< Previous10 CEO MIDDLE EAST APRIL 2024 s leaders convened at the World Government Summit last February, the discourse on artificial intelligence (AI) echoed with both hope and worry at the impact of the technology on the future of work, education, and governance. In the MENA region, the potential impact of AI is profound, with fore- casts by PwC suggesting a staggering $320bn potential boost to the Mid- dle East economy by 2030. In relative terms, the UAE is poised to witness the largest impact, with close to 14 percent of its annual GDP in 2030 projected to be influenced by AI, while Saudi Arabia is anticipated to gain the most in absolute terms, with an estimated annual $135bn added to its economy in the same year. This underscores the critical role AI is set to play in shaping facilitating seamless interactions and unlocking new possibilities. Break- throughs in image generation promise to democratise content creation, allowing for much faster and easier generation of immersive 3D content and recreation of physical objects in VR and AR. However, with great innovation comes great responsibility. Meta has long championed open innovation in AI, releasing more than 1,000 open- source AI projects to date. Meta’s Llama II model has been recognised as the most transparent by the Stanford Foundation Model Transparency Index in 2023. We released information about the deci- sions we made in building Llama 2 and resources to help developers build with Llama 2 responsibly, including: ● A research paper with more details about our approach to safety improve- ments, fine-tuning, and red teaming. ● A model card with details includ- ing the safety tests we’ve run and safety measures we’ve built into the model. ● A responsible use guide that helps support developers with best practices for responsible development and safety evaluations. We believe that collaboration lies at the heart of responsible AI development. Meta actively engages with govern- ments, industry partners, academia, and civil society to establish common stand- ards and governance frameworks. As we navigate the complexities of AI advance- ment, it is imperative that governments work together to set common standards and governance models. By leveraging existing laws and regulations and adopt- ing a tech-neutral approach, we can promote trustworthy AI while laying the groundwork for continued innovation. The MENA region stands on the cusp of a transformative AI-driven future. By embracing the three pillars of innovation, transparency, and responsi- bility, we can harness the full potential of AI to drive inclusive growth and em- power communities across the region. Unpacking the three key pillars in the MENA region’s AI advancement INNOVATION, TRANSPARENCY AND RESPONSIBILITY Ammari believes the MENA region stands on the cusp of a transformative AI-driven future BY BASMA AMMARI, META’S DIRECTOR OF PUBLIC POLICY FOR MENA A TECHNOLOGY our collective future, with expected an- nual growth in the contribution of this tech across the region ranging from 20 percent to 34 percent. At Meta, we recognise AI as a corner- stone of our platforms, driving innova- tion and connectivity in unprecedented ways. AI powers ranking and recom- mendation systems across our apps, with approximately 40 percent of content on Instagram being surfaced through AI-driven recommendations. Our focus is advancing state-of-the-art AI through open research for the benefit of all, which we are achieving through initiatives like FAIR and our open-source models. As we journey towards the metaverse, AI remains critical to realising our vision of immersive digital experi- ences. From Quest 3 to smart glasses, AI underpins our hardware innovations, The biggest interviews The best commentary Subscriber exclusives Dedicated newsletters Join the community Unlimited access to12 CEO MIDDLE EAST APRIL 2024 n the recent years, the global financial sector has under- gone a significant transfor- mation making it more intricate. As the industry continues to evolve, it is currently confronting a compelling need to boost efficiency, security and customer satisfaction. This has driven industry players to push boundaries of technological innovation and integra- tion to meet growing demands. Currently, fintech businesses are revolutionising traditional banking and financial services in a remarkable The fintech sector has been at the forefront of facilitating sustainable development in the Middle East and North Africa region, offering substantial opportunities for expansion and innovation IDENTIFYING ‘SWEET SPOT’ IN THE FINTECH MARKET Integrating artificial intelligence (AI), machine learning and encryption plays a vital role in the efforts to enhance the efficiency of financial processes BY STIVEN MUCCIOLI, FOUNDER AND CEO OF BKN301 I TECHNOLOGYTECHNOLOGY APRIL 2024 CEO MIDDLE EAST 13 manner. The fintech sector has been at the forefront of facilitating sustainable development in the Middle East and North Africa (MENA) region, offering substantial opportunities for expansion and innovation. However, in order to thrive in this intricate and constantly changing sector, achieving the ‘sweet spot’ is the ultimate quest. It can be at- tained only when innovation seamless- ly merges with regulatory compliance, further prioritising user experience and benefits exceed the costs. In the pursuit of this equilibrium, several key ele- ments come into play, each essential in crafting a successful fintech landscape that caters to both users and financial service providers alike. Amidst these efforts, it is vital to remember that the backbone of any fintech revolution lies in its technologi- cal prowess. The fintech industry is one of the most advanced industries, where large number of companies are combin- ing innovative technologies with strong security protocols. Integrating artificial intelligence (AI), machine learning and encryption also plays a vital role in the efforts to enhance the efficiency of financial processes without sacrificing data integrity and transaction security. By striking the right balance, us- ers can benefit from state-of-the-art technologies and stay confident on the confidentiality of their financial infor- mation. Fintech industry players are continuously pushing their limits and using new technologies to improve services. By integrating advanced technologies, fintech platforms can stay agile in the overly crowded market. At present, fintech systems seek to blend in with users’ everyday life as smoothly as possible by providing time-saving and convenient solutions. Financial tools contribute to the ideal intersec- tion where users experience maximum satisfaction and confidence in their selected fintech services when they function precisely and offer results quickly and accurately. Although the industry is prosper- ing as a result of its concerted efforts to embrace innovation, compliance with regulations is still essential. Many countries in the MENA region require fintech companies to obtain licenses or permits from appropriate regulatory entities before entering the marketplace. Authorities such as central banks, financial regulatory agencies or other governmental bod- ies may grant the license. For example, the UAE requires fintech enterprises to obtain licenses from either Abu Dhabi Global Mar- kets or the Dubai Financial Ser- vices Authority. As for Saudi Arabia, companies need to apply to the Saudi Arabian Monetary Authority (SAMA) for a sandbox license. The ‘sweet spot’ in this realm is innovating solutions while adhering to the existing laws, thus fostering an environment of trust and reliability. According to industry studies, digital financial solutions that are made available to a wide range of users, including those with low technological or financial literacy, are what consti- tute the fintech ‘sweet spot.’ Furthermore, the ‘sweet spot’ is achieved when costs of digital solutions are justified by the tangible benefits gained by users. Fintech solutions become an essential component of customers’ financial journeys when they strike the correct balance, which can be achieved through low fees, ac- cess to previously unavailable financial services or novel financial products. In the fintech industry, the search for the ‘sweet spot’ is a broad strategy in which factors including innovation, technology, user experience and regu- latory compliance play a key role. Current market trends and industry reports indicate that the fintech com- panies that are able to maintain this delicate balance will not only thrive in the long run but will also be leading forces in the development of finance. In the current digital era, custom- ers expect simple and effective financial solutions that ensure enhanced level of ease. The financial market is favour- able to those fintech companies that put in extra efforts to ensure user-friendly interfaces and efficient onboarding pro- cedures. Furthermore, current market trends indicate that fintech platforms that enable users to handle finances freely and with little effort gain more attraction from users. Fintech companies that recognise the value of ease-of-use place themselves in a favourable position where users can easily access their financial data, make transactions and keep an eye on their assets. The ability to simplify complex financial processes significantly enhances user experiences. “BY INTEGRATING ADVANCED TECHNOLOGIES, FINTECH PLATFORMS CAN STAY AGILE IN THE OVERLY CROWDED MARKET” The backbone of any fintech revolution lies in its technological prowess, according to Muccioli14 CEO MIDDLE EAST APRIL 2024 lthough Artificial Intelligence (AI) has been around for more than 60 years, we are still at the discovery phase when it comes to generative AI. Its speed and efficiency have the potential to act as a co-pilot to our work and can boost workplace productivity in areas where automation has previously been minimal. However, this innovative tool is not without its