Saudi Arabia’s Public Investment Fund (PIF) is currently using artificial intelligence beyond a support resource and tool. The country has established technology as a central part of its growth strategy. The country’s transition reveals how it intends to accelerate economic transformation and thus reduce its dependence on oil. Does the country have a chance to consolidate its position as a global benchmark in financial and technological innovation?
AI redefines the way we invest and generates value
Saudi Arabia’s nearly $1 trillion sovereign wealth fund said on Wednesday that artificial intelligence and automation have become embedded across “every layer” of its operation, reshaping not only what it invests in, but how it invests. The shift reflects a broader national ambition to integrate advanced technologies into the heart of the Saudi economy, and to redefine the region’s financial future not through oil, but through algorithms.
In its 2024 annual report, the Public Investment Fund (PIF) described AI as a catalyst that is fundamentally altering the way the state fund makes decisions, allocates capital, and evaluates value. The report said the fund’s assets under management totalled 3.424 trillion riyals ($912.6 billion) at the end of 2024, lower than the 4.321 trillion riyals reported in June, with the change reflecting the use of different accounting standards.
PIF said it had implemented an AI-powered valuation platform to bring greater precision and speed to private market investment assessments. It has also developed a large language model for real-time investment reporting and is using AI tools for asset manager analysis and portfolio optimisation. Tasked with spearheading the kingdom’s economic diversification under Crown Prince Mohammed bin Salman’s Vision 2030 plan, PIF has moved well beyond its early holdings in public equities and infrastructure.
Global portfolio reinforces diversification strategy
In recent years, the fund has taken high-profile stakes in global brands, such as Uber UBER.N, Lucid Motors, and Nintendo 7974 T, while also backing sports ventures including LIV Golf and Newcastle United. At home, it has poured billions into giga-projects such as NEOM, the futuristic city on the Red Sea, and strategic sectors like tourism, logistics, and clean energy.
The PIF and its expansion demonstrate that AI adoption goes beyond optimizing internal processes; it has guided investment decisions in strategic sectors. With real-time analysis, it will be easier to identify opportunities on a global scale with greater agility. These areas, such as electric mobility, entertainment, and renewable energy, directly connect with the economy of the future.
Technology as a central axis
The integration of AI within Saudi Arabia strengthens projects aligned with Vision 2030, particularly gigaprojects. Initiatives like NEOM rely on advanced technologies in transportation, clean energy, and urban management. Companies become showcases of the kingdom’s new positioning on the global stage. The PIF acts as an investor, but also as an agent of structural transformation of the economy.
Saudi Arabia is on a path to repositioning its economy for the long term. The adoption of AI as a structuring element allows the PIF to increase the efficiency of its investments, all while maintaining a medical ecosystem capable of attracting international partners and investors.
Understand the challenges of the billion-dollar bet on AI
Technological advances have brought enthusiasm, but the landscape still requires a balance between ambition and sustainability. While this reliance on algorithms increases efficiency, it still creates risky financial decisions, which may be related to market volatility and data governance.
Artificial intelligence at the heart of its operations reinforces the PIF’s position in the next phase of Saudi development, defined by innovation. The strategy will solidify Saudi Arabia as a strong contender for global power. The resources would be natural, but also technological and financial, and this would be more than enough to pave the way for a more resilient economy, one that’s connected to the demands of the 21st century.
GCN.com/Reuters