Artificial intelligence is rapidly transforming the global venture capital landscape, with Saudi Arabia emerging as a leader in AI adoption for investment operations. The Kingdom's approach is closely tied to its Vision 2030 strategy, driving economic diversification and premium valuations for AI-driven startups, particularly in sectors that reduce oil dependency. Saudi investors leverage advanced digital infrastructure and sovereign wealth funds to gain a competitive edge in deal sourcing and portfolio management, while also collaborating with international partners to address gaps in technical mentorship and talent.
Globally, venture capital firms are integrating AI tools for deal sourcing, due diligence, and portfolio management, resulting in increased efficiency and improved decision-making. However, industry experts emphasize that human judgment remains essential, especially when evaluating founder qualities and long-term potential. As AI funding is expected to double in 2025, the convergence of policy, capital, and technology in markets like Saudi Arabia may provide a strategic advantage in the evolving investment landscape.