AI Adoption in Human Capital: Gulf Cooperation Council (GCC) Report 2026

A survey of 105 CHROs and senior leaders across Saudi Arabia, the United Arab Emirates (UAE), Qatar, Oman, Bahrain, and Kuwait examining where organizations in the GCC stand on AI adoption, what is holding them back, and what the most advanced organizations are doing differently. Respondents represent Technology, Energy & Utilities, Retail/FMCG, Financial Services, Industrial / Manufacturing, Government and Oil & Gas.

Company sizes range from 500 to more than 10,000 employees. Fieldwork was conducted in Q1 2026.

1 · The Scaling Gap

Almost half of GCC organizations are piloting AI. Almost none are scaling it.

The dominant posture in GCC organizations today is the pilot. Across our respondents, 49% describe themselves as piloting AI in selected functions — active enough to have tools deployed and use cases running, but not yet at the point where AI is reshaping how the organization works at scale. Another 28% are still in exploration mode. Taken together, more than three-quarters of organizations are stuck somewhere between intention and impact.

The tools in use tell a consistent story. Microsoft Copilot dominates the landscape across virtually every sector. ChatGPT follows closely, then Gemini. But for most, the AI portfolio is a collection of productivity applications layered on top of existing work — not a redesign of the work itself.

The three barriers cited most frequently — technology integration (61%), talent gaps (44%), and unclear ROI (37%) — are not technical failures. They are organizational ones. The pilot trap is not a technology problem. It is what happens when organizations buy AI without building the infrastructure to convert it into performance.

Overall AI Adoption Stage

Piloting in selected functions 49%
Exploring use cases, not implementing 28%
Already using AI across functions 16%
Not using and no current plans 7%
"The GCC has no shortage of AI ambition. What it needs now is the organizational architecture to turn pilots into performance and that requires leaders to make decisions that go well beyond the technology budget." - 

Jonathan Holmes. Managing Director, Middle East, Turkey & Africa (META)


81%
Productivity gains — ranked first by a wide margin as the top AI objective
KF GCC Survey 2026
59%
Customer experience — second most-cited strategic objective for AI investment
KF GCC Survey 2026
61%
Technology integration — the top barrier to capturing value from AI, signalling a missing link between IT and business adoption
KF GCC Survey 2026
44%
Talent gaps — the second most cited barrier; without AI fluency, organizations won't move beyond isolated use cases
KF GCC Survey 2026
2 · The Accountability Vacuum

AI needs an owner. In most GCC organizations, it doesn't have one.

Ask who is accountable for AI adoption in a typical GCC organization and you will hear the same three names in different orders: IT, the CEO, and business unit leaders. The IT or Digital function leads — named by 59% of respondents — followed by the CEO or Executive Committee at 45%, and business unit leaders at 30%. Boards and governance committees are involved in 11% of cases. And in 9% of organizations, the honest answer is: no clear owner.

The entity most conspicuously absent from the accountability picture is HR — named as a primary owner by only 3% of respondents — despite the fact that the most material near-term impacts of AI are workforce impacts.

This matters because Korn Ferry's global research tells a clear story about where AI transformation gets led most effectively. Our 2025 CHRO Survey of 756 HR leaders across 50+ countries found that CHROs are now spending most of their time advising CEOs on enterprise-wide transformation. More than a third lead those transformation efforts directly. Yet in the GCC, HR is barely at the AI table at all.

"Today's CHROs aren't just shaping the talent agenda. They're helping to shape the entire strategic direction of the organization influencing decisions that impact everything from corporate culture to the bottom line." -

Vijay Gandhi, Regional Director, Korn Ferry Digital, EMEA

Primary Accountability for AI Adoption

IT / Digital function 59%
CEO / Executive Committee 45%
Business unit leaders 30%
Board / Governance committee 11%
No clear owner 9%
HR 3%
3 · The Readiness Mirage

GCC organizations look AI-ready from the outside. The workforce data tells a different story.

There is a clear gap between the level of AI ambition expressed by GCC organizations and their current state of workforce readiness. Only 1% of organizations consider themselves fully equipped. 30% are not ready at all. The majority — 46% — describe themselves as only somewhat ready.

When it comes to hiring AI-related roles, 42% of respondents are not hiring AI roles at all. Among those who are, senior specialists dominate (43% of hiring responses), with mid-level following (33%) and entry-level at only 15%. The near-absence of entry-level hiring signals a talent architecture that is top-heavy today and hollow tomorrow.

