UAE food and beverage manufacturers are moving faster on industrial artificial intelligence than their global peers, according to a new Schneider Electric study.
The company’s 2026 Industrial AI in CPG Study: UAE found that 23% of UAE manufacturers already consider AI a core part of operations and decision-making. The global figure stands at 16.3%.
The gap is expected to widen. Some 59% of UAE manufacturers expect AI to have a transformational impact on their organisations by 2030. Globally, the figure is 42.2%.
The findings were released during Schneider Electric’s Innovation Summit Middle East and Africa in Abu Dhabi. The two-day event at ADNEC brought together more than 2,500 attendees from industry, government, technology and academia.
UAE manufacturers expect faster AI adoption
The study points to a rapid shift from AI pilots towards wider industrial deployment.
About 29% of UAE manufacturers said they have deployed AI across multiple sites or processes. That compares with 25.3% globally.
The near-term outlook is also stronger. Some 57% of UAE respondents expect AI to become significantly scaled across operations by 2027. The global figure is 40.5%.
This suggests that UAE manufacturers are not treating AI only as an experimental technology. Instead, many are planning to embed it into production and operational processes.
Schneider Electric said the wider global study covers industrial AI across the consumer packaged goods sector, including food, beverage and pharmaceutical manufacturing.
AI returns remain a major focus for UAE manufacturers
UAE manufacturers also show high confidence in the financial returns from AI investment.
Some 96% expect AI to deliver a return on investment by 2027. That compares with 88.2% globally.
By 2030, 92% of UAE respondents still expect AI to deliver ROI. The global figure falls to 79.3%.
Expected returns also rise over the period. UAE respondents expect average AI returns of 42.4% by 2027. That rises to 59% by 2030.
Globally, the corresponding expectations are 38.1% and 56.9%.
For businesses, the figures shift the AI debate from adoption alone to measurable operating returns.
Cost becomes the main barrier to AI scaling
However, the study highlights a different challenge in the UAE.
Implementation cost is the leading barrier to scaling AI, cited by 46% of UAE manufacturers. Globally, only 19.1% identified cost as a barrier.
Lack of clear business ownership is another concern. It was cited by 23% of UAE respondents, compared with 3.1% globally.
Meanwhile, skills shortages and legacy infrastructure rank lower in the UAE than in the global sample.
Skills gaps were cited by 40% of UAE respondents, against 43.6% globally. Legacy infrastructure was cited by 32%, compared with 37.1% globally.
The findings suggest that financing and ownership could become bigger management questions as manufacturers move from pilots to wider deployment.
Cybersecurity gains importance as AI expands
Cybersecurity is also high on the UAE manufacturing agenda.
Some 38% of UAE manufacturers identified cybersecurity as a top focus area while scaling AI. That is well above the global figure of 21.6%.
Walid Sheta, President, MEA Zone at Schneider Electric, said manufacturers must ensure that confidence in AI is supported by secure and scalable deployments.
“Cybersecurity, resilience, and return on AI investment are the concerns we hear about most often from customers, and rightly so.”
The focus reflects a broader shift in industrial AI. Manufacturers are connecting AI with operational systems, data and automation. As a result, security becomes part of the deployment decision rather than a separate technology issue.
UAE manufacturing cost structure adds another layer
The study also highlights differences in the UAE manufacturing cost base.
Energy accounts for 11.5% of manufactured goods costs among UAE respondents. The global figure is 13.57%.
Raw materials, however, account for 21.75% of costs in the UAE. That compares with 15.31% globally.
At the same time, UAE F&B manufacturers report losing 15.7% of potential revenue to operational inefficiency. The global figure is 17.1%.
That leaves manufacturers with a clear business case for using AI to improve production efficiency. However, the upfront cost of implementation remains a constraint.
UAE industrial policy supports digital transformation
The findings come as the UAE expands its industrial technology programmes.
The Ministry of Industry and Advanced Technology’s Factory Forward UAE platform is designed to help manufacturers assess digital maturity, identify technology opportunities and access technical and financial support. It also connects manufacturers with technology providers and industry experts.
The initiative builds on the Industrial Technology Transformation Index, which measures the digital maturity and sustainability practices of factories. MoIAT says the index is designed to support technology adoption and provide manufacturers with transformation roadmaps.
Schneider Electric’s study therefore places UAE manufacturers within a wider industrial transformation push. For F&B companies, the next phase will depend not only on adopting AI but also on funding, ownership, cybersecurity and the ability to convert deployments into measurable operational gains.
The Schneider Electric survey was conducted by Censuswide. It covered 100 UAE F&B decision-makers and 676 respondents across 15 countries, including the UK, US, Germany, Saudi Arabia and Egypt.
