Meta to ‘Asharq Al-Awsat’: Messaging Apps Are Saudi Arabia’s New Digital Services Gateway

Success is measured by response speed, accurate resolutions and lower costs, not message volume alone. (Reuters)
Success is measured by response speed, accurate resolutions and lower costs, not message volume alone. (Reuters)
TT

Meta to ‘Asharq Al-Awsat’: Messaging Apps Are Saudi Arabia’s New Digital Services Gateway

Success is measured by response speed, accurate resolutions and lower costs, not message volume alone. (Reuters)
Success is measured by response speed, accurate resolutions and lower costs, not message volume alone. (Reuters)

Saudi Arabia’s vast digital base is positioning messaging apps to move beyond communication and become full-service channels.

Internet penetration in the kingdom has reached 99%, while nine in 10 Saudi adults use WhatsApp daily, according to data cited in a report prepared by BCG.

That daily use is not limited to personal chats. It gives companies and government agencies a ready platform to deliver services inside a single window, from search and inquiry to placing requests, resolving problems and following up.

In an exclusive interview with Asharq Al-Awsat, Fares Akkad, Meta’s regional director for the Middle East and Africa, said messaging is becoming central to Saudi Arabia’s next phase of digital transformation.

“It is evolving from a communication tool into a space where the full journey happens, from finding and using a service to resolving a problem, all within one conversation,” he said.

Plans show scale of shift

The BCG report says 84% of institutions in Saudi Arabia plan to invest in rich messaging technologies over the next five years, putting them ahead of traditional channels such as SMS and email.

Rich messaging moves services beyond one-way alerts. Users can ask a question, receive an answer, request a service, complete a procedure and return to the same conversation when needed, without losing the context of the exchange.

Akkad said the shift reflects a clear change in user expectations. People now expect interaction that is immediate, personal and continuous, rather than moving between call centers, websites and separate apps.

“Legacy systems that rely on one-way messages, call centers with long waiting times and separate channels where context is lost at every transition create friction felt by both sides,” he said.

The trend is not limited to Saudi Arabia. Globally, 72% of internet-connected adults prefer messaging as a primary way to communicate with companies, while 79% contact a company through messages at least once a week.

More than alerts

The core change is the move from using messaging to send notifications to using it as a main service channel.

An organization no longer simply sends a confirmation or update. It lets the user complete the action inside the same conversation.

Akkad said the change goes deeper than communication habits because it affects how services are designed and how people reach them.

“This reflects a structural change in how services are delivered and how interaction is designed across companies, ministries and national platforms,” he said.

In government services, messaging can reduce the need to learn new portals or navigate multiple systems, especially when services are delivered through an app citizens already use and understand.

Akkad said familiar channels “reduce the learning curve and lower barriers to access,” especially for users who may struggle with new portals or systems.

AI handles scale and context

Messaging provides the channel. Artificial intelligence makes it scalable.

AI allows large volumes of conversations to be managed around the clock, while helping systems understand the intent behind a question, provide an answer or escalate the case when needed.

The data shows that 80% of decision-makers believe AI agents will change how customers are engaged.

In practice, those agents can understand user intent, answer frequent questions instantly, provide information in Arabic and English, and refer more complex cases to human employees.

Akkad told Asharq Al-Awsat: “AI manages scale, from routine inquiries and multilingual responses to round-the-clock availability, while human employees remain at the center of cases that require judgment, sensitivity or personal interaction.”

That view aligns with a Digital Government Authority study that described “AI agents as partners to government.” Conversational agents can act as frontline digital employees, answering basic questions immediately and referring cases that need specialist intervention.

But the human role remains essential, Akkad said. Human expertise is still needed in complex situations, in decisions that require judgment and in interactions that cannot be reduced to an automated answer.

More than one billion conversations a day

Global figures show how quickly commercial interaction is moving into messaging apps.

Akkad said more than one million companies currently use Meta Business Agent to respond to customers around the clock.

He said “more than one billion active conversations take place daily between businesses and customers across WhatsApp, Messenger and Instagram,” a sign of growing reliance on these platforms as direct channels for interaction and service delivery.

Akkad said the trend is no longer just about directing a question to the right employee. It is about delivering a more personalized experience from the first moment.