What is often perceived as "resistance" is less about reluctance to change and more a reflection of limited familiarity, unclear expectations, or lack of hands-on experience. Readiness and adoption are not separate challenges but closely interconnected — addressing capability gaps through targeted upskilling simultaneously accelerates workforce readiness and improves employee acceptance.

"Reskilling and upskilling are not just initiatives. They're strategic priorities for organizations looking to remain competitive and the window to build those pipelines is narrowing faster than most GCC leaders appreciate."

Readiness to Reskill / Redeploy Employees

Not ready 30%
Somewhat ready 46%
Mostly ready 23%
Fully ready 1%

Hiring AI Roles: Level Mix

Senior specialists
43%
Mid-level
33%
Entry-level
15%
Not hiring AI roles
42%
4 · HR's Half-Step Forward

HR is piloting AI. It has not yet used AI to transform HR.

Human Resources is one of the most active functions using or piloting AI in GCC organizations. Within HR, talent acquisition leads by a wide margin (50%), followed by employee experience chatbots (43%) and learning and development (33%). More advanced applications — predictive workforce planning, rewards analytics, pay equity analysis, and retention modelling — are still mostly at the planning stage.

The Total Rewards picture is particularly revealing. Of the 105 organizations surveyed, only 11% are using AI in Total Rewards at even an early-stage level. 52% are planning to explore it. 36% are not engaged with it at all. Systems integration emerged as the most common barrier, followed by the view that it is not yet a priority, then data quality.

The gap in rewards strategy is even more pronounced. 64% have no defined rewards approach for AI and data-focused roles. Others are making decisions on a case-by-case basis (23%) or guided by partial frameworks (12%), with only one organization reporting a fully defined rewards strategy. A case-by-case approach is not a strategy — it is an improvisation that compounds cost and inconsistency over time.

"HR leaders have the opportunity to champion data-driven transformation and position themselves as strategic advisors. The function that masters workforce analytics will own the talent agenda — the one that doesn't will be managing its consequences."
HR Areas Currently Using or Piloting AI
Talent Acquisition
50%
Employee Experience / Chatbots
43%
Learning & Development
33%
Workforce Planning & Analytics
30%
Performance Management
25%
Total Rewards
18%

AI in Total Rewards

Planning to explore 52%
Not engaged at all 36%
Early-stage pilots 11%
5 · The Country and Sector Divide

AI adoption in the GCC is not uniform. The divergence is widening.

The GCC is not a single AI market. UAE respondents show a higher rate of full-scale deployment — 20% already using AI across functions — and lower rates of inaction. Saudi Arabia has the largest absolute number of organizations in exploration or pilot mode, reflecting the scale of transformation underway across Vision 2030 sectors. Qatar, Oman, Bahrain, and Kuwait show more measured adoption profiles, though several respondents from these markets operate GCC-wide.

Technology and digital organizations are the clear leaders, with a majority already deploying AI across functions. Energy and utilities follow. Financial services, the most represented sector, presents a more cautious profile — most organizations remaining in pilot or exploration phases. Oil and gas present a different dynamic: despite significant data assets and a long history of advanced analytics, full-scale AI deployment remains limited.

Sector Deploying Piloting Exploring No Plans
Technology / Telco 60% 40% 0% 0%
Energy & Utilities 25% 38% 37% 0%
Retail / FMCG 15% 46% 39% 0%
Financial Services 13% 61% 22% 4%
Industrial / Manufacturing 14% 71% 0% 14%
Government 11% 56% 33% 0%
Oil & Gas 0% 50% 33% 17%
6 · The Governance Imperative

Cybersecurity and AI governance are becoming critical enablers of scale. Most GCC organizations are still building the structures required to manage them.

As AI adoption accelerates in the region, a parallel gap is emerging — one that is less visible than deployment metrics but equally critical: the ability to govern AI safely, securely, and responsibly.

Ownership remains concentrated within IT (59%) and executive leadership (45%), with limited board-level involvement (11%) and minimal engagement from HR (3%). This distribution might have enabled early momentum — driving tool adoption, experimentation, and initial deployment — but it is less suited to managing the broader implications of AI at scale.

As AI moves from isolated use cases into core business processes, governance becomes an operating discipline. Cybersecurity extends beyond protecting infrastructure to safeguarding data, monitoring AI behaviour, ensuring integrity of outputs, and preventing unintended consequences. The organizations that will lead in AI are not those that adopt fastest, but those that can scale responsibly, securely, and consistently.

Governance is an enabler of scale — not a constraint on it.

The accountability gap creates risk

Current operating models may not be sufficient to support scaled AI adoption. Structures that enable experimentation are not always designed for consistency, oversight, or enterprise-wide coordination. As adoption progresses, organizations will need to evolve their models.

