AI Evolution From Models to Intelligent Agents in the UAE

The Shift from Foundation Models to Intelligent Agents

The AI landscape is rapidly evolving from a focus on large-scale foundational models to the development of practical, intelligent agents capable of reasoning, adapting, and acting autonomously. According to the AI Index Report 2025, model scale continues to grow, with training compute doubling every five months and datasets every eight. However, the skill gap between top AI models is shrinking, prompting a shift toward smaller, specialized models due to constraints like data availability, computing power, and energy consumption.

Infrastructure: The Backbone of AI Development

Building foundation models requires massive investments in infrastructure, including high-end GPUs, fast networking, and extensive SSD storage. Epoch AI estimates that training the largest models could cost over a billion dollars by 2027. The UAE is addressing these challenges through strategic initiatives by entities like G42, the Advanced Technology Research Council, and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), aiming to build local capabilities and ensure technological self-reliance.

The Rise of Agentic AI

The next frontier is agentic AI, which goes beyond data analysis to perform real-life actions. These systems are context-aware, possess memory, and can set goals, making them ideal for applications in government services, healthcare, and education. The UAE, with its digitally native population and strong tech ecosystem, is well-positioned to lead this transformation. AI is projected to contribute $100 billion to the UAE's GDP by 2030.

Key Takeaways

• Foundation Models: Scaling challenges are driving a shift toward specialized models.
• Infrastructure: The UAE is investing heavily in AI infrastructure to ensure sovereignty and innovation.
• Agentic AI: The future lies in AI that can reason, plan, and act autonomously.
• Economic Impact: AI is set to significantly boost the UAE's economy by 2030.

This transition underscores the UAE's commitment to becoming a global leader in AI, leveraging its strategic investments and forward-thinking policies to integrate intelligent agents into everyday systems.