“The vision is for every company to be able to show up for every customer as if it had an unlimited team behind it,” he said.

That scale is changing how institutions view messaging apps. Instead of treating them as an extra channel alongside phone and email, they are becoming part of the operating infrastructure that receives requests, processes them and measures results.

Saudi Post’s SPL as an example

Saudi Post’s SPL shows what messaging can achieve when used at scale.

As e-commerce grew and pressure on traditional channels increased, the organization moved to a model led by message-based interaction.

Today, 90% of customer inquiries are resolved inside the messaging channel. Call center waiting times have fallen by 50%, and operating costs have dropped by 75%.

Akkad said the gains did not come from adding a new channel to an old system. They came from redesigning the entire customer journey.

“The SPL experience shows what can be achieved at national scale, not inside a limited pilot project, but in live, high-usage operations serving the Saudi public,” he told Asharq Al-Awsat.

The figures also show that lower costs and better service do not have to move in opposite directions. In this case, operational pressure fell while answers became faster, information more accurate and the experience simpler for users.

Value lies in outcomes

The success of messaging cannot be measured only by the number of conversations or the speed of the first response. Institutions need to connect the channel to clear operational and business outcomes.

Akkad proposed measuring performance across three levels.

The first is user experience, including response speed, accuracy of resolution and satisfaction levels. The second is operational performance, such as lower costs and the share of inquiries fully resolved inside the channel. The third is commercial or institutional performance.

BCG data shows that institutions using multiple messaging use cases generate 2.1 times higher customer lifetime value and 1.5 times better customer acquisition efficiency.

Akkad said “the most important measurement is the one that links messaging directly to outcomes rather than activity.”

That means asking whether the channel reduces calls, shortens the steps needed to complete a service, improves customer retention and lowers the cost of each transaction or inquiry.

Five capabilities for successful scaling

The BCG report identified five capabilities institutions need to move from limited use cases to integrated service delivery through messaging.

The first is treating messaging as a core service channel and choosing use cases that deliver direct value.

The second is data and technology readiness. An AI agent cannot give accurate answers if information is outdated or scattered across systems that do not connect.

The third is an operating model that allows technology, customer service, marketing and operations teams to work together.

The fourth is partnerships between technology providers, platforms and service operators.

The fifth is a clear measurement framework that links messaging performance to satisfaction, efficiency and growth.

Akkad said these capabilities “will determine which public and private institutions lead the next phase of digital transformation.”

The risk of unready data

AI-backed messaging projects can fail when they are treated as a more advanced version of SMS.

Akkad said using the channel for one-way alerts is not a full strategy. The main value lies in continuous two-way dialogue and in keeping the user in one context from the start of the journey to the end.

The second risk is deploying AI tools before preparing the data they rely on.

If the system cannot access accurate and updated information, it will give weak or incorrect answers, damaging trust.

“If the system cannot show accurate and updated information, the experience is damaged, and this affects trust in ways that are difficult to recover from,” he said.

The third mistake is underestimating partnerships. Delivering conversational service at scale requires coordination between the platform, solution providers and the service provider, as well as the teams managing data, operations and experience.

The Saudi market is moving from having the channel available to redesigning services around it. The success of that shift will depend on how well institutions connect conversations to data, operations and measurement, rather than simply adding another window for communication.



EU Accepts Action Plan by Elon Musk’s X to Become More Transparent

Teens pose for a photo while holding smartphones in front of the X logo. (Reuters)
Teens pose for a photo while holding smartphones in front of the X logo. (Reuters)
TT

EU Accepts Action Plan by Elon Musk’s X to Become More Transparent

Teens pose for a photo while holding smartphones in front of the X logo. (Reuters)
Teens pose for a photo while holding smartphones in front of the X logo. (Reuters)

‌The European Union, which fined Elon Musk's social media network X €120 million ($137.2 million) last year, said on Wednesday it had accepted an action plan by X to comply ‌with transparency ‌rules under ‌the ⁠EU's Digital Services Act.

"The ⁠European Commission has accepted X's action plan to comply with transparency obligations and researchers' access to data ⁠under the Digital ‌Services ‌Act," it said in ‌a statement.