Trust is an enabler of adoption

Organizations that can demonstrate clarity, reliability, and responsible use of AI will be better positioned to scale adoption, build stakeholder confidence, and differentiate over time. Governance and trust do not emerge from technology adoption organically — they are outcomes of leadership choices.

The GCC's Defining Test

Ambition and architecture are not the same thing.

The GCC's AI ambition is real, well-funded, and backed by national will. What our survey of 105 organizations reveals is that three-quarters of organizations are somewhere in the middle — piloting without scaling, exploring without committing, investing without a clear line to return. This is not a question of intent, but of organizational design — and it is well within reach to address.

The organizations in this survey that are furthest ahead did not wait for certainty before acting. They built governance structures with real accountability. They brought HR into the AI transformation as an equal partner, not a downstream recipient. Korn Ferry's global research is unambiguous on this point: CHROs who sit at the strategy table shaping AI decisions alongside the CEO and CTO are producing better outcomes than those who arrive after the decisions have been made. In the GCC, where HR currently holds formal AI accountability in only 3% of surveyed organizations, the opportunity to close that gap is significant and immediate.

The future of work in the GCC will not be determined by which region has the best AI tools. It will be determined by which organizations build the human infrastructure to deploy those tools with purpose — the governance, the talent architecture, the data foundations, and the rewards frameworks that make AI adoption stick. Leaders who start that work now, with the imperfect information they have today, will define the competitive landscape for the decade ahead.

The barriers to value

Technology is not the problem. Integration, talent and ROI clarity are.

Technology integration
61%
Talent gaps
44%
Unclear ROI
37%
Regulatory risk
26%
Leadership alignment
20%
Employee resistance
15%

% of respondents identifying this as their biggest challenge in capturing value from AI

The barriers are human and organizational — not technological.

Technology integration leads as the top barrier at 61% but look at what follows. Talent gaps at 44% and unclear ROI at 37% point to an enterprise that has the tools but lacks the people, skills, and measurement frameworks to convert them into outcomes. Leadership alignment — cited by one in five — signals that the missing middle is precisely that: the layer between boardroom strategy and platform capability where AI actually converts into value.

Only 1% of respondents claim to be "fully ready" to reskill or redeploy employees. 76% are not ready or only somewhat ready. This is the conversion gap in numbers.

Where you are today

You have done almost everything right. And you are still not seeing the return.

You have a strategy. You have a platform partner. You have a pilot portfolio, a steering committee, and — most likely — a Chief AI Officer who is still finding the edges of the role. You have spent real money. You have told the board a real story.

And when you look honestly at the P&L, the value you promised has not arrived at the scale you promised it.

You are not alone. It is not a failure of ambition, and it is not a failure of execution. It is structural. The structure has a shape, and the shape has never been drawn for you. Here is the first line of it.

Anthropic — the company building one of the frontier models your platform team is almost certainly evaluating — just published its latest read on where AI is actually landing in the economy. In the occupation family where AI is most mature (Computer & Math), the technology is now theoretically capable of supporting 94% of the tasks people do for a living. It is actually being used for 33% of them. Even at the leading edge, in the function that has had the most time with the most tools, two-thirds of the value is sitting on the shelf.

Tasks AI is theoretically capable of supporting (Computer & Math)
94%
↓ A 61-POINT GAP
Tasks AI is actually being used for today
33%

Anthropic Economic Index · Labor Market Impacts report · March 2026.

61 points. That is where your money is going.

And that is the best case — the function with the most fluent users, the most mature tooling, and the lowest friction. Now look at the rest of your enterprise: roles being reshaped, skills going stale in real time, leadership behaviors that worked last year already starting to fail. Every AI program that has underperformed — yours or your peers' — has underperformed in the same place. Not in the strategy. Not in the model. In the space between them. That space is what we call the missing middle, and once you can see it, you cannot unsee it.

The reframe

There is a layer of your company nobody can see whole. That is where the value is trapped — today and tomorrow.

Every organization we work with is having three AI conversations at once. In the boardroom, it is a conversation about risk: what this technology could do to our reputation, our people, our regulators, our brand. In the executive team, it is a conversation about strategy: where to place the bets, which functions, how fast, what to tell the street. In the platform and technology group, it is a conversation about tools: which models, which vendors, which copilots, which guardrails. Three real conversations, three necessary conversations — and not one of them is happening at the altitude where AI actually converts into value.

