Entrepreneurs in Qatar see artificial intelligence (AI) as essential for supporting new businesses, according to a recent report launched by Qatar Development Bank (QDB), in collaboration with the Global Entrepreneurship Monitor (GEM).
According to the ‘Global Entrepreneurship Monitor – Qatar National Report 2024/2025’, AI plays a significant role in supporting Total Early-stage Entrepreneurial Activity (TEA) in Qatar.
According to the report, a notable trend observed in 2024 was the growing willingness of entrepreneurs to adopt new technologies. The report stated that “81.0%” of early-stage entrepreneurs plan to embrace and integrate new technologies into their business practices, compared to “61.6%” of established businesses (EB).
“For the first time, AI adoption was measured, revealing that 38% of EB consider AI critical in their strategies and business models, placing Qatar 11th globally among TEA and 15th in EB. AI integration has facilitated innovative products and services, boosted productivity and efficiency, and driven revenue growth and business expansion for both TEA and EB,” stated the report.
On innovative product and service development, the report pointed out that “71.8%” of early-stage entrepreneurs reported that AI helps drive creativity and differentiation in their offerings.
A 2024 survey by GEM asked business owners to evaluate the potential impacts of implementing AI in their businesses.
“Respondents were asked to rate potential impacts of AI adoption, choosing from ‘high impact’, ‘low impact’, or ‘no impact’. Through this new question, GEM aims to understand how business owners perceive AI’s influence on various aspects of their operations and identify areas where AI could contribute to business growth and efficiency.
“For TEA businesses, the most notable benefit of AI is innovative product and service development (71.8% reported impact), indicating that early-stage entrepreneurs are leveraging AI to drive creativity and differentiation in their offerings,” the report explained.
In terms of revenue growth and business expansion, “65.1%” of early-stage entrepreneurs credit AI with fostering competitive advantage and scalability.
The report stated, “AI is also seen to significantly enhance productivity and operational efficiency for 67.5% of TEA, while increasing revenue and supporting business growth for 65.1%, highlighting AI’s role in fostering competitive advantage and scalability.”
Similarly, EB attribute AI implementation with innovative product and service development by “63.7%” of the respondents, “but to a lesser degree than in TEA.”
“Improved productivity and efficiency (58.4%) also underscores AI’s effectiveness in optimising operations for established businesses, albeit with slightly lower impact rates than seen in TEA, likely due to established firms facing more structured processes and market positioning. Enhanced personalisation for customers is recognised as a significant benefit, with 55.9% of TEA and 49.2% of EB businesses observing impacts,” the report noted.
However, early-stage entrepreneurs and EB expressed concerns about AI “to varying extents.” The report stated that “42.6%” of EB and “35.8%” of TEA view data security and privacy concerns as significant issues.
“Additionally, increased costs and implementation challenges affect 41.4% of EB and 37.5% of TEA, indicating that both early-stage and established businesses see financial and logistical challenges as potential deterrents to AI adoption,” the report stated.
It also stated, “For EB, ethical dilemmas in AI decision-making pose a concern for 41.5%, compared to 35.6% in TEA, possibly reflecting EB’s broader responsibility toward existing customer bases and regulatory compliance.
“Furthermore, customer resistance or mistrust of AI impacts 41.0% of EB, compared to 32.1% in TEA. Resistance to AI among employees is more pronounced in TEA (30.4%) than in EB (27.0%).”
The report also noted that “55.9%” of early-stage entrepreneurs recognise AI’s role in improving customer engagement through personalised experiences, and “39.5%” of early-stage entrepreneurs consider AI critical for implementing their business models and strategies in the next three years.
