Published Date : 07/06/2025
Artificial Intelligence (AI) entered mainstream public consciousness with the release of OpenAI’s ChatGPT in November 2023. Since then, governments across the world have been actively working to regulate and tame AI. Countries such as the United States (US), Canada, the United Kingdom (UK), India, Germany, and France have adopted hybrid frameworks combining both government and private sector efforts for AI regulation, innovation, and development in their respective territories. As is customary in global politics, these developments have become a race to the top. Given AI’s implications on national security, media discourse is inundated with growing competition between the US and China. At the same time, AI is also enabling new avenues of global collaborations and cooperation, exemplified by partnerships such as the European Union (EU)-US Administrative Arrangement on Artificial Intelligence for the Public Good.
Amid this climate, the United Arab Emirates’ (UAE) AI ministry-led grand vision includes 8 strategic objectives that explicitly identify and contribute to its state-centred purpose of ‘being the leader’ in the global techno-political landscape by offering avenues of global cooperation and the public good. Objective 2, in particular, expresses the UAE’s ambition to strengthen its competitive advantage in key sectors—namely, resource and energy, logistics and transport, and tourism and hospitality—through AI development.
Within the tourism and hospitality sector, the UAE’s strategy includes developing AI technologies that can predict tourists’ preferences and provide customised services. At first glance, this may not appear directly relevant to the purpose of ‘inter-state’ cooperation. However, in practice, it significantly benefits the UAE’s tourism diplomacy as soft power. Engaging in tourism and hospitality enhances the travel experience, contributing to destination branding. It not only reinforces a positive image but also positively impacts the host country’s economy. For instance, Abu Dhabi’s Tourism Strategy 2030, part of its broader economic strategy, witnessed a 26 percent rise in international visitors in 2024, and is looking forward to future international collaborations and entertainment projects such as World Abu Dhabi’s Harry Potter World. This signals Abu Dhabi’s openness and cultural engagement.
Furthermore, soft power often operates by capturing the global imagination, where a country becomes symbolically linked to a cultural product—South Korea with K-pop or Japan with Anime. The UAE has consciously invested its soft power by hosting the Expo 2020 and by branding Dubai as an ‘influencer capital’. As a result, it is beneficial for the states to develop their tourism industries, soft power, which can translate into economic and political gains. For example, Thailand’s tourism diplomacy extended visa-free travel for Chinese citizens—a move readily reciprocated by China, resulting in a bilateral agreement of mutual visa exemption (2024). Refining tourism and hospitality experiences through AI can create long-lasting positive impressions among international visitors in the destination state. This has the potential to enhance the tourists’ perception of the area in an enjoyable way, ultimately fostering more profitable interstate relations with the UAE. This aligns with the UAE’s broader strategic goal of developing leadership and a favourable image in the global arena.
In logistics and transport, the UAE seeks to use its assets, management companies, and airport infrastructure as a testing ground for AI solutions to address global challenges such as air traffic management, baggage handling, aeroplane boarding, and airspace congestion. Many countries, such as the US, Canada, and India, face a decreasing number of air traffic controllers. Moreover, the absence of standardised global traffic rules for coordination exacerbates delays, flight cancellations, and increased safety concerns for passengers. Additionally, the current inefficient baggage handling process causes travellers’ luggage to go missing or get damaged, contributing to the overall unpleasant traveller experience. Nonetheless, AI offers promising solutions. For instance, with AI integration, airport authorities can find the shortest path for baggage transportation. These systems can improve baggage tracking via enhanced luggage classification systems. For example, “ALIX™ (Augmented Luggage Identification eXperience), IDEMIA Public Security’s solution empowered by artificial intelligence (AI) and Biometrics, helps digitalise and automate the luggage identification process by providing each bag with an augmented digital luggage tag.” It enhances the airport’s ground operations by speeding up the identification of luggage, including misplaced and lost items, through the use of images. On a broader level, the entire system of flying affects the movement of people and goods across nations—a key element of globalisation which shapes everyday tourism diplomacy among states.
By offering its assets and infrastructure to test AI-driven solutions, the UAE not only opens avenues for collaboration with other states facing similar challenges but also enhances its prestige, reinforces its reputation for reliability, and strengthens its position as an innovation hub among both state actors and global travellers through tourism diplomacy.
While the tourism and logistics sectors provide a clear map for strengthening overall globalisation, inter-state cooperation, and soft power of the UAE, the resource and energy sector has the potential to contribute to the global public good, particularly in the context of climate change. According to the objective details, the UAE is the world’s fifth-largest oil exporter while transitioning to renewable sources of energy and is also working on water desalination. In this case, the UAE is planning its proof-of-concept AI (e.g., Energyai by Adnoc) that can provide estimates about the demand and supply of energy, optimize resource allocation, and enhance sustainability.
Q: What is the UAE's AI strategy?
A: The UAE's AI strategy includes 8 strategic objectives aimed at becoming a leader in the global techno-political landscape. These objectives focus on strengthening competitive advantages in key sectors like resource and energy, logistics and transport, and tourism and hospitality through AI development.
Q: How does AI benefit the tourism and hospitality sector in the UAE?
A: AI technologies in the UAE's tourism and hospitality sector can predict tourists' preferences and provide customised services. This enhances the travel experience, contributes to destination branding, and reinforces a positive image of the UAE, boosting its soft power.
Q: What is the significance of the UAE's soft power in global diplomacy?
A: The UAE's soft power, enhanced through AI in tourism and hospitality, helps create a positive global image and fosters more profitable interstate relations. This aligns with the UAE's strategic goal of developing leadership and a favourable image in the global arena.
Q: How does AI improve logistics and transport in the UAE?
A: AI in logistics and transport helps address global challenges such as air traffic management, baggage handling, and aeroplane boarding. AI solutions can improve baggage tracking, optimize air traffic, and enhance overall airport operations, contributing to a more efficient and safe travel experience.
Q: What role does AI play in the UAE's resource and energy sector?
A: AI in the UAE's resource and energy sector helps in optimizing resource allocation, providing estimates about energy demand and supply, and enhancing sustainability. This is particularly important in the context of climate change and the transition to renewable energy sources.