Impact of Artificial Intelligence in Influencing Productivity and Strategy Development in Organisations: Case Study of an Energy Company in Saudi Arabia

Abstract

The Kingdom of Saudi Arabia’s Vision 2030 highlights the need for energy diversification and decarbonisation, with Artificial Intelligence (AI) playing a pivotal role in achieving these goals. Despite the growing interest in AI, there is limited research on its specific impact within the Saudi energy sector. This study addresses this gap by investigating the influence of Generative AI (GAI) on productivity and strategy development in a large Saudi energy company. The research aims to analyse how GAI can enhance organizational productivity, support strategic development, and identify potential risks and challenges in AI implementation. The literature review highlights the potential of GAI to improve productivity through predictive maintenance, automation of routine tasks, and process optimization, while also supporting cost leadership and differentiation strategies. The methodology employs a qualitative case study approach, using semi-structured interviews with senior employees to gather insights. The findings reveal that GAI offers significant potential to enhance productivity and strategy development, particularly through improved maintenance practices and innovative energy solutions. However, challenges such as AI hallucinations, integration complexities, cultural resistance, and skills gaps were identified as significant barriers to successful AI implementation. The study concludes by finding that although GAI can be transformative for the Saudi energy sector, careful consideration must be given to addressing these challenges. Recommendations include investing in comprehensive training programs, establishing robust verification processes for AI outputs, and adopting a culturally sensitive approach to AI integration. These findings provide valuable insights for both academic research and practical application, contributing to the successful adoption of AI in the energy industry