMEA) at Mercer, told Aletihad.

Mercer's Global Talent Trends 2026 Middle East insights show that 74% of C-suite leaders in the region see redesigning work with AI and automation as the leading people priority for return on investment.

Lyons said that the UAE's public-sector ecosystem is well-positioned to move quickly because it can align policy ambition, workforce mobilisation and service transformation faster than many larger governments.

"Agentic AI will only scale where institutions are prepared to rethink workflows, roles and decision-making, not simply introduce new tools," she said.

The Digital Groundwork Behind the UAE's AI Push
The 50% target does not start from scratch. The UAE has spent years building smart government systems, paperless services, digital identity infrastructure and connected public platforms.

Experts said that this base gives the country an advantage as governments worldwide look for ways to move from digital services to AI-led service delivery.

"The UAE has a meaningful head start because it has treated digital government as a national priority for many years," Hetarth Patel, Vice President MEA, Americas & Asia Pacific at WebEngage, told Aletihad.

He added that strong connectivity, high digital adoption and integrated public platforms create ideal conditions for widescale Agentic AI implementation.

Vasudha Khandeparkar, an AI and data expert, agreed that the UAE's strong digital foundation is what makes agentic AI deployment possible in the first place.

"Agentic AI doesn't really exist without that foundational layer underneath it," he told Aletihad. "For an agent to act autonomously, it needs structured workflows, trusted digital identity systems, connected platforms and reliable data foundations."

Unlike generative AI systems that primarily retrieve or create information, Agentic AI is designed to take action. "Most people still think of AI as a chatbot answering questions," Khandeparkar said. "Agentic AI is different because it can actually move the process forward."

In practice, he explained, AI systems could take over the routine steps that slow services down - validating documents, checking eligibility, triggering approvals and routing applications between departments without repeated manual intervention.

Government Speed as an Economic Advantage
The initiative comes as countries worldwide compete to build AI infrastructure, attract talent and set regulations. Haddad said that the UAE's advantage lies in moving "from AI ambition to applied AI at government scale".

That kind of service model could carry economic value beyond convenience, because delays in permits, licensing, renewals and compliance often act as hidden costs for companies.

"The economic advantage is clear: faster, more responsive and more predictable government services reduce friction for residents, investors and businesses," Haddad said, adding that countries able to combine infrastructure, regulation, capital, talent and adoption would have greater influence in shaping AI-enabled governance globally.

The UAE has already committed more than $100 billion to digital infrastructure, sovereign cloud platforms, AI partnerships and data centres, while Abu Dhabi-backed investment vehicle MGX has become increasingly active in global AI projects.

Experts agree the latest announcement sends a strong signal to investors and technology firms looking for large-scale deployment environments.

"Many markets are still debating frameworks, policies and risk boundaries, while the UAE is taking a more execution-led approach, with clear national targets and government-backed adoption," Abhay Pandey, Founder of MAST Consulting Group and CEO of MAS Tech Consulting, told Aletihad.

"For investors, this demonstrates long-term political support for innovation and digital transformation. For technology companies, it signals access to a mature, innovation-friendly environment where AI solutions can be deployed at scale," Pandey added.

He also pointed out that the rollout could create opportunities for startups, cybersecurity providers, governance specialists, cloud companies and system integrators.

"Once government adoption grows, the surrounding needs grow with it," Pandey explained, citing increasing demand for digital identity systems, compliance tools, cybersecurity and AI governance platforms.

Where Agentic AI Could Have the Biggest Impact
Jad Haddad, Partner and Global Head of Quotient - AI By Oliver Wyman and Head of Customer Innovation and Growth, IMEA, said that the biggest gains would likely come in "high-volume, high-visibility services where processes are document-heavy, rules-based and spread across multiple government entities".

Immigration, licensing, permits, procurement and healthcare administration are among the likely early use cases. "In these areas, Agentic AI can move beyond responding to queries and begin supporting end-to-end workflows," he told Aletihad.

For residents and businesses, the shift could fundamentally change how government services are experienced day to day. "Agentic AI can make public services feel less like transactions and more like guided outcomes," said Patel.

Rather than requiring users to navigate multiple departments independently, AI systems could coordinate processes behind the scenes. "Starting a business, for instance, could automatically trigger licensing, compliance checks, banking-related documentation, visa steps and renewal reminders through a single interface," he explained.

The Cabinet meeting also included approval of the National Policy for Advancing Digital Healthcare Services and Artificial Intelligence in the Health Sector.

According to experts, near-term adoption in healthcare is more likely in operational areas such as claims processing, patient navigation, workforce planning and licensing than clinical decision-making.

Training 80,000 Employees to Work with AI
Alongside launching AI-powered service bundles, the government's strategy also includes training 80,000 government employees in Agentic AI to support the large-scale rollout.

Khandeparkar pointed out that employees working within the system are best positioned to catch the gaps and exceptions that AI systems may miss. "They know the edge cases," she said.

While repeatable tasks are the easiest to automate, Khandeparkar noted that effective AI systems still require guardrails and human oversight.

Lyons added that internal capability-building will be key to creating a truly AI-native public sector, rather than one dependent solely on external technology providers.

Mercer's regional data suggests appetite is there: 64% of employees in the Middle East say they would give up a 10% payrise for opportunities to build AI and digital skills, while 80% trust their organisation to teach them the skills needed if their roles evolve.

"Workforce readiness is not a secondary issue in AI transformation. It is one of the main determinants of whether transformation succeeds," Lyons said.