The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National


The UAE has much to gain from an AI-enabled government adviser


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July 03, 2025

We will soon live in the artificial general intelligence age. What you do with that information will determine your place in history.

Last week, the UAE announced that a National Artificial Intelligence System would become a non-voting member of all federal and government company boards – and an advisory member of the Council of Ministers starting next year.

The world should take notice.

This isn’t just a headline-grabbing initiative or a clever nod to the AI hype cycle. It is a serious declaration: governance itself is being reimagined. Intelligence – both human and artificial – will now sit side by side at the decision-making table.

Once again, the UAE isn’t waiting for the future to arrive – it is shaping it.

This move comes as the OECD’s latest Reimagining Government report makes a powerful case: that public sectors can no longer function as slow-moving regulators. They must become shapers of behaviour, markets and futures.

While most of the world debates AI’s ethical dilemmas or fears job displacement, the UAE is pivoting boldly towards the opportunity – transforming AI from a back-office assistant into a strategic actor in policy and decision-making.

The UAE is transforming AI from a back-office assistant into a strategic actor in policy and decision-making.

Though it began in academic labs in the 1950s, AI has matured exponentially in the past three years.

Today’s systems can analyse billions of data points, detect anomalies in financial flows, simulate geopolitical risk and model climate shocks in real time. This is more than automation as we progress fast towards AGI – systems capable of human-level reasoning across diverse domains. These systems don’t just respond; they think, adapt and generate original insights, and – according to OpenAI’s Sam Altman and Anthropic’s Dario Amodei – AGI could be with us in as little as two years.

If you are sitting in government, prepare for this: an AGI system tasked with revising a national budget could process 30 years of fiscal policy, the current citizen sentiment, environmental data, infrastructure needs and long-term equity goals – then simulate the impact of dozens of policy decisions. Any of this could be done in a matter of hours, not months.

The private sector is already embracing AI-powered leadership. Salesforce, for example, reports that AI performs up to 50 per cent of its work with 93 per cent accuracy. Chinese gaming firm NetDragon Websoft appointed an AI chief executive, seeing a 10 per cent stock increase. In Poland, Dictador placed an AI executive in charge of strategy. These are no longer public relations stunts – they are the front edge of a new executive model.

But the UAE is taking this one step further: it is nationalising the model. Institutionalising it. Making AI an official advisory participant in the heart of government.

The AI entity will not vote or replace ministers. Instead, it will serve as a strategic co-pilot: scanning, simulating and synthesising complex variables to support sharper, faster and more transparent decisions. This is the embodiment of what the OECD calls the shift from “reactive bureaucracy” to anticipatory governance.

AI’s involvement at board level is just the beginning. Ministries of health will use it to model pandemic responses. Trade agencies will forecast demand shifts before they happen. Environmental teams will design adaptive strategies based on real-time data.

And this entire transformation is happening within a sovereign, ethical and encrypted framework, aligning with the UAE’s AI governance standards – building public trust in a moment when “black box” algorithms threaten transparency.

This is critical, as the OECD emphasises that agility is the new legitimacy. In an age of rapid shocks – climate, health, geopolitical – slow governments lose trust. The UAE’s model, by contrast, offers real-time simulation, data-informed decisions and transparency by design.

But this leap forward demands more than infrastructure – it demands people. The OECD notes the importance of system thinking, digital capacity and collaborative leadership. These are not optional skills. They are core to the government’s relevance in the AI age. That means upskilling every tier of public service. Not just AI engineers, but policy designers, frontline officers, educators and regulators. Everyone must learn to work with, not just around, machines.

In adopting AI in the form, the UAE offers a practical answer to one of the OECD’s boldest provocations: what if government itself became a platform for intelligence – human and artificial – to co-create the future?

And yet, as the OECD warns, the future is already here, but it’s not evenly distributed. While countries such as the UAE are sprinting forward, others risk falling behind – locked in outdated bureaucratic routines and legacy decision-making. Some countries will hesitate. Some will worry about legitimacy, ethics, or optics. But others will look at the UAE and say: this is the new blueprint – AI will not replace human leadership. But it will augment it, challenge it and sharpen it.

In a world of rising complexity, that might just be our greatest advantage.

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

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The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: July 04, 2025, 4:58 AM