Are UAE Businesses Ready for AI Risks?
Mokshita P.
Artificial Intelligence

Are UAE Businesses Ready for AI Risks?

The report highlights AI reliance, workforce practices, and governance as key concerns; proactive HR and risk management crucial for long-term success.

According to a recent report by Mercer Marsh Benefits, organisations in the UAE are facing various risks related to their employees. These include things like technology disruptions, how they manage their workforce, governance, and sustainability issues. If these risks aren't dealt with, they could seriously affect the success of these organisations in the future.

The report, called People Risk 2024, gathered insights from over 4,500 HR and risk professionals globally, including more than 100 from the UAE. It looks at risks in five main areas: technological change, workforce practices, health and safety, governance and compliance, and environmental sustainability.

Interestingly, UAE respondents are particularly concerned about the risks associated with AI. Almost half of them worry that employees might rely too much on AI-generated information without verifying it properly. There's also concern about budgets and plans not aligning well enough when it comes to implementing AI.

The report also highlights that UAE organisations are more aware of these people-related risks compared to other parts of the world. They see HR and risk management as crucial in addressing these issues effectively. For instance, many are worried about disparities in rewards between existing staff and new hires, inadequate emotional well-being support programs, and insufficient healthcare coverage for climate-related health issues.

In response to these AI-related concerns, Mercer Marsh Benefits suggests that businesses should work closely with their leaders to fully understand the benefits and risks of AI. They should plan for unforeseen situations, promote safe use of AI technologies, and develop strategies that put digital tools at the forefront of managing people.

Overall, the report suggests that by focusing on these people-related issues and taking proactive steps, UAE organisations can better manage risks and ensure their long-term success.