AI Makes Up About a Quarter of Software Spending in Pemo's UAE SME Index

Almost three in ten businesses in Pemo's UAE sample paid for AI tools in Q3 2026, with Anthropic attracting the highest AI spending in most sectors.

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AI has been wrought with words like “future potential” and “over-valued”, with Tillions in valuation, yet only Billions in revenue. The gap in the zeros will close, but will revenue scale up to the valuation?

Tracking this, PEMO, a UAE spend management platform, uses anonymized customer card transactions in its first SME Spend Index to track AI spending alongside advertising and other expenses. And the numbers are promising.

Pemo's business customer base spent five times higher on AI in the 3rd quarter of 2026 YoY. Advertising spending fell by a third. They also reported that AI spending between that group rose to four times the level of previous years, while the share of businesses paying for AI rose from 21% to 35%. 

Across the Q3 sample, 29% of businesses paid for at least one AI tool. Median monthly spending among paying businesses was AED 268. More businesses paid for AI than for hotel stays (17%) or flights (16%). AI remained a small part of overall card spending, at 1%, but accounted for about a quarter of software spending.

A Different Spending Pattern Across Sectors

Technology companies had the highest proportion paying for AI, at 50%, and the highest median monthly spending among AI-paying businesses, at AED 880. Marketing agencies followed, with 46% making AI payments.

The ranking changes when spending is measured as a share of recorded card expenditure. AI accounted for 6% of marketing agencies' card spending, compared with 5% for technology companies. Technology firms therefore had a higher rate of paid uptake, while marketing agencies committed a larger share of their recorded spending to AI.

The index also recorded payments to AI vendors among 38% of real estate firms and 35% of professional services businesses. The proportions were lower in construction and hospitality, at 17% and 16% respectively.

Anthropic Leads AI Spending in Most Sectors

Anthropic (Claude), attracted the most AI spending in most sectors, according to Pemo. The index also identified differences between Anthropic and OpenAI (ChatGPT).

Pemo reported Anthropic as the leading provider in technology, real estate and professional services, while OpenAI led in media, events, healthcare and construction.

"This first edition tells a clear story. AI has moved from a talking point to a line in the budget for a growing number of businesses, and SMEs are rethinking where their money goes as a result," said Ayham Gorani, Pemo's co-founder and CEO.

Methodology and Limitations

Typical spending is the median among businesses paying for AI, providing a benchmark for that group. Year-on-year category comparisons use businesses active in both quarters, helping separate spending changes from growth in Pemo’s customer base.

The index tracks Pemo card payments to identified AI vendors, excluding free tools, bundled AI and payments elsewhere. Sample thresholds and outlier controls reduce the influence of individual customers, but the findings are not representative of all UAE SMEs. They measure paid AI purchasing, rather than total AI use or proven business benefits.

Key Takeaway

The findings point to AI becoming a meaningful software expense within Pemo’s customer base, with purchasing patterns varying across industries and providers. The broader signal is a growing financial commitment to paid AI tools. Whether that spending delivers productivity gains or better returns remains a separate question that the index cannot answer.

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