An article by Ahmed Mahmoud, CEO, DXwand

Artificial intelligence was once the preserve of large enterprises with deep pockets and complex IT departments. Today, small and medium-sized enterprises (SMEs) across the Middle East are adopting AI to cut costs, improve customer service, and scale operations – without the need for heavy infrastructure.

Historically, SMEs struggled with the cost and complexity of digital transformation. Now, no-code platforms and user-friendly design are lowering barriers, making automation accessible to even the leanest teams.

Beyond automation: Building agility

Customer service and sales have been among the earliest beneficiaries. AI systems are increasingly used to handle routine tasks such as responding to enquiries, recommending products, and managing requests—in ways that feel conversational and natural, not rigid or robotic.

This is especially relevant in the Middle East, where a young, digitally native population expects speed, personalisation, and round-the-clock support. For SMEs competing in such an environment, AI is less about efficiency alone and more about enabling stronger, more responsive relationships with customers.

The results are measurable. Businesses adopting AI tools report higher productivity, reduced manual tasks, fewer workflow bottlenecks, and faster response times in decision-making processes. Together, these gains are helping SMEs remain competitive in increasingly dynamic markets.

What SMEs need from AI

Not all tools deliver equal value. For SMEs, the most effective AI solutions are those that are accessible, affordable, and simple to implement. Subscription-based models allow businesses to start small and scale up gradually, avoiding large upfront costs.

Capabilities now extend beyond customer service: some AI platforms can support sales, market research, and audience analysis. These tools allow SMEs to personalise engagements and streamline workflows while keeping technical demands low.

Still, technology alone is not enough. Long-term value depends on ethical design and human oversight. Transparency, fairness, and respect for privacy are vital to building trust — an increasingly important currency in a crowded digital marketplace.

A strategic shift, not just a tool

Adopting AI is no longer a technical upgrade; it represents a mindset shift. For SMEs, the greater risk lies in delay. Competitors who adopt AI will operate faster and more responsively, while those who hesitate may struggle to catch up.

The opportunity is not limited to the private sector. Kuwait’s Ministry of Education, for instance, launched “Chat with Hamad,” an AI-powered assistant serving students, teachers, and parents. The system processed over 16,000 pages of content and handled half a million conversations in its first month. If a public-sector initiative at this scale can deliver such impact, SMEs — who face many of the same challenges around responsiveness and efficiency — stand to gain significantly from adopting similar solutions tailored to their needs.

The regional picture

The Middle East’s AI adoption is unfolding against the backdrop of strong government support. The UAE’s AI Strategy 2031 targets integration across healthcare, education, and retail — all sectors where SMEs dominate. Saudi Arabia’s Vision 2030 emphasises digital transformation as a pillar of economic diversification, encouraging local SMEs to use AI as part of their growth journeys. Egypt too has signalled its intent to accelerate SME digitalisation as part of broader economic reform.

Such government-led initiatives, combined with a tech-savvy youth population, are creating fertile ground for SMEs to play an outsized role in the region’s AI-driven economic future.

Looking ahead

As SMEs across the Middle East continue their digital journeys, AI adoption will deepen beyond customer service and sales into supply chains, financial forecasting, and other core operations. Governments are investing heavily in digital infrastructure, accelerating this transition.

The message is clear: AI is no longer a distant innovation for large enterprises. It is an accessible, practical tool shaping the future of business. SMEs that act early will not only adapt more easily but also set the standard for resilience and growth in a rapidly evolving market.