AI adoption shapes productivity in Kuwait

Kuwait City (ILO News) – A new International Labour Organization report in collaboration with the Kuwait Chamber of Commerce and Industry (KCCI) examines how enterprises in Kuwait’s private sector are adopting artificial intelligence and whether this is translating into measurable productivity gains.

Titled Adoption of Artificial Intelligence and Productivity Growth in Kuwait’s Private Sector, the study is based on enterprise interviews conducted in 2025 and a structured validation dialogue with the Kuwait Chamber of Commerce and Industry. Findings were validated in October 2025 and finalized in January 2026.

The report finds that artificial intelligence is already present across many firms, mainly in support functions such as document processing, customer interactions, forecasting and anomaly detection. More integrated and enterprise-wide systems are largely concentrated in larger and more digitally mature firms.

Enterprises use artificial intelligence primarily to automate administrative tasks, support analytical decision-making and improve customer services. While many firms begin with stand-alone tools, more advanced adopters integrate machine learning into existing data systems. Progress depends less on access to tools alone and more on data readiness and organizational capacity.

Economic motivations are strong. In the interview sample, 93 per cent of firms cited cost reduction and faster execution as key drivers, while 78 per cent highlighted strategic differentiation. However, the ability to scale remains uneven.

A clear size gap emerges. Among participating enterprises, 45 per cent of large firms reported having formal artificial intelligence policies, compared with 14 per cent of small and medium-sized enterprises. Training programmes were present in 65 per cent of large firms, versus 29 per cent of smaller firms.

The report also distinguishes between perceived and verified productivity gains. While many enterprises report faster task execution, only 26 per cent of reported productivity effects met the study’s criteria for verified impact. In documented cases where measurement conditions were in place, firms reported reductions of 60 to 98 per cent in task time for specific workflows.

The findings suggest that strengthening data systems, skills and governance will be essential to ensure that artificial intelligence adoption translates into measurable and inclusive productivity growth across Kuwait’s private sector.