AI governance must be formulated in a way which boosts the confidence of investors and Saudi Arabia has an ‘open-door policy’ in working with the US Chamber, making it easier to regulate policies and frameworks.
With Saudi Vision 2030 in full swing, Saudi Arabia is leaving no stone unturned on its path to development. Artificial intelligence (AI) is the future of technology, and the Kingdom is certain that embracing the digital revolution means collaborative efforts in the AI sphere is necessary.
Arab News has reported that at the LEAP 2025 technology conference, Steve Lutes, Vice President for Middle East Affairs at the US Chamber of Commerce, emphasized the need to formulate and implement policies that pique the confidence of investors.
With AI still in its developmental phase, governments are waiting for the results before any concrete policies are proposed. Moreover, the private sector has a monopoly over the use and development of AI technology, further delaying any governmental policies and laws.
According to Lutes, AI governance must be formulated in a way which boosts the confidence of investors, making it easier for them to take the risks associated with innovation, further stating that Saudi Arabia has an ‘open-door policy’ in working with the US Chamber, making it easier to regulate policies and frameworks.
Lutes said that this was necessary to facilitate more investments, innovation and strategic partnerships between Washington and Riyadh, not only in AI technology, but the broader economy.
The Saudi Press Agency recently reported that the Kingdom aims to expand its trade and investment with the US to at least $600 billion over the next four years, and that Crown Prince Mohammed bin Salman has already discussed such plans over a telephonic conversation with newly elected President, Donald Trump.
At the conference, Lutes emphasised that it is important to hone the skills of young and tech-savvy workers to further the advancement of AI technology. In order to foster AI innovation and to improve businesses across the Kingdom, improving skills and talent and having promising regulatory frameworks are of equal importance. Lutes also mentioned that having access to the state-of-the-art US technology would be key for Saudi Arabia to further its own technological innovations.
The US and Saudi Arabia have been in constant discussion to advance bilateral economic ties. In July 2024, the U.S.-Saudi Business Council (USSBC) in partnership with the U.S. Chamber of Commerce hosted a Business Roundtable alongside the 8th U.S.-Saudi Trade and Investment Framework Agreement (TIFA). More than 115 representatives from both, the public and private sectors of both countries were in attendance.
The platform served as to initiate dialogues to improve collaborations for economic growth and diversification, strengthen partnership and focus on private sector development in Saudi Arabia, particularly in line with Vision 2030.
While US companies are already playing an important role in improving AI technology and infrastructure in Saudi Arabia, there are concerns surrounding the security measures. Lutes believes that while safety concerns are a top priority for these companies, they are working towards striking a balance to ensure security while being able to share their technological innovations with Riyadh, which is one of the key allies for the US.
Both countries are optimistic about the future of such collaborations. In September 2024, it was announced that Saudi Arabia would partner with US-based semiconductor startup Groq, to build the world’s largest data centre specialized for AI processing. The following month, Saudi Public Investment Fund (PIF) and Google Cloud greenlit a strategic partnership to create a new global AI hub in the Kingdom.
Despite growing geopolitical tensions causing a rift and creating blocs in the international system, countries are still looking for forge collaborations in the fields of technology, healthcare and commerce. With every country now entering the AI race, governments are more keen than ever to ensure their country does not miss the boat. As a result, through more public-private partnerships, there is a strong urge to bring in more foreign investments to develop such technology at the domestic level.
