KSA AI in Social Media Market Outlook to 2028

KSA AI in Social Media Market Overview

In the last five years, KSA AI in Social Media Market has witnessed substantial growth, this is reflected by global AI in social media market reaching a market valuation of USD 990 Mn in 2023 driven by increasing digital engagement and the rising adoption of AI technologies to optimize social media strategies.

Key players in the Saudi Arabian AI in social media market include global technology giants such as IBM, Microsoft, and Google, along with local players like STC Group and Zain. These companies lead through innovations in AI-driven analytics, machine learning algorithms, and robust social media management tools, establishing their dominance in the market.

In May 2024, IBM, in collaboration with the Saudi Data and Artificial Intelligence Authority (SDAIA), introduced the Arabic Large Language Model (LLM) named ALLa M. Now integrated into IBM's enterprise AI and data platform, Watsonx, ALLa M is designed to improve Arabic language capabilities in AI applications.

Riyadh and Jeddah are the dominant cities in the Saudi AI in social media market due to their status as major business hubs with high digital engagement rates. Riyadh, as the capital, hosts numerous tech firms and startups, while Jeddah's strategic location as a commercial center drives its significant market share in AI-driven social media solutions.

KSA AI in Social Media Market Segmentation

The KSA AI in Social Media market is segmented by various factors like application, industry vertical, and region.

By Application: The market is segmented by application into customer engagement, content management, and analytics. In 2023, analytics dominated the market, driven by the increasing demand for actionable insights from social media data. AI-powered analytics tools help businesses measure campaign effectiveness and track customer sentiments, making them crucial for data-driven strategies.

By Industry Vertical: The market is segmented by industry vertical into retail, healthcare, and finance. Retail is the leading segment in 2023, largely due to the sector’s heavy reliance on social media for customer interaction and marketing. AI applications in retail help in personalized advertising, inventory management, and customer service, enhancing retail operations.

By Region: The market is segmented regionally into north, south, east, and west Saudi Arabia. In 2023, the Northern region dominated the market. This is due to its role as the political and economic hub of the country, with numerous businesses and technology firms driving the adoption of AI in social media.

KSA AI in Social Media Market Competitive Landscape

Company

Establishment Year

Headquarters

IBM

1911

Armonk, NY

Microsoft

1975

Redmond, WA

Google

1998

Mountain View, CA

STC Group

1998

Riyadh

Amazon Web Services (AWS)

2006

Seattle, Washington, United States

Microsoft: In early 2024, Microsoft announced the launch of an AI Center of Excellence in Riyadh in collaboration with Pw C Middle East. This initiative aims to enhance the AI capabilities of Saudi engineers and researchers, aligning with Saudi Arabia's Vision 2030 for digital transformation. The center will focus on training young professionals in advanced AI skills, including Azure Open AI and open-source models.

Amazon Web Services (AWS): In May 2024, Amazon Web Services (AWS) announced an investment initiative in Saudi Arabia, pledging over USD 5.3 billion to establish new data centers in the country. This move aims to enhance the digital infrastructure in Saudi Arabia, supporting the growing demand for cloud services and advanced technologies. The new data centers will offer a range of AWS services, enabling businesses and government entities to leverage cloud computing, AI, and data analytics.

KSA AI in Social Media Market Analysis

KSA AI in Social Media Market Growth Drivers

Increasing Adoption of AI-Driven Marketing Tools: The rise in AI-driven marketing tools is an important growth driver in the KSA AI in social media market. Saudi Arabia has announced USD 40 billion in funding for AI as part of its Vision 2030 initiative driven by their ability to enhance customer targeting and engagement. This support from Saudi Vision 2030's towards digital transformation and the growing number of businesses investing in AI technologies is pushing the market towards competitive advantage.

Expansion of E-Commerce: The rapid expansion of e-commerce in Saudi Arabia is fueling the growth of AI in social media. In 2023, e-commerce sales in Saudi Arabia reached USD 42 billion, reflecting an increase driven by the growing adoption of digital payment methods and a shift towards online shopping. This represents a 28% increase in sales compared to the previous year, alongside a 43% surge in transaction volume. Additionally, the e-commerce gross merchandise value (GMV) in Saudi Arabia is projected to grow from USD 18.8 billion in 2023 to USD 28.7 billion by 2028, indicating a steady growth trajectory for the industry.

High Internet Penetration and Social Media Usage: With internet penetration in Saudi Arabia reaching 99% in 2024, and t is noted that there were 35.1 million social media users, there is a heightened demand for AI solutions to manage and analyze social media data. This widespread use creates opportunities for businesses to leverage AI for more effective customer engagement and insights, boosting market growth.

KSA AI in Social Media Market Challenges

Data Privacy Concerns: Data privacy remains a major challenge in the KSA AI in social media market. In 2023, data breaches and privacy concerns led to increase in compliance costs for companies using AI tools. The absence of robust data protection regulations undermines market confidence and raises operational costs for businesses adopting AI technologies. Companies are forced to invest heavily in cybersecurity measures to protect sensitive information, which diverts resources from other critical areas and slows down AI adoption.

Integration Complexity: Integrating AI tools with existing social media platforms presents substantial challenges. In 2024, majority of companies reported difficulties in seamlessly incorporating AI systems into their social media workflows. The complexity of integrating AI technologies with diverse social media platforms can lead to inefficiencies and disruptions in operations. Businesses often face compatibility issues, requiring substantial customization and technical expertise to ensure smooth integration. This complexity can hinder the effective use of AI and limit its potential benefits for businesses

KSA AI in Social Media Market Government Initiatives

Digital Transformation Initiative: The Saudi government’s Digital Transformation Initiative, launched in 2023, aims to enhance the integration of AI technologies across various sectors, including social media. This initiative includes funding for research and development in AI, which is expected to drive innovations in AI social media tools and support market growth.

Saudi Data & AI Authority (SDAIA): SDAIA was established in 2019 to help KSA become a global leader in responsible AI and create a world-class AI ecosystem. SDAIA has collaborated with leading international academic institutions to establish training programs and scholarships, training over 45,000 professionals in data and AI skills

KSA AI in Social Media Future Market Outlook

The KSA AI in Social Media Market is poised for remarkable growth, driven by advanced personalization and predictive analytics, integration of AI with augmented reality (AR), and increased regulatory focus on AI ethics.

Future Market Trends

Advanced Personalization and Predictive Analytics: By 2028, AI in social media will increasingly focus on advanced personalization and predictive analytics. AI tools will evolve to provide even more tailored content recommendations and predictive insights, enhancing customer engagement and optimizing marketing strategies. This trend will be supported by the growing availability of high-quality data and advances in machine learning technologies.

Integration of AI with Augmented Reality (AR): Integration of AI with augmented reality (AR) will become an important trend. AI-driven AR applications will offer immersive social media experiences, such as virtual try-ons and interactive advertising. This integration is expected to drive market growth as businesses seek innovative ways to engage customers and enhance their social media presence.
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