Concerns over AI-driven job losses in the UAE and Gulf Cooperation Council countries have eased markedly over the past year, although the technology continues to reshape how jobs are defined and structured, according to a new report by Cooper Fitch.

According to the “AI and the Future of Talent 2027” report, only 14% of respondents now expect AI-related job cuts over the next 12 to 24 months, down from 31% in last year’s survey.

Instead of eliminating positions entirely, organisations are increasingly merging duties and responsibilities. Some 22% of companies said they had begun consolidating roles, while another 41% were considering doing so.

Nearly two-thirds of respondents said AI adoption in their organisations had reached operational deployment or beyond, compared with only around 19% of companies at the operational stage in last year’s survey.

Across the UAE and other GCC countries, 44% of organisations now use AI for specific applications, but only 8% have fully integrated the technology across all operations.

However, regulatory and governance frameworks have not developed at the same pace as AI adoption. According to the report, 57% of organisations either have no formal AI governance framework or rely only on informal or still-developing mechanisms.

The figure rises to 81% among regional companies operating in GCC countries. Only 10% of respondents in this group said they had a comprehensive, established AI governance framework, although 97% reported some use of the technology.

Senior executives more optimistic than middle managers
The Cooper Fitch survey reveals a significant gap between the views of senior executives and those of employees directly involved in the day-to-day implementation of AI.

While 31% of senior executives said AI had performed above their expectations, only 4% of department heads shared that view.

By contrast, 41% of managers and 50% of operational employees said AI had performed below expectations, compared with just 19% of senior executives.

Despite this divide, productivity gains remain the most significant measurable benefit of AI across all management levels. Some 53% of senior executives, 68% of department heads and 63% of middle managers identified improved productivity as one of AI’s most important benefits.

By contrast, only 4% of respondents across these groups said AI had directly increased revenue.

Entry-level jobs face the greatest risk
A key concern highlighted in the report is the decline in tasks associated with entry-level positions, including research, initial drafting, administrative coordination and routine data analysis. These tasks have traditionally played an important role in training junior employees and developing their judgement and critical-thinking skills.

Respondents identified initial content drafting, report writing, basic research, administrative coordination and routine problem-solving as among the tasks most affected by automation.

At the same time, new roles created by the expansion of AI, including Chief AI Officer, AI governance officer and AI strategist, typically require prior experience or technical expertise, leaving few career pathways for entry-level candidates.

The report said: “If future leaders have fewer opportunities to develop judgement through independent problem-solving, will tomorrow’s CEOs be distinguished by their strategic vision, or by their ability to direct AI to produce strategy?”

Investment rises as challenges persist
The report also shows a significant increase in mid-range investment. Some 27% of respondents now report annual AI budgets of between $500,000 and $5 million, up from 19% in the previous survey.

Investment above $5 million remained almost unchanged at 7%.

UAE respondents were more likely than those in other countries to report high levels of AI investment. Some 11% of UAE companies said they spend more than $5 million annually in this area, compared with 3% in Saudi Arabia.

At the lower end of the investment scale, 44% of Saudi respondents reported budgets below $500,000, compared with 36% in the UAE.

Data privacy and regulatory risks were also identified as the leading barriers to AI development across different types of organisations. Some 44% of regional GCC companies and 45% of multinational companies cited these issues as major obstacles to progress.

Despite these challenges, the overall outlook on AI remains positive. Some 90% of respondents said their organisations were either enthusiastic about AI or cautiously optimistic.

However, cautious optimism, cited by 46% of respondents, has now overtaken outright enthusiasm as the prevailing sentiment.

Around 65% of respondents also said AI-generated outputs are always reviewed by a person before use, indicating that human oversight remains central to decision-making despite the technology’s growing role.

Half of respondents from multinational companies also said they use AI in their decision-making processes.