Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?

Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?
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Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?
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Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?
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Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?
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Updated 15 October 2025
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Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?

Beyond ‘Client Zero’: Can Saudi Arabia adopt IBM’s AI approach?

In the ever-growing landscape of artificial intelligence, organizations and businesses strive for reliable technology capable of modernizing their applications, safeguarding data and streamlining workflows. Recognizing this need, IBM has taken a unique approach to ensure efficiency and trust in their solutions by becoming its own first use case through an approach the company calls “Client Zero.”

Through this strategic approach, IBM transformed its own processes and systems into test cases before offering these technologies to external clients. This self-experimentation allows IBM to rigorously validate the efficacy, reliability, and security of its AI solutions under enterprise-scale real-world conditions. By doing so, IBM instills confidence in potential customers about the robustness and practicality of its technology, thereby setting a benchmark for industry standards.

By reimagining its operations with AI, the company set itself a clear goal, in the words of CEO Arvind Krishna: to become the world’s most productive enterprise.

IBM’s Client Zero approach transformed its business using their own portfolio of hybrid cloud, AI, and automation tools. Playing a key role in the company’s Client Zero story is IBM watsonx Orchestrate, a solution that helps create, deploy and manage AI agents to automate processes and workflows.

“We are transforming our enterprise operations using technology and embedding AI across more than 70 workflows, leveraging our own IBM software solutions across hybrid cloud automation and AI to drive competitive advantage. What differentiates IBM is the breadth of our AI offerings, with an innovative technology stack and consulting business at scale and our ‘client zero’ lens,” said Krishna.

watsonx Orchestrate: the engine of transformation

Functioning as a single hub, watsonx Orchestrate brings together AI agents, digital assistants, and low-code to no-code tools to help organizations build, deploy, and scale automation quickly.

The solution integrates with more than 100 enterprise applications and comes preloaded with a catalog of AI agents for HR, sales, procurement, IT support, and more. It reduces manual work, accelerates decisions, and boosts efficiency across functions.

For IBM itself, the results have been striking:

  • $4.5 billion in productivity gains by year-end 2025
  • 3.9 million employee hours saved in 2024 alone
  • 40 percent cut in operational budgets through tools like AskHR
  • $18 million in IT cost savings while maintaining round-the-clock support

Orchestrating efficiency: AskHR and AskIT in action 

In the dynamic world of business, efficient management and seamless operations are paramount. IBM’s innovative solutions, AskHR and AskIT, are redefining these areas by leveraging the power of AI. AskHR leverages watsonx Orchestrate’s AI capabilities to provide expeditious and precise responses to a wide array of HR-related queries. By doing so, it simplifies the HR management process, saves time, and fosters a more positive and responsive work environment.

Since its introduction, AskHR has showcased significant achievements. In 2024, AskHR handled more than 11.5 million interactions; 94 percent of those were contained within the platform. That means out of all the questions that were asked, only six percent needed to be routed outside of AskHR to a specialized HR partner for assistance.

Also built with watsonx Orchestrate, AskIT delivers immediate solutions to complex IT issues. This not only reduces system downtime but also ensures optimal performance of your technological infrastructure, thereby enhancing overall productivity.

AskIT is trained on 80 percent of the IT issues the company faces most frequently and covers more than 200 common support topics in more than 40 languages. 

Moreover, the integration with watsonx Orchestrate enables both AskHR and AskIT to learn and adapt over time, improving their responsiveness and accuracy. 

Looking forward, IBM plans to introduce finance agents to this ecosystem to further extend these benefits to financial management, positioning the company at the forefront of AI-driven enterprise solutions.

Testing innovation from within

IBM’s transformation was not confined to technology. It actively engaged employees by launching company-wide innovation challenges, encouraging staff to propose ideas to simplify daily tasks. Nearly 170,000 employees participated in the 2025 “IBMer watsonx Challenge,” designed to give employees hands-on experience with the company’s AI technology. 

Another distinctive aspect of IBM’s approach is its reliance on smaller, specialized language models trained on enterprise data rather than generic large models. This ensures higher accuracy, reduced risk of AI “hallucinations,” and outputs that are tailored to business needs.

The broader outlook

An IBM Institute for Business Value study, “Orchestrating agentic AI for intelligent business operations,” highlights the urgency executives are placing on AI-driven automation:

  • 80 percent cite automating global business services as a strategic priority
  • 86 percent say AI agents will make process automation and workflow reinvention more effective by 2027
  • 75 percent say AI agents will execute transactional processes and workflows autonomously in the next two years

Based on the same study, executives who were surveyed forecast measurable improvements across global industries by 2026:

  • A 24 percent rise in financial forecasting accuracy
  • A 35 percent boost in HR productivity
  • Over 40 percent improvements in procurement efficiency
  • Up to a 50 percent increase in customer satisfaction metrics

A blueprint for AI-powered growth

IBM’s Client Zero approach shows that AI transformation is not just about deploying new technologies — it is about reshaping how organizations operate and how employees engage with their work. The company’s success provides a roadmap for businesses and governments seeking to capture AI’s full potential.

For Saudi Arabia, already accelerating its digital agenda, IBM’s model offers both proof of concept and a practical framework. By combining global expertise with local partnerships, IBM can support the Kingdom’s journey into an era of AI-driven growth and innovation.