pitfalls. As organisa- tions race to embrace AI’s potential, the rush to adopt such powerful tools can lead to unintended consequences that may undermine the very benefits they seek to gain. By understanding and addressing these challenges, leaders can pave the way for a future where AI enhances the workplace rather than detracts from it. Let’s look at some common pitfalls for leaders to avoid in the workplace: Pitfall #1: Data privacy Last year, more than a thousand technology leaders (including Elon Musk and Steve Wozniak amongst others), called for a moratorium on AI development to prepare the regulatory landscape. Recently, there have also been several key legal challenges to AI developers on multiple Intellectual Property infringements during the establishment of training databases. As a result, we are in an interesting space where users are still experiencing the hype around AI applications, while simultaneously becoming more mature in their concerns about its ethical use. Leaders need to be more open about the use of AI at work and any potential future regulations that may require certification and declaration of usage. At The Talent Enterprise, we have received client requests to ensure that no AI tools will be used in our assessment protocols at all, while other clients are keen for us to lead AI appli- cations in talent in their organisations. Building greater trust with the team in a period of transformation is key and investing time to commu- Leaders need to be more open about the use of A.I. at work and any potential future regulations that may require certification and declaration of usage FIVE PITFALLS TO AVOID WHEN USING A.I. IN THE WORKPLACE Businesses must strike a balance by incorporating AI as a tool to assist rather than replace human decision-making BY DAVID JONES, FOUNDER AND CEO OF THE TALENT ENTERPRISE A TECHNOLOGYTECHNOLOGY APRIL 2024 CEO MIDDLE EAST 15 nicate openly, balancing plans with any potential risks, will minimise the chances for any potential backlash. Pitfall #2: Prone to mistakes Currently, AI applications are, at best, limited, mediocre and prone to mis- takes. These mistakes can range from minor inconveniences to significant operational disruptions, financial losses, or even harm to an organisation’s rep- utation. At this stage of the hype-cycle, the rush to deploy AI has arguably reduced the quality of outputs. To address this, organisations must make use of comprehensive, high- quality data that is regularly updated to reflect new information. Secondly, organisations should allow for a human oversight mechanism, where AI-made decisions can be reviewed and over- ridden if necessary. This way AI acts as a reliable tool that supports workplace efficiency and effectiveness. Pitfall #3: Furthering bias and discrimination Ask ChatGPT4 to create an image for a CEO, CFO, lawyer, doctor, presi- dent, prime minister, etc. and you will be delivered a distinctly male, pale and stale image because the data it was “trained” on is based on a fixed, outdated sample. As we continue to develop more workplace applications, we must avoid the risk of preserving our organisa- tions in the current imperfect state in which we find them. Organisations need to diversify and de-bias their data, possibly by enriching existing datasets or reworking algorithms to remove bias. Additionally, compa- nies can conduct regular audits of AI applications to identify and address any sources of bias. These measures will enable businesses to harness AI effectively, while promoting a more inclusive and fairer workplace. Pitfall #4: Loss of human touch As we introduce AI into our work, counteract this loss of human touch, businesses must strike a balance by incorporating AI as a tool to assist rather than replace human decision- making altogether. Pitfall #5: Job displacement for entry level roles Looking ahead, the risk of negative impacts for career paths and advance- ment opportunities are concerning. Let’s stick with the banking industry as an example, where people tradi- tionally started as tellers and gained essential skills before progressing into more technical and senior roles. With automation poised to eliminate many entry-level, routine jobs - not only in banking but across all sectors - young and inexperienced profession- als face the potential loss of critical career launchpads. I am confident the “lump of labour” fallacy will prevail, which states that as overall productivity increases, so will the total amount of employment and economic activity. However, it is dif- ficult to find research which indicates the size and shape of new job creation. For those entering the workforce, or- ganisations can consider creating new roles that leverage human capabilities in areas where AI falls short, such as emotional intelligence, creativity and strategic thinking. Leaders can equip individuals with the skills needed to work alongside AI, which can mitigate the impact of job displacement. It is too soon to