The Rise Of AI In Saudi Arabia: Importance And Regulatory Framework

Saudi Arabia is rapidly emerging as a key player in Artificial Intelligence (AI), with regional and international collaborations marking a significant step toward transforming its economic landscape in alignment with Vision 2030. This vision's blueprint focuses on reducing Saudi Arabia's reliance on oil and diversifying its economy.

AI is playing a crucial role in this transformation, driving innovation, enhancing productivity, and creating new economic opportunities. It even contributes to shaping the future of mankind and robots alike, as seen with Sophia, an AI-powered humanoid¹ robot who made international headlines after being granted Saudi citizenship².

With this rapid advancement comes the need for a robust legal framework to ensure AI's secure, responsible, and beneficial use — an issue of high importance for policymakers worldwide. This article will address the current legal framework for AI in Saudi Arabia, excluding the discussion of AI-generated liabilities.

Why AI Matters to Saudi Arabia

AI is more than just a tech buzzword in Saudi Arabia; it is at the forefront of the global economy and innovation. AI concerns individuals and businesses of all sizes, from startups to multi-million-dollar investments, highlighting the critical need to regulate this new realm. According to the Saudi National Strategy for Data & AI(iii), AI addresses priority sectors such as education, government, healthcare, energy, and mobility. In this context, AI is proving to be:

• A Catalyst for Innovation: Saudi Arabia and many other governments are heavily investing in research and development to become hubs for AI advancements.
• Revolutionizing Fintech and E-Services: AI enhances analysis, fraud detection, and provides timely financial advice.
• Transforming the Insurtech Sector: AI algorithms help actuaries assess risk more accurately and streamline claims processing.
• Driving Smart Mobility and Urbanism: The NEOM project highlights AI's potential to create sustainable, intelligent urban environments, improving public services and residents' quality of life.
• Improving Healthcare: AI-powered systems can enhance patient diagnosis and prognosis while reducing costs.
• Enhancing Industrial Efficiency: AI-driven automation boosts accuracy, productivity, and quality control.
• Boosting AI Research and Partnerships: Saudi Arabia is establishing AI research centers and forming partnerships with global tech giants, reducing costs while improving customer service through AI-powered chatbots.

AI is a key driver of economic diversification under Saudi Arabia's Vision 2030, with incubators and significant investments supporting this growth in the tune of hundreds of millions of dollars. Saudi Arabia's advanced e-governance, e-service, and e-commerce sectors are naturally integrating AI into healthcare, insurance, finance, education, industry, transportation, and other high-tech applications, fostering new industries and potentially improving the job market despite some fears.

Saudi Arabia ranks highly in the Global AI Index for National Strategy⁴ and actively collaborates with international organizations and participates in global AI forums. These collaborations help Saudi Arabia stay abreast of global trends and standards, fostering an environment conducive to innovation and ethical AI use. For instance:

• The Saudi Company for Artificial Intelligence (SCAI): A PIF-owned company, SCAI has entered a joint venture with SenseTime Group to establish SenseTime MEA. This collaboration, worth SAR 776 million (USD 206 million)5, focuses on developing AI solutions in smart cities, business intelligence, healthcare, and education, with plans to create a sophisticated AI lab in Saudi Arabia⁶.
• Partnership with IBM: The Saudi Data and Artificial Intelligence Authority (SDAIA) partnered with IBM to launch Watson X, a groundbreaking Arabic AI model for the Middle East, utilizing SDAIA's "ALLaM" Arabic text generation large language model⁷.
• Global AI Summit Participation: Saudi Arabia's involvement in the Global AI Summit⁸ has facilitated dialogue with international experts, promoting ethical AI development and implementation. This summit serves as a key platform for exchanging ideas and best practices in AI⁹.
• Strategic Partnerships with Google and Intel: These tech giants have discussed expanding strategic partnerships with Saudi Arabia in various fields, including AI and Cloud Computing¹⁰.

The Legal Framework

The Saudi AI Ethics Framework¹¹ applies to all AI stakeholders involved in designing, developing, deploying, implementing, using, or being affected by AI systems within Saudi Arabia. This includes public entities, private entities, non-profit organizations, researchers, public services, institutions, civil society organizations, individuals, workers, and consumers. The framework classifies AI systems according to their associated risks:

• Little or No Risk: AI systems posing little or no risk, such as spam filters, have no restrictions but are recommended to be ethically compliant.
• Limited Risk: AI systems with limited risks, such as technical programs, are subject to the AI ethics principles outlined in the framework.
• High Risk: AI systems posing high risks to basic rights must undergo pre- and post-conformity assessments and adhere to both ethical and statutory requirements.
• Unacceptable Risk: AI systems posing unacceptable risks to people's safety, livelihood, and rights, such as those involving social profiling or exploitation of children, are prohibited.

This risk-based approach, established in 2023, aligns with the newly implemented EU AI Act, which also classifies AI according to risk. The majority of the EU AI Act addresses high-risk AI systems, with limited-risk systems subject to lighter transparency obligations. Minimal-risk AI systems, such as AI-enabled video games and spam filters, are unregulated, while unacceptable-risk systems, such as social scoring, are prohibited¹².

