Artificial intelligence (AI) - if developed and deployed responsibly, inclusively, and thoughtfully - could mark a new era in sustainable development. In the RBAS region alone, countries are building billion-parameter models, cutting billion-dollar deals, and looking to train millions of their citizens. The scale and potential is unprecedented. For countries across this region, AI could transform healthcare, agriculture, education, and public and private service delivery. It could drive new industries and opportunities, and further lower the barriers for countries to play a key role in the global digital and innovation economy.

And AI isn’t abstract. Countries and communities across the region are already putting it into practice — from the UAE establishing a dedicated Ministry of AI in the UAE, to Egypt's explorations of AI to improve healthcare diagnostics and hospital optimisation. The region also has strong AI credentials. From early AI innovation in the 1980s, to the launch of the world's first graduate-level AI research university, and the development of a globally-ranked open source large language model.

However, the positive power and potential of AI for the region is not guaranteed. And real risks and challenges exist. 

AI could exacerbate existing digital and innovation divides - with people lacking the skills, access, devices, or opportunities to leverage these potentially transformative tools and technologies. Similarly, a global 'AI race' could see companies, research, talent, and capital concentrated in a handful of countries outside of the region. Whilst the growing - and sizeable - resource requirements of AI could further impact a region that is already grappling with the climate crisis.

Ensuring that AI has the greatest benefits to societies, economies, and institutions centres around how AI is 'governed'. However, AI 'governance' is not just about legislation and regulation, and also not just about protection from AI-enabled or AI-amplified harms. AI governance is about shaping the skills, behaviours, and cultures to empower individuals, businesses, and organisations to put AI into practice. Positively transforming lives and livelihoods, and catalysing sustainable development. Ensuring this potential is the key driver of UNDP's AI efforts in the region.