Page 11 - Paramount PR Report - April 2025

The region has evolved from following global trends to becoming a proactive early
adopter of AI technologies.

Generative AI alone are projected to contribute $21 billion to $35 billion annually to
the GCC economies, adding to the $150 billion from other AI technologies. This
represents 1.7 per cent to 2.8 per cent of the GCC’s current annual non-oil GDP. A
recent McKinsey survey indicates that nearly three-quarters of respondents reported
their organisations were already utilising generative AI in at least one business

function, with over half of the GCC respondents investing at least 5 per cent of
their digital budgets in generative AI, higher than the global average of 33 per cent.
Despite impressive adoption, reports on AI threats are not widely available, due to
the early stage of adoption and potential concerns around reputational damage.

However, the GCC region’s position as a global economic powerhouse, coupled with
prevailing geopolitical concerns, necessitates vigilance. “With global technology
leaders, including Apple and Amazon, having experienced AI poisoning, the region
must implement robust security measures to safeguard AI systems and their
substantial economic contributions,” Kurup said.

AI poisoning impacts more than financial status, as it can jeopardise a company’s
brand reputation, with varying severity across sectors. For example, in an oil and gas
company, a poisoned predictive maintenance system failing to detect equipment
failure can lead to costly shutdowns and repairs. In the energy sector, downtime can
cost around $2.48 million per hour. Fortune Global 500 companies face average
annual unplanned downtime cost of around $129 million per facility.

“Though quantifying the exact financial losses remains difficult due to AI’s evolving
nature AI, the potential for critical economic damage is undeniable. As AI becomes
more deeply integrated into critical infrastructure and business processes, the
financial implications of successful AI poisoning attacks are expected to intensify,”
Kurup said.

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