determine how AI will affect the future of working, other than to say with confidence that it will have a fundamental and far-reaching impact - this genie will not be going back into the bot- tle. Just as the choices we made (or didn’t make!) about the regulation of the internet determined whether it stayed an “open” resource or became a privatised corporate domain, similarly our choices with the use and misuse of AI will affect lives – in general and professionally - going forward. there is a risk that we dehumanise our workplaces to the detriment of our colleagues and customers. For instance, the widespread implementation of AI chatbots in the consumer banking industry has reduced costs, increased profitability, and offers customers ac- cess to services 24/7. However, a dec- ade ago, local bank branches had staff who knew us personally and guided us through complex bureaucracy to solve our financial issues, without us need- ing to undertake additional “shadow labour” as customers. Just like generative AI, modern workplaces are human constructs, and our experience of work remains a key part of each of our identities. Rushing into automation can accelerate the potential for alienation, disengage- ment, frustration and withdrawal. To “ORGANISATIONS CAN CONSIDER CREATING NEW ROLES THAT LEVERAGE HUMAN CAPABILITIES IN AREAS WHERE AI FALLS SHORT” The rush to adopt powerful technology tools can lead to unintended consequences, Jones cautions16 CEO MIDDLE EAST APRIL 2024 n today’s economic landscape, while small businesses often take centre stage, the signifi- cance of middle-market companies, or growth corporates, cannot be overstat- ed. These entities, typically with annual revenues between $50m and $1bn, play a crucial role in driving economic growth, job creation, and supply chain development across Central and Eastern Europe, the Middle East, and Africa (CEMEA). A recent report on Growth Cor- porates Working Capital Index for the period of 2023-2024, which included interviews with 850 CFOs across 23 countries and various industries, shed- ding light on the challenges and op- portunities these companies encounter. One notable finding from the re- port is the 30 percent global increase in the adoption of diverse working capital solutions by growth corporates, result- ing in significant cost savings averag- ing $3.3m annually through strategic investments. However, the region presents unique trends and challenges: 1. Strategic utilisation of work- ing capital solutions: Over a third of growth corporates rely on external working capital solutions primarily for emergency purposes. This trend indicates a significant opportunity gap. A strategic shift from using these tools reactively to proactively can offer sub- stantial benefits. Evidence suggests that CFOs who employ working capital solutions strategically are 67 percent more likely to improve their DPO (Days Payable Outstanding), a critical financial efficiency metric. 2. Adoption of virtual card solu- tions: The region is poised for a marked increase in the adoption of virtual card solutions. This trend is reflective of the region’s burgeoning digital innovation landscape and an increasing prefer- ence for digital, contactless payment solutions. Virtual cards offer benefits like improved transaction security, enhanced spending oversight, and more The global landscape continues to evolve, writes Shahebaz Khan, SVP, Head of Commercial and Money Movement Solutions for Visa CEMEA UNVEILING THE REGION’S TOP 5 WORKING CAPITAL TRENDS THROUGH C.F.O. INSIGHTS Khans says the evolution of B2B payments towards consumer-orientated models is set to continue I OUTLOOKOUTLOOK APRIL 2024 CEO MIDDLE EAST 17 streamlined expense management, aligning with the region’s push towards digital transformation in finance. 3. Diverse range of advisory preferences: There’s a notable reliance on working capital consultants, with 40 percent preferring their expertise over other advisory services. This preference surpasses that of European and North American counterparts. Furthermore, 31 percent of CFOs in the region favour fintech providers, drawn by the ease of onboarding and access to innovative funding solutions. This trend under- scores a growing confidence in spe- cialized financial advisory services and fintech innovations within the region. 4. Emerging focus on supply chain financing: There’s a grow- ing interest in supply chain financing solutions in the region. This interest is driven by the need to enhance liquidity and strengthen supply chain resil- ience, particularly in sectors impacted by global disruptions. Companies are exploring innovative financing models that can provide more flexible payment terms to suppliers while optimising their own working capital. 