The Arabic AI Imperative: Sovereignty, Strategy, and Innovation in the Age of LLMs

I had an interesting call with a member of Saudi Arabia Holdings last week, and the discussion went down the path of AI and how Arabic AI is an imperative. Candidly, I’d never thought about AI this way.  On the heels of almost $4T in committed investment in this area and a long weekend, I thought I’d share my thoughts. As artificial intelligence accelerates the next wave of digital transformation, the Arab world faces a pivotal decision: Will we remain consumers of foreign-built AI technologies, or will we take the reins and become creators of sovereign AI systems that reflect our language, values, and strategic interests?

This is not a question of technological preference but sovereignty, trust, and long-term economic vitality. Large language models (LLMs) are shaping how we think, speak, and act in an increasingly algorithmic world. If these models are not built with the Arab world in mind, they will not serve us—they will shape us.

With its Vision 2030 mandate and growing leadership in digital innovation, Saudi Arabia has a unique opportunity to define what “Arabic AI” means—not just for the Kingdom, but for the entire region. What should some of those considerations be?  Here’s what I came up with.

AI Sovereignty & Strategic Autonomy

When a region outsources its AI to foreign models, it also outsources its values, decision frameworks, and even elements of its political will. Today’s LLMs are primarily trained on Western data, optimized for English-speaking contexts, and embedded with cultural norms that may not align with those of Arabic-speaking societies.

As you might suspect, this has real implications:

• Geopolitical vulnerability from over-reliance on foreign platforms
• Cultural bias and erasure of nuance in Arabic expressions, history, and perspectives
• Economic leakage, as cloud infrastructure, data storage, and model training, benefits non-regional players.

To assert strategic autonomy, Saudi Arabia and its GCC neighbors must prioritize building sovereign AI—models trained on local data, governed by regional laws, and shaped by native voices.

Building Arabic-Native Models

Won’t translation solve this problem? No … translating prompts and outputs into Arabic will fall well short of “good enough”. True AI localization requires models that think in Arabic—not just speak/write it.

Arabic is a vibrant and complex language with dozens of dialects, centuries of classical literature, and modern terminology evolving every day. Training LLMs on this linguistic and cultural diversity presents a variety of challenges -- both technical challenges and strategic opportunities.  These models must understand the intricacies of spoken Arabic as well as bring contextual relevance; meaning AI must reflect regional events, societal norms, and religious sensitivities. Saudi Arabia is uniquely positioned to lead this charge, leveraging its institutions, universities, and cloud infrastructure to train the next generation of Arabic-native models. Cross-GCC collaboration can further accelerate this effort.

Trust, Transparency, and Regulation

In an age defined by deepfakes, hallucinated facts, and opaque decision-making, trust has become a form of currency, and trust begins with ownership. When AI systems are built as black boxes in foreign environments, disconnected from local oversight and cultural context, I would submit that citizens may never fully trust their (AI) decisions. Sovereign AI, however, presents a powerful alternative: one that allows us to align algorithms with national values and ethical standards, ensure compliance with emerging regional data protection laws, and build AI systems that are transparent and accountable, especially in critical sectors like public services, education, and healthcare. Just as important, AI literacy must be woven into education systems and policymaking processes. People must not only interact with AI—they must understand who controls it, how it functions, and what principles guide its decisions. Only then can a GCC country foster meaningful public trust in this transformative technology.

Innovation as a Sovereign Asset

I believe that sovereign AI is not merely a defensive necessity but a significant economic opportunity. By investing in Arabic-language AI startups, supporting academic research, and expanding regional cloud infrastructure, Saudi Arabia can unlock job creation across the entire AI value chain, from data labeling and model training to deployment and governance. At the same time, keeping sensitive data within national borders enhances security and reinforces digital sovereignty. Perhaps most compellingly, developing AI technologies that reflect Arab language and values allows the region to project global influence, turning Arabic AI tools into powerful soft power instruments. Through a dynamic public-private innovation ecosystem, Saudi Arabia has the potential to transform Vision 2030’s digital ambitions into a reality—and position itself as the Arab world’s undisputed hub for AI innovation. Further, there’s a strong argument that the leader in the Arab world might lead AI innovation globally, but I’ll save that argument for another time. 

Conclusion: The Moment Is Now

The GCC nations are uniquely positioned to lead. With sovereign wealth, centralized decision-making, young digital-native populations, and ambitious national visions like Saudi Arabia’s Vision 2030 and the UAE’s AI Strategy, the region can move faster and more cohesively than many Western counterparts. Where the West contends with fragmented regulation, aging infrastructure, and political gridlock, the GCC can invest boldly in localized models, sovereign cloud infrastructure, and regionally aligned data governance.

But speed alone isn’t enough. The real opportunity lies in building AI that speaks our language—literally and culturally. If we fail to embed our values, dialects, and context into the core of these systems, we risk importing the biases and priorities of others. The Arabic AI Imperative is clear: we must claim our digital future in our own voice, on our own terms—and do so with urgency, clarity, and purpose.

In short, for bold visions to be successful like Vision 2030; Saudi Arabia will not just need to lead in adoption—but in authorship. How does the Kingdom get there? Here are a few ideas:

If you are a policymaker, educator, investor, or technology leader—now is the time to engage:

• Support Arabic-native LLM development
• Fund regional AI research and education programs
• Collaborate on ethical governance frameworks
• Champion the use of AI that protects and reflects your people

Sovereign AI is no longer optional—it’s the foundation of national power in the digital age. It defines who controls critical infrastructure, who leads in economic innovation, and whose language, values, and culture are embedded in the next generation of global systems. Nations that fail to invest will be shaped by those that do. Those that lead will set the rules.