Amid a rapidly shifting global landscape defined by geopolitical uncertainty, environmental change, and accelerating technological disruption, one transformation stands above the rest: the rise of Generative AI and its evolution into agentic systems, says a new study by global consultancy Bain & Company.
Yet, for business leaders, technology alone isn’t the story. It’s how organisations harness it to build their next engines of growth.
As Bain & Company highlights, companies that pair GenAI-driven innovation with bold 'Engine 2' strategies, creating new business models alongside reinvented cores, are emerging as the true architects of resilience and future competitiveness.
"Generative AI is creating entirely new ways of doing business while reshaping existing models at their core. True innovation now means balancing both, building on what works and exploring what’s next. Organisations that embrace ‘Engine 2’ strategies will be best positioned to capture growth while redefining their industries," said Sami Abdul Rahman, Partner at Bain & Company Middle East.
Bain’s research shows that companies which navigate turbulence most successfully are those that expand beyond their legacy models by building their Engine 2: innovative new businesses designed to capture future opportunities.
Already, 67% of the world’s top 100 companies are Engine 2 innovators, setting a clear direction of travel.
This dynamic is especially visible in the GCC. In Saudi Arabia, almost 75% of government entities score at or above 'proficient' on AI readiness indices, with over 40% actively experimenting today, many already reporting improved service delivery.
On the private sector side, the signals are even stronger: 95% of Saudi companies view AI as crucial for institutional success, compared with 87% globally.
Moreover, 92% of CEOs in the Kingdom believe Generative AI will be systematically embedded within their platforms within three years, far outpacing the global average of 78%.
"AI adoption in the GCC is moving faster than in many other regions, reflecting both government vision and private sector ambition. The dual effect of reinventing existing business models while simultaneously creating new ones is where Engine 2 opportunities become most powerful. The GCC has the potential to set global benchmarks for how to lead through disruption," said Jack Nolan, the Senior Manager at Bain & Company Middle East.
The implications are clear. Generative AI is enabling entirely new business models while redefining established ones.
In fact, 56% of global executives expect GenAI to significantly alter product differentiation in their industries, demonstrating that innovation today is as much about reimagining the core as it is about creating the new. This dual transformation is where Engine 2 opportunities become real and scalable.
In times of turbulence, the leaders who thrive are those who think future-back, invest boldly and anticipate disruption rather than react to it.
Whether government entities seeking to strengthen national competitiveness or private-sector players aiming to redefine their industries, the path forward is clear. Embrace innovation as a core strategy, put AI at the center of your growth engines, and build the agility to scale what works.
"The decade ahead will reward those who act with intent, who create their own clarity rather than waiting for it to emerge," stated Nolan.
"For leaders across the GCC, this means moving decisively to embed AI, scale Engine 2 opportunities, and invest in the capabilities that will define the future of competitiveness," he noted.
"Those that diversify into adjacencies, reimagine their core, and place AI at the heart of their strategies will be best positioned to thrive. The future belongs to innovators, and the time to act is now," he added.-TradeArabia News Service
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