5. Challenges in financial tool adoption: Despite these positive trends, the region faces challenges in adopting financial tools like invoice financing and corporate credit cards. Prevailing misconceptions view the use of working capital solutions as an indicator of inefficient management, limiting access to these tools for a sig- nificant portion of growth corporates. At a global level, the commercial payments future is being shaped by five key trends: 1. Automation and digitisa- tion: The evolution of B2B payments towards consumer-orientated models is set to continue, with innovation ramp- ing up to meet heightened business expectations of cost-efficient, digital- first, and rapid payment solutions. The ongoing automation of payments and receivables processes will be a pivotal 4. Artificial Intelligence: Genera- tive AI is unlocking new opportunities to streamline operations and deepen customer engagement. However, risk identification and fraud mitigation re- main pivotal considerations, and strik- ing a balance between innovation and security will be critical for businesses adopting AI technologies. 5. Global money movement: Supply chain disruption has driven a surge in cross-border commerce, and businesses are increasingly reliant on rapid, transparent and globally ac- cessible payments to increase supply chain resilience. The WCI report predicts a rise in digital payment solutions adoption by growth corporate CFOs, improving cash flow management and integration of buyer-supplier payments. Looking ahead, growth corporate CFOs express optimism, with many planning to increase their use of work- ing capital solutions, emphasising the importance of innovation and partner- ship among service providers. Generative AI is unlocking new opportunities to streamline operations and deepen customer engagement $226.5bn The estimated size of the digital payments market in the MENA region in 2024, according to an analysis by Mordor Intelligence driver towards digitisation. 2. Embedded finance: In tandem with the growth in automation and dig- itisation, businesses are also anticipating greater integration of financial services into their existing workflows. Major digital players are rolling out compre- hensive solutions for SMBs – one-stop shops that cater to diverse financial needs. 3. Demand for working capital: An environment of rising rates has seen the working capital landscape undergo a strategic shift, with a renewed focus on cost reduction and operational effi- ciency, with an emphasis on refining the cash conversion cycle – a reshaping of the working capital value proposition. COVER STORY SAMUEL SABA “THE MAIN THING THAT DISTINGUISHES US FROM OTHER COMPANIES IN THE REGION IS OUR KNOWLEDGE OF THE MARKET AND OUR DEEP UNDERSTANDING OF THE BUSINESS” 18 CEO MIDDLE EAST APRIL 2024APRIL 2024 CEO MIDDLE EAST 19 DEVELOPING THE FUTURE Samuel Saba, Chairman, Infinity Group, reveals the firm’s plans for the near future COVER STORY ow was Infinity Group started? Infinity Group came to be af- ter consolidating, and rebranding all of the different already existing operating companies in the group. These entities were initially set up by our father, who got into the world of business over 35 years ago and who has very recently retired, and now takes a less active role as an advisor. The group is currently being run by myself, and my siblings who worked very closely under our father and as a result managed to learn from his lifetime of experience in doing international business. Infinity Group would not be where it is today if it were not for his leadership, guid- ance and lifetime of hard work. Our goal was to set up what would come to be a one-stop shop to service at projects from a much more holis- tic point of view while also focusing heavily on relationships. To sum it up, if you are a developer in Dubai; we design, build, manage, and sell for you. Shifting an emphasis from quantity to quality of relation- ship. We come to understand what our clients look for in much further detail, and as we look to cross-sell the different services that we provide we make sure not to compromise on the quality of work that is being done by any of our entities. Operating in these different sectors allows us to have unique insight that other service providers may not necessarily have while we work hand in hand together with developers from project inception to completion where we help manage their assets and ensure that their customers are left with a posi- H all of the different property devel- opers in Dubai and their respective needs. We saw that some of the largest revenues in Dubai were all directed to the real estate sector, and it only made sense for us to try to help service the market. Today, we have put a focus primarily on international property development projects in Zanzibar, and have done redevelopment projects in Dubai and Ras Al Khaimah. What is your competitive advantage in a market like Dubai? Dubai is definitely one of the most competitive markets in the world, and I think that the main thing that distinguishes us from other companies in the region is our knowledge of the market and our deep understanding of the business, which allows us to look Next >