"The approved ‌measures represent an important step in enabling researchers, civil society and the public ‌in general to gain more transparency into ⁠X's ⁠systems, in particular to monitor X's systemic risks and to assess the platform's broader impact on its users and European society as a whole," it added.


China's DeepSeek to Raise Fresh Capital at $74 Billion Valuation Ahead of Onshore IPO

FILE PHOTO: A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo/File Photo
TT

China's DeepSeek to Raise Fresh Capital at $74 Billion Valuation Ahead of Onshore IPO

FILE PHOTO: A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo/File Photo

Chinese AI startup DeepSeek is planning to launch a fresh fundraising round at a valuation of about 500 billion yuan ($74 billion) ahead of a potential mainland initial public offering, two people with knowledge of the matter said.

The plan comes just weeks after the Hangzhou-based company, which drew global attention with its low-cost AI models in 2025, raised about $7.4 billion in June a post-money valuation of about 450 billion yuan, the people said.

The back-to-back fundraising plans underscore strong investor appetite for one of China's most closely watched AI companies, but also point to the rising costs of competing in AI, which requires large amounts of computing power, data-center capacity and engineering talent.

DeepSeek is looking to raise as much as 50 billion yuan in the new funding round, according to a third person briefed on the ⁠matter.

It has also started ⁠early deliberations on a potential IPO on Shanghai's Nasdaq-style STAR Market, the three sources and two other people with knowledge of the plan said.

The company has set an internal target to complete an IPO filing this year, one of them told Reuters.

All the people declined to be identified because the information is not public. The fundraising and IPO plans are at early stages and terms and timetable may change, they said.

DeepSeek did not immediately respond to a request for comment.

Bloomberg News first reported on Tuesday ⁠that DeepSeek was preparing for a possible IPO filing, while the Financial Times reported that the company was weighing a fresh fundraising round at a valuation of at least 480 billion yuan.

DeepSeek shook global technology markets last year after releasing models that appeared to rival leading US systems at lower training and operating costs.

Soon after its maiden fundraising round in June, DeepSeek said it planned to double staff across departments, including in areas such as data centers and AI agents, systems capable of performing tasks with limited prompting.

Some of those initiatives will require significant capital expenditure. Reuters reported earlier this month that DeepSeek was looking to develop its own AI inference chip and had discreetly increased hiring of chip-design engineers for the project.

DeepSeek had long stood out in China's AI sector for rejecting outside ⁠funding. Founder Liang Wenfeng ⁠had largely bankrolled the company using his quantitative hedge fund High-Flyer before its recent external financing, sources previously told Reuters.

But the cost of staying at the frontier of AI has risen sharply, forcing a change in strategy.

DeepSeek has in the past year faced stiff competition at home from tech giants including ByteDance and Alibaba, as well as well-funded AI startups such as Z.ai, Moonshot, and MiniMax.

In the June funding round, DeepSeek founder Liang personally committed 20 billion yuan, while Tencent Holdings and battery giant CATL chipped in 10 billion yuan and 5 billion yuan respectively to become the largest external shareholders, Reuters reported at the time.

Other investors include China's national AI fund, gaming developer NetEase and e-commerce giant JD.com , as well as investment firms IDG Capital, Loyal Valley Capital, Monolith Management and Shixiang Capital, according to sources and media reports.

The participation of the state-backed AI fund highlighted DeepSeek's strategic importance to Beijing's efforts to build domestic AI champions and reduce reliance on foreign technology.


Generative AI’s Power Sparks Fears of Dumbing Humans Down

An AI sign is seen at the World Artificial Intelligence Conference in Shanghai, China July 6, 2023. (Reuters)
An AI sign is seen at the World Artificial Intelligence Conference in Shanghai, China July 6, 2023. (Reuters)
TT

Generative AI’s Power Sparks Fears of Dumbing Humans Down

An AI sign is seen at the World Artificial Intelligence Conference in Shanghai, China July 6, 2023. (Reuters)
An AI sign is seen at the World Artificial Intelligence Conference in Shanghai, China July 6, 2023. (Reuters)

Generative AI chatbots capable of writing emails and computer code, translating, organizing a trip or coming