Lulu reports $6bn revenue in 9 months; profit up 7.5%

Lulu reports $6bn revenue in 9 months; profit up 7.5%
Updated 14 November 2025
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Lulu reports $6bn revenue in 9 months; profit up 7.5%

Lulu reports $6bn revenue in 9 months; profit up 7.5%

Lulu Retail Holdings PLC, the largest pan-GCC full-line retailer, has announced its financial results for the nine-month period that ended on Sept. 30.

Key highlights

  • 9M 2025 revenue of $6 billion, +4.7% year-on-year
  • Q3 2025 revenue of $1,896 million, +2.0% year-on-year 
  • EBITDA for 9M 2025 increased to $598 million, +5.5% year-on-year and margins improved by 8 bps over the prior period
  • Net profit from continuing operations increased 7.5% year-on-year to $163 million for the first three quarters
  • Six new stores opened in Q3 2025, taking the total to 13 in the first nine months. A further three opened in October 2025
  • Continued growth in e-commerce channel with Q3 2025 revenues increasing by 32.4% year-on-year
  • 9M 2025 margins benefited from 6.4% growth in private label business, as customers continue to seek value products
  • Half a million Loyalty members added in Q3 2025, loyalty-linked sales climbed to 71.8%

Saifee Rupawala, Lulu CEO, said: “Amidst a challenging grocery retail environment, Lulu continues to show resilience as we execute on our growth strategy. Year-on-year customer count growth of almost 5% demonstrates the strong appetite for Lulu’s value to premium offering. Nine months into the year, our store rollout program remains on track and like-for-like sales are positive in all our countries except Bahrain.

“As customer preference for online channels continues to grow, Lulu is investing in our e-commerce offering, which is scaling at a rapid rate. Furthermore, we are evolving our customer offering with a trend towards smaller stores and a disciplined rollout programme. Combined with internal efficiency measures, the decisions we are taking today will help us to continue to be the leading pan-GCC full-line retailer in the years to come.”

Q3 2025 revenue totaled $1,896 million, +2.0% year-on-year. Overall 9M 2025 revenue of $6.0 billion represents a 4.7% increase year-on-year. Whilst like-for-like sales stand at +2.5% for 9M 2025, in Q3 2025 like-for-like sales declined 1.0%. In the quarter, customer count increased, although average basket value declined, indicating smaller spend per visit despite higher footfall.

Sales growth has been led by high demand for fresh food and electrical goods. Fresh food demand has been supported by Lulu’s growing e-commerce channels. This growth has been partially offset by slower demand for lifestyle goods.

E-commerce continues to scale with year-on-year growth of 32.4% in Q3 2025, aligned to 33.6% year-on-year growth for 9M 2025. Lulu’s partnerships with aggregators remain a significant source of revenue growth, but investments in the Company’s own offering is seeing high growth in order volumes.

Private label products remain in high demand as consumers demonstrate ongoing price sensitivity. This is reflected in volumes growing at a faster rate than sales. During the quarter, private label sales increased 6.2%, taking penetration to 30.6%.

Gross profit increased 3.1% in Q3 2025 to $449 million. This exceeded the revenue growth rate as gross margin increased 26 basis points, as the high-margin fresh food category saw strong growth. EBITDA of $180 million in Q3 2025 represented broadly flat margins year-on-year. Similarly, net profit margins for Q3 2025 were also flat year-on-year, with $36 million reported for the period.

The company’s balance sheet remains stable and strong. Net debt of $2.6 billion equates to an overall net debt/EBITDA position of 3.2x and 1.4x excluding lease liabilities, which is similar to prior periods.

During Q3 2025, Lulu opened one hypermarket, three express and two mini markets in the UAE, KSA and Kuwait, adding a total retail space of 18,047 square meters. This takes Lulu’s total retail space gross additions to approximately 49,428 square meters during 2025. Three stores were opened in October and a further four are scheduled for November and December, taking total openings to 20 for the year. Two stores were closed in the quarter, one express store in the UAE and a mini market in KSA. Over the next three years, our opening programme has been reviewed and now comprises 50 openings split roughly equally between the UAE, KSA, and our other GCC markets.

The company is evolving to meet the challenges of the changing retail landscape in KSA. Online and quick-commerce platforms are scaling quickly while value-focused players expand their footprint, intensifying competition across channels. Lulu continues to selectively expand our store network in high-potential catchments, while simultaneously scaling our own e-commerce platform.

In addition, a number of strategic initiatives have been launched, including smarter promotional mechanics, reducing wastage in our fresh food category and pursuing cost optimization across the network. Additionally, we are expanding partnerships with aggregators to widen our reach and customer proposition.

E-commerce sales increased quarter-on-quarter, now representing 6.4% of total retail sales in Q3 2025. Lulu's online order volumes have increased by 70% in the first nine months of the year, reflecting growing customer adoption and engagement. 102 stores are omni-channel enabled, including 60 express stores offering 30–45 minute delivery, strengthening our fast-commerce capabilities.

Founded in 1974, Lulu Retail, together with its subsidiaries, is the largest pan-GCC full-line retailer by selling space, sales and number of stores, operating 263 hypermarket, express and mini-market stores across the six GCC countries.

The group also operates a growing ecommerce presence through its mobile app, webstore and partner channels. To serve more than 690,000 daily shoppers from 130 nationalities every day, the Group sources products from 85 countries, enabled by an on-the-ground sourcing presence in 19 countries.

The group’s strong brand recognition and trust among consumers in the GCC is enabling the growth of its existing stores, expansion of its store network and elevated loyalty across its customer base.