Almost every week at the local and regional level, we hear about new scientific breakthroughs in AI applications. This reflects not only a growing societal awareness but also the active engagement of research institutions and government funding, most recently focused on AI research. We have also witnessed the emergence of local start-ups and institutions in AI and digital systems, further highlighting the public’s recognition of the importance of investing in advanced technologies and digital transformation.
These achievements go beyond the initial thrill of success. Our early hopes focused on building digital awareness within society, which later evolved into successful AI research. We have seen substantial efforts from supportive agencies and research teams striving for pioneering advances in digital systems, including AI. However, our vision has since expanded to a new, critical goal: achieving economic sustainability through AI and advanced technology projects. In this article, we aim to identify our current gaps and recalibrate our economic compass considering digital developments.
It is clear that research excellence eventually bears economic fruit, albeit over time. This gives us hope that successive successes in AI research are essential steps towards building a digital economy, one grounded in digital systems. Yet, despite notable achievements in smart digital research, we cannot claim to have fully transitioned into a high-level digital economy. Many countries in our region still struggle to establish a firm foothold in the digital economy, with industries continuing to rely on traditional systems. A key objective must be the digital transformation of industry, the core and engine of the economy. Industrial sustainability depends on nearly complete reliance on digital systems for operational and production processes. While we have already seen successful examples of AI applications in industry, improving quality and reducing operating costs, these remain largely supplementary. We need to broaden our digital operations further.
More crucially, direct investment in digital systems through the development of intelligent algorithms and applications is essential. This requires the emergence of robust companies and institutions dedicated to digital systems. Although the Omani government provides significant support for establishing these emerging digital institutions -especially those rooted in national talent- global challenges often overshadow local efforts. Surveys, including one published by Oman newspaper on July 31, 2024, titled “AI Startups Face Challenges from Digital Giants,” indicate that the dominance of large digital conglomerates over the digital economy forces investments along a narrow, monopolistic path. This unfair competition hinders the broader transition to a digital economy, despite strong local support, as global economic forces continue to influence us all.
We must recognise that while our research excellence is crucial, it must be transformed into economic reality by localising digital investment and converting industrial and economic operations into digital systems. Achieving this shift requires moving from a focus solely on scientific research to one that embraces scientific and digital investment through real-world AI applications across all sectors of business and industry. We have reached a level of digital awareness that allows us to build high interactive capacities with digital systems, evident in our schools, universities, and research institutions producing esteemed digital outputs. Yet much of this work remains confined to academic publications and archival records, rather than being translated into practical industrial applications.
To bridge this gap, educational institutions must collaborate with economic bodies to raise awareness of the economic importance of digital projects, linking research to planning, monitoring, and implementation. It may be necessary to tie these digital projects to emerging national digital institutions, supported by the government. Such measures would solidify the foundation of our digital economy, transforming general digital awareness into active digital investment and operational capacity. In turn, this would empower emerging digital institutions, boost their economic contributions, and enable them to grow and face the global challenges ahead.
The writer is Omani academic and researcher
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