A new report by the International Labour Organization, in collaboration with the Kuwait Chamber of Commerce and Industry, examines how private sector enterprises in Kuwait are adopting artificial intelligence (AI) and whether this adoption is leading to measurable productivity gains. The study, based on interviews conducted in 2025 and validated with KCCI, was finalized in January 2026.
The report finds that AI is already widely used in many firms, primarily in support functions such as document processing, customer interactions, forecasting, and anomaly detection. More comprehensive, enterprise-wide AI systems are mostly found in larger and digitally mature companies.
Enterprises apply AI mainly to automate administrative tasks, support analytical decision-making, and enhance customer services. While initial adoption often involves stand-alone tools, more advanced users integrate machine learning into existing data systems. Success depends less on access to AI tools and more on data readiness and organizational capacity.
Economic motivations are a strong driver of AI adoption. In the survey, 93 per cent of firms cited cost reduction and faster execution as key incentives, while 78 per cent aimed for strategic differentiation. Despite this, the ability to scale AI solutions across operations remains uneven.
The report highlights a notable size gap between firms. Forty-five per cent of large companies have formal AI policies compared with 14 per cent of small and medium-sized enterprises. Similarly, 65 per cent of large firms offer AI training programs, while only 29 per cent of smaller firms do.
The distinction between perceived and verified productivity gains is significant. While many firms report faster task execution, only 26 per cent of reported productivity improvements met the study’s verification criteria. In documented cases, firms recorded reductions of 60 to 98 per cent in task time for specific workflows.
The findings indicate that strengthening data systems, workforce skills, and governance frameworks will be critical to ensuring that AI adoption delivers measurable and inclusive productivity growth across Kuwait’s private sector.