The Boardroom
The risk conversation. Reputation, regulation, the existential questions. Quarterly, cautious, appropriately abstract.
The Executive Team
The strategy conversation. Which bets, which functions, how fast, what percentage of revenue by when. Directional, ambitious, necessarily aggregate.
↓ The Missing Middle ↓
Responsibilities. Skills. Leadership behaviors.
The actual roles your people hold, the capabilities those roles now require, and the way leaders have to lead through them. The only layer where AI changes outcomes — for the value you are chasing today, and for the value you will need to create eighteen months from now.
The Platform Team
The tools conversation. Models, copilots, vendors, guardrails, tokens. Fast-moving, technical, measured in latency and cost.

Here is the part almost everyone gets wrong about this layer. It is not that nobody is looking at it. Your front-line managers look at it every single day — one team at a time. Your HR organization looks at it through job descriptions and competency models. Your learning team looks at it through course catalogs. Your operations leaders look at it through process maps. Every function has a view of this layer. What none of them has is the same view — and not one of them can see all three things that have to move together: the role itself, the skills inside it, and the behaviors it takes to lead through it.

And this is where the money goes. Your AI investment keeps converting in pockets and evaporating before it reaches the P&L. A team here gets a real lift. A leader over there quietly doubles her throughput. A front-line employee discovers a way of working that would be worth tens of millions if the rest of her function did it too. None of it scales — because no one is acting on all three layers at once. The job gets redrawn, but the skills don't catch up. The skills get built, but the leaders can't coach through the change. The leaders get developed, but the underlying job was never reshaped to begin with.

Your managers see their teams. HR sees the org chart. Learning sees the curriculum. IT sees the stack. Finance sees the ledger. None of them has a shared language for the role, the skills inside it, and the leadership behaviors required to run it. Until now, nobody had to.
Why this matters right now

Two things just became true in the same quarter. The role is changing faster than anyone can keep up with — and the way to convert that change into value finally exists.

For three years, the speed of the technology has outrun the speed of the enterprise. Models gained capabilities faster than any job description could name them, any competency model could teach to them, or any leadership framework could develop against them. The half-life of a role — and of the skills and behaviors inside it — collapsed from years to quarters. The gap between what AI could do and what your enterprise could actually do with it kept widening. That is the real reason your pilots haven't scaled. It is not that your people are slow. It is that nothing has been able to convert the capability into the operation at scale.

In the last six months, the curve started to bend. Adoption at the task level is no longer a rounding error — it is becoming the default. And for the first time, there is a way to move with it: a thirty-year body of structured intelligence on what roles, leaders, and skills actually require — and a method built on top of it for converting AI capability into enterprise value at the layer where value is created.

36%
of jobs now use AI for 25%+ of their day-to-day tasks — but usage is wildly uneven inside a single title
Anthropic Economic Index, Mar 2026
900M
weekly active users of ChatGPT — the fastest-adopted workplace tool in history; your people already have it
OpenAI, Feb 2026
<40%
of organizations that deployed AI have scaled it beyond pilot, even as 88% use it in at least one function
Stanford HAI AI Index, 2025
11
responsibilities account for roughly half of total GenAI impact across the modern enterprise
Korn Ferry Institute, Q1 2026

Read those four numbers together and the shape of the problem is unmistakable. The tool is already in your people's hands. Most of your peers are stuck in pilot. The action is no longer at the level of the job title — it is at the level of the role, the skills inside it, and the behaviors required to lead through it. And when you look at the enterprise at that altitude, the opportunity is not scattered across thousands of micro use cases. It is concentrated.

This is the moment Korn Ferry has been unintentionally preparing for. For more than thirty years we have been quietly building the exact engine the missing middle now requires: structured intelligence on what roles actually require, what makes a leader able to run them, and what skills and behaviors people need to perform them. That is what our Success Profile library is. Eleven thousand structured descriptions, in every function, in every industry, in every geography — built in a single shared language that no one else has, and no one else can build quickly.

In early 2026, our Institute began attaching an AI Impact Score to each responsibility in that library. The first wave result was striking. Eleven responsibilities — across every function, every industry, every geography — carry roughly half of the total GenAI impact potential in the modern enterprise. Eleven. Half the opportunity. That is how concentrated the missing middle actually is.

Source: Korn Ferry Institute, Responsibility-Level AI Impact Score · V1 findings · Q1 2026.

What to do about it

There are only three ways to act on the missing middle. We would do all three, in this order.

Once you accept that conversion is the work — not strategy, not tools, not transformation theater — the shape of the program changes. Three moves become unavoidable. Each one converts a different layer of the missing middle. Together, they are how the gap actually closes.

MOVE 01
Redraw the work that drives your P&L

AI Impact & Job Design

Take the roles that matter most to your business and redraw them around what AI is actually changing — what the role is for, what humans should own, what the model should carry, and where the handoff lives. Concentrate the effort where the impact is concentrated. Stop pretending the rest is moving when it isn't.

  • A clear picture of the roles that drive your value, fit for the AI era
  • A defensible workforce plan — not a headcount exercise
  • Decisions on which roles to invest in, which to redesign, which to retire
MOVE 02
Find the leaders who can carry it

AI-Ready Leader Assessment

Redrawn work does not run itself. It runs through leaders who can sustain a vision through ambiguity, take decisive action when the data is incomplete, scale what works, and coach their teams through the fear of their own jobs changing. That is a harder standard than the one most leadership models are built on — and one we have spent decades measuring.

  • An honest read on which leaders are ready, which are close, which are not
  • Grounded in the competencies, traits and behavioral drivers we have validated in millions of leaders
  • A bench plan you can act on this quarter
MOVE 03
Unlock the people you already have

AI Upskilling, in the Flow

Your people already have the tool. What they need is permission, confidence, and capability to use it on the moments that matter most in their job — and the leaders around them ready to coach through the change instead of waiting it out. This is capability built at the point of use: in the flow of the day, on the work where AI actually changes outcomes.

  • Confidence and capability in the moments that matter — not a course catalog
  • Measured in how people behave on Wednesday, not how many modules they completed
  • Compounds with every function we run it through — the next one costs less and lands faster

The thread that connects the three

All three moves act on the same three layers at once: the role, the leader, and the skills and behaviors inside both. Redraw the role. Find the leader who can carry it. Build the skills and behaviors that let the team perform it differently — for the value you need now, and for the roles that don't exist on your org chart yet. There is no other sequence that actually closes the gap.

Why these are the only three

Every other AI investment you have made sits either above the responsibility (strategy, governance) or below it (models, copilots, data). The responsibility itself has no owner, no framework, and no measurement system inside your company today. These three moves give it all three.

Why Korn Ferry, and why now

This is not a new skill for us. It is the one we have been quietly building for thirty years.

Korn Ferry has spent three decades doing what almost no one else in professional services has done at scale: describing what makes a role work, what makes a leader succeed, and what makes a person thrive — inside real companies, in the same language, across every industry and geography in the world.

That work has produced three things almost nobody else has, and nobody else has them together. Eleven thousand Success Profiles for the roles that run the modern enterprise. The world's largest validated library of leadership competencies, traits and behavioral drivers, built from millions of leader assessments. Reward and workforce data on more than twenty million employees. It was built for a pre-AI world. It just happens to be exactly what this moment demands.

And it is not just a library. It is a global bench of organizational psychologists, leadership advisors, reward strategists and learning architects who have spent careers turning that intelligence into decisions companies actually make. The library tells you what to do. The bench helps you do it.

What this gives you that nobody else can

A pre-built picture of the work, the leaders and the capabilities that run your business — calibrated against thirty years of evidence, not invented over a nine-month discovery.

An objective view of your leaders against a standard built for the AI era — grounded in the competencies, traits and behaviors we have spent decades validating.

A bench of practitioners who sit beside your team and turn the redesign into decisions you actually make this quarter — not stranded PowerPoint.

Other firms can give you a deck. We can give you redrawn work, the leaders who can carry it, the capability underneath them — and the people who have done it before.
The promise

Convert one function in a quarter. Build the blueprint for the rest.

Pick one function. Let us redraw the work, build the skills and behaviors underneath it, and ready the leaders who run it — together, in sequence, on the roles that actually move your P&L. Within ninety days, you will see real movement in the operation, not in a pilot. This is a CEO-sponsored, CHRO-led, CAIO-partnered play. It only works when all three seats are in the room.

We are not going to quote you a value multiple on a page. What we will tell you is what we see in the functions where this three-layer work has already been done: pilots stop being pilots, the 94-to-33 gap starts closing in weeks rather than quarters, and the investment you make in the first function becomes reusable architecture on every function after it.





Sources
  • Korn Ferry, HR & AI Adoption Survey in the GCC
  • Korn Ferry, Global Total Rewards Pulse Survey — AI Impact on Roles and Compensation, N = 4,252 organizations across 133 countries, February 2026
  • Korn Ferry Institute, Responsibility-Level AI Impact Score — V1 Findings, Q1 2026
  • Korn Ferry Success Profile Library (11,000+ profiles) and Global Reward dataset
  • Anthropic Economic Index, Labor Market Impacts, March 2026
  • OpenAI, Weekly Active User and Enterprise Adoption disclosure, February 2026
  • Stanford HAI, AI Index Report, 2025 and 2026 updates
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