Saudi Arabia Artificial Intelligence Ai Regulatory Affairs Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market valued at USD 1.1 billion, driven by Vision 2030, AI adoption in healthcare, finance, and manufacturing for enhanced compliance.

The Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of AI technologies across healthcare, finance, and manufacturing, as organizations seek to enhance operational efficiency and compliance with evolving regulatory standards. The market is further propelled by government investments in digital transformation and AI infrastructure under Vision 2030, which has led to rapid expansion of AI-driven compliance solutions and regulatory intelligence platforms.

Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to robust digital infrastructure, strong government support for technological advancement, and the presence of major corporations and AI-focused startups. These cities serve as hubs for innovation and investment, attracting both local and international players in the AI regulatory landscape. Riyadh, in particular, hosts the majority of hyperscale data centers and regulatory technology deployments.

The National Strategy for Data and Artificial Intelligence (NSDAI), issued by the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2023, establishes a comprehensive regulatory framework for AI. The NSDAI mandates operational guidelines for data usage, privacy, and ethical AI deployment across sectors, requiring organizations to comply with data governance standards, sector-specific licensing, and periodic audits to ensure responsible AI adoption.

Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market Segmentation

By Component:

The market is segmented into Software/Platforms and Services. The Software/Platforms segment leads, driven by the rising demand for AI-powered compliance management, regulatory intelligence, and automated document management solutions. Services - including consulting, implementation, and managed services - remain significant as organizations seek expert guidance for regulatory strategy, technology integration, and ongoing compliance in a rapidly evolving regulatory environment.

By Deployment Mode:

The market is divided into Cloud-based and On-premises deployment modes. The Cloud-based segment dominates, supported by its scalability, cost-effectiveness, and rapid deployment capabilities, enabling organizations to leverage AI regulatory solutions with minimal infrastructure investment. On-premises solutions are preferred by enterprises with strict data residency and security requirements, particularly in government and defense sectors.

Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market Competitive Landscape

The Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Data and Artificial Intelligence Authority (SDAIA), IBM Saudi Arabia, Oracle Saudi Arabia, Amazon Web Services (AWS) Saudi Arabia, Microsoft Saudi Arabia, Google Cloud Saudi Arabia, Accenture Saudi Arabia, Deloitte Saudi Arabia, PwC Saudi Arabia, EY Saudi Arabia, KPMG Saudi Arabia, SAP Saudi Arabia, Advanced Micro Devices (AMD), Intel Corporation, and Omdena Inc. contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market Industry Analysis

Growth Drivers

Increasing Government Investment in AI:

The Saudi government allocated approximately SAR 20 billion (USD 5.3 billion) for AI initiatives in future, reflecting a commitment to enhance technological infrastructure. This investment aims to support the Vision 2030 initiative, which emphasizes diversifying the economy and reducing dependence on oil. The establishment of the National Center for Artificial Intelligence further underscores this drive, positioning Saudi Arabia as a regional leader in AI development and regulatory frameworks.

Rising Demand for Automation in Various Sectors:

Automation is projected to increase productivity across sectors such as manufacturing, healthcare, and logistics, with an estimated contribution of SAR 50 billion (USD 13.3 billion) to the GDP in future. The push for efficiency and cost reduction is driving businesses to adopt AI solutions, leading to a surge in demand for regulatory frameworks that ensure compliance and ethical use of AI technologies in these sectors.

Enhanced Data Privacy Regulations:

In future, Saudi Arabia is expected to implement stricter data protection laws, aligning with global standards such as GDPR. This regulatory shift is anticipated to affect over 70% of businesses that handle personal data, necessitating compliance with new AI regulations. The focus on data privacy is expected to foster consumer trust and encourage the adoption of AI technologies, thereby driving market growth in the regulatory affairs sector.

Market Challenges

Lack of Skilled Workforce:

The AI sector in Saudi Arabia faces a significant skills gap, with an estimated shortage of 30,000 qualified professionals in future. This shortage hampers the effective implementation of AI technologies and regulatory compliance. Educational institutions are struggling to keep pace with the rapid technological advancements, leading to a reliance on foreign talent, which can complicate regulatory affairs and increase operational costs for local firms.

Regulatory Uncertainty:

The evolving nature of AI technologies creates a landscape of regulatory uncertainty, with businesses unsure of compliance requirements. In future, approximately 60% of companies reported concerns regarding the clarity of AI regulations. This uncertainty can lead to hesitance in investment and innovation, as firms may delay AI adoption until clearer guidelines are established, potentially stifling growth in the regulatory affairs market.

Saudi Arabia Artificial Intelligence (AI) Regulatory Affairs Market Future Outlook

The future of the Saudi Arabia AI regulatory affairs market appears promising, driven by ongoing government initiatives and increasing public awareness of AI benefits. As the National AI Strategy unfolds, we can expect enhanced collaboration between public and private sectors, fostering innovation. Additionally, the integration of AI in regulatory compliance will likely streamline processes, making it easier for businesses to adhere to new laws. This evolving landscape will create a fertile ground for growth and development in the regulatory framework surrounding AI technologies.

Market Opportunities

Expansion of AI in Healthcare:

The healthcare sector is projected to invest SAR 10 billion (USD 2.67 billion) in AI technologies in future, focusing on diagnostics and patient management. This investment presents a significant opportunity for regulatory frameworks to ensure ethical AI use, enhancing patient safety and data privacy while driving innovation in healthcare solutions.

Development of Smart Cities:

The Saudi government plans to invest SAR 50 billion (USD 13.3 billion) in smart city projects in future, integrating AI for urban management. This initiative opens avenues for regulatory bodies to establish guidelines that govern AI applications in public services, transportation, and infrastructure, ensuring sustainable and efficient urban development.