In Saudi Arabia, SDAIA has introduced two versions of the "Generative AI Guideline": one directed at government employees¹³ and another for the public¹⁴. Both versions provide guidelines on adopting and using generative AI systems, offering examples based on common scenarios, highlighting challenges and considerations, proposing principles for responsible use, and presenting recommended practices. These guidelines emphasize fairness, reliability, safety, transparency, accountability, privacy, security, and social and environmental benefits.

The Regulatory Bodies
Given AI's international impact and growing applications, Saudi Arabia has taken proactive steps¹⁵ to develop policies, regulations, and regulatory authorities to address ethical, security, cybersecurity, and regulatory concerns, ensuring AI technologies are used responsibly. Key regulatory bodies include:

1. National Strategy for Data and AI (NSDAI): Launched in 2020, the NSDAI outlines Saudi Arabia's vision to become a global leader in AI by 2030¹⁶. This strategy focuses on building a robust AI ecosystem, fostering talent, and ensuring ethical AI development.
2. National Cybersecurity Authority (NCA): The NCA is a government authority focusing on the country's computer-related security.
3. Data Protection and Privacy Laws: To safeguard citizens' data, Saudi Arabia has enacted comprehensive data protection regulations, such as the Personal Data Protection Law, governing the collection, processing, and storage of personal data. SDAIA recently invited the public to provide feedback on Standard Contractual Terms for Personal Data Transfer, aiming to establish standard contractual terms for contracts involving the transfer of personal data outside Saudi Arabia¹⁷.
4. Saudi Data & AI Authority (SDAIA): SDAIA oversees AI and cyber activities, ensuring compliance and public safety. Although detailed mechanisms are not fully regulated, SDAIA is tasked with monitoring compliance with Saudi AI Ethics Principles through:

• AI Ethics Development: Developing, issuing, and updating AI Ethics principles and framework.
• AI Ethics Adoption Plan Development: Providing supporting materials and continuous guidance to facilitate the adoption of SDAIA's framework.
• AI Ethics Advisory: Supporting entities in complying with AI Ethics principles and answering related queries.
• AI Ethics Compliance Measurement: Measuring compliance regularly, directly or through sector regulators, and auditing AI Ethics activities when required.
• AI Ethics Compliance Monitoring: Conducting investigations and audits, monitoring compliance with the Framework, and supporting National Regulatory Authorities¹⁸.

SDAIA has introduced ethical guidelines for AI development and use, emphasizing transparency, accountability, and fairness, ensuring AI systems are designed and deployed responsibly and in line with SDAIA's guidelines.

Conclusion: The Path Forward for Saudi Arabia

Saudi Arabia is taking a proactive approach to AI regulation, aligning with global developments and making the Kingdom an appealing hub for AI innovation. With a focus on ethical, dynamic, secure, and responsible AI applications under Vision 2030, Saudi Arabia is poised to lead in AI advancements, fostering sustainable growth and innovation in the region.

Footnotes

1 Sophia - Hanson Robotics
2 Everything You Need To Know About Sophia, The World's First Robot Citizen (forbes.com)
3 National Strategy for Data & AI
4 Saudi Arabia Earns Top Marks in Global AI Index for National Strategy (spa.gov.sa)
5 https://www.intlbm.com/scai-sensetime-joint-venture
6 Saudi Company for Artificial Intelligence (http://www.scai.sa/)
7 https://saudigazette.com.sa/article/643021/SAUDI-ARABIA/Saudi-AI-model-ALLaM-joins-IBMs-watsonx-platform-bolsters-Arabic-language-capabilities
8 Organized by SDAIA, this summit brings together international experts to discuss AI advancements and ethical considerations. It has become a key platform for dialogue and collaboration in the AI field. Reference: https://globalaisummit.org
9 Saudi Arabia establishes International Center for AI Research and Ethics |Arab News (https://www.arabnews.com/node/2344436/business-economy)
10 https://www.geospatialworld.net/prime/google-intel-strategic-partnerships-saudi-arabia/

11 ai-principles.pdf (sdaia.gov.sa)
12 High-level summary of the AI Act | EU Artificial Intelligence Act
13 GenAIGuidelinesForGovernmentENCompressed.pdf (sdaia.gov.sa)
14 GenerativeAIPublicEN.pdf (sdaia.gov.sa)
15 Saudi Arabia Earns Top Marks in Global AI Index for National Strategy: https://www.spa.gov.sa/en/N2085216
16 The Saudi Data and Artificial Intelligence Authority (SDAIA) launched the NSDAI in 2020. This strategy outlines Saudi Arabia's vision to become a global leader in AI by 2030 according to Vision 20230, focusing on building a robust AI ecosystem, fostering talent, and ensuring ethical AI development. Reference:[SDAIA Website](https://www.sdaia.gov.sa)
17 SDAIA Invites the Public to Provide Feedback on Standard Contractual Terms for Personal Data Transfer (spa.gov.sa)
18 Saudi AI Ethics Principles, p. 29. ai-principles.pdf (sdaia.gov.sa)