In a groundbreaking initiative that aims to place Abu Dhabi at the forefront of global governance, the Emirate has announced plans to become the world’s first fully AI-driven government by 2027. With a substantial budget allocation of approximately $3.54 billion, this ambitious project will leverage cutting-edge technology to redefine how public services are delivered.
On March 21, 2025, during a significant agreement signing, the Abu Dhabi Government partnered with Microsoft and Core42, a subsidiary of the UAE-based tech giant G42. This strategic collaboration is geared towards accelerating the adoption of artificial intelligence across various public service sectors. The partnership emphasizes merging Microsoft’s advanced cloud infrastructure with G42’s AI technology, aiming to foster innovation and improve efficiency in governmental operations.
As part of its digital transformation strategy, Abu Dhabi plans to process over 11 million digital interactions on a daily basis. This initiative is expected to transform public services, making them more innovative and responsive to the needs of citizens. Officials believe that this collaboration marks a pivotal turning point in how the government engages with the public through technology.
Microsoft's CEO, Satya Nadella, heralded the partnership as a new benchmark for the utilization of AI in the public sector, stating that "Abu Dhabi is setting the pace for governments worldwide in embracing transformative technologies." This sentiment reflects the UAE's long-term strategy of positioning itself as a leader in the global AI landscape.
The agreement coincides with other major developments in the region. A recently launched sovereign cloud system aims to further support Abu Dhabi’s aspirations for AI-driven administrative services, laying the groundwork for improved governance fueled by artificial intelligence.
Moreover, this project comes amid increased investments in the energy sector, where the Abu Dhabi sovereign wealth fund, ADQ, has formed a $25 billion partnership with the US firm Energy Capital Partners. This partnership is set to enhance energy generation and infrastructure in the US, catering primarily to the needs of data centers and other energy-intensive industries. As AI capability grows, so too does the global demand for electricity by an expected 70% over the next decade, driven predominantly by advancements in technology.
Furthermore, global electricity demand is heavily influenced by the expanding need for data hosting services. Acknowledging this, Abu Dhabi is making strides in the European market, having pledged $50 billion to the AI sector in France and agreeing to build a data center in Italy.
Notably, Abu Dhabi's investment strategy has included engaging with top-tier technology firms as part of the $500 billion Stargate project, a massive venture involving companies like OpenAI, Oracle, and SoftBank. This project, announced by former US President Donald Trump in January 2025, demonstrates the Emirate’s commitment to leveraging artificial intelligence across various sectors.
In a related vein, Abu Dhabi-backed AIQ, a joint venture between the national oil company ADNOC and Presight, is exploring selling its innovative AI technology, initially developed for the oilfields, to resource-rich nations worldwide. The software has successfully helped ADNOC reduce downtime at drilling sites while enhancing productivity, effectively cutting project timelines from weeks into mere hours. AIQ is currently seeking to establish deals in countries like Albania, Angola, and Colombia.
Recently, ADNOC signed a $340 million contract with AIQ to implement agentic AI technology across its oilfields. The firm leads in utilizing AI that involves processing extensive amounts of data, enabling more efficient hydrocarbon extraction. AIQ’s acting managing director, Magzhan Kenesbai, highlighted adaptive AI's significance in delivering competitive advantages within the rapidly evolving energy sector.
As the UAE continues to carve its niche in the AI realm, the intersection of technology and governance underscores a significant shift in the global landscape. The plans for an AI-driven government reflect Abu Dhabi's ambitious vision for the future. By harnessing advanced technologies, the Emirate hopes not only to improve its internal administrative capabilities but also set a standard that could be followed by governments around the world.
In a region that is rapidly embracing innovations, Abu Dhabi is not just keeping pace but is determined to lead the charge. Its comprehensive approach to integrating AI into public services, investment in critical infrastructure, and global partnerships demonstrates a commitment to transforming its governance model for a new digital age.
As this bold vision unfolds, stakeholders within the UAE and beyond will be looking closely for the implications of these developments on the global stage, particularly concerning governance, technology, and energy management.
