Microsoft says UAE partnership is ‘critical to its success’ at Dubai AI event

Technology giant says it is committed to collaboration for ‘decades to come’

At the Microsoft AI tour in Dubai, company officials praised the UAE as a 'hub of innovation'. Antonie Robertson/The National

For Microsoft in recent years, the road to AI prosperity and breakthroughs goes straight through the UAE. That’s the big message from the technology giant’s AI tour in Dubai, where the company’s vision for artificial intelligence was on full display.

“We’re thoughtful about why the UAE is a special place for this,” said Naim Yazbeck, Microsoft's UAE general manager, to a packed exhibition hall at Atlantis The Palm in Dubai, on Thursday.

“This will be a partnership for decades to come, and we’re proud of it,” Mr Yazbeck added. He explained that Microsoft's interest in the UAE revolves around the country's early government interest and leadership in AI, the diversity of technology investments − as well as the UAE's focus on training residents to make the most of the technology.

Several weeks before Microsoft's AI Tour in Dubai, Doug Dawson, the company's vice president of global communications, spoke to The National about Microsoft's affinity for the UAE.

“It's a growing hub of innovation,” said Mr Dawson. “The UAE was very proactive in making AI investments.”

Also in terms of investments, Microsoft made a significant splash in both the Middle East and in technology circles in 2024, when it announced a $1.5 billion investment in UAE artificial intelligence and cloud company G42.

Also in 2024, the technology giant, based in Redmond, Washington state, also opened its first Middle East AI for Good Lab in the UAE capital of Abu Dhabi.

At the Dubai event, Charles LaManna, Microsoft's corporate vice president of business and industry for the company's Copilot division checked out exactly how Microsoft technology is being used throughout the UAE by government entities and companies such as Alef, First Abu Dhabi Bank and Al Futtaim.

Wael AbuRizq, artificial intelligence and advanced analytics adviser with the Department of Government Enablement told Mr Lamanna that 300,000 people have used Abu Dhabi's TAMM government services AI assistant in the first two months since its launch.

“We are moving away from large language models to large action models,” said Mr AbuRizq, explaining the technological underpinnings of the app, which uses Microsoft technology.

In an exclusive interview with The National, Mr Lamanna said the TAMM demo was among some of the most impressive he had seen in his travels throughout the world.

“Not only was it doing question-and-answer and knowledge-based answers, but it has five agents that can do action completion and task completion, and that is cutting-edge frontier work,” he said.

“Many of the AI conversational agents built by consumer companies in the US or anywhere else, they're not doing that level of investment or innovation.”

Mr Lamanna addressed the thousands in attendance at the event showcasing various AI products made by Microsoft and other companies. He showed the newest features of the company's Copilot AI platform, and emphasised Microsoft's push for AI agents that will work alongside humans to complete various tasks.

“You can use natural language to create agents that are incredibly powerful,” he told the crowd, pointing out that Microsoft had two datacentres in the UAE to help power the company's AI cloud computing platform, Azure.

He concluded his keynote by circling back to Microsoft's continued affinity for the UAE. “We succeed when the world around us succeeds, and this community in the UAE is critical to our success,” Mr Lamanna said. “The work you do in this region is so important to our mission.”

The overall AI research, investments and partnerships for Microsoft appear to be paying off.

Most recently, the company reported a 33 per cent surge in its fiscal 2024 second-quarter net profit on robust Azure cloud business and double-digit growth in quarterly revenue which surpassed analyst expectations.

Yet as Microsoft approaches the ripe age of 50, continued success is far from guaranteed.

As any technology analyst or executive will privately tell you, the dustbin of history is filled to the brim with lofty product launches that have seemingly melted on contact, leaving behind nothing but faint memories of hype and hoopla.

“We're not going to miss this moment,” Mr Lamanna said, pointing out that Microsoft shows no sign of slowing down AI investment.

“We are dedicated to making sure that we are prepared for this AI transformation.”

If artificial intelligence becomes the new oil in terms of driving economic prosperity, as many have suggested, that obviously bodes well for Microsoft.

For the UAE, which seeks to make an impact beyond oil, it also seems AI holds the keys to securing that future for economic success.

The goals between Microsoft and the UAE, continue to work in tandem. “Microsoft is committed to partnering with UAE organisations, across the public and private sectors to advance the country's innovative leadership on its AI transformation and help organisations across the country unlock new growth,” read a statement from Microsoft promoting the event in Dubai.

In recent years, the UAE − the Arab world’s second biggest economy − hasn't been shy about its desire to be an AI front-runner, as it seeks to diversity its economy.

The country’s efforts have resulted in the establishment of start-ups, partnerships and investments from industry leaders.

The UAE has also created several large language models, such as Jais, seen as the backbone of the technology.

Jais Chat, a mobile app iteration of Jais also made an impact in the country with its ability to be proficient in both Arabic and English.

Back in 2019, well before AI was on the tip of almost every technology analyst's tongue, the UAE was among the first in the world to start a university dedicated to artificial intelligence, Mohamed bin Zayed University of Artificial Intelligence.

A total of 101 graduates representing 22 nationalities received diplomas during MBZUAI's 2024 class, with Emirati's making up 24 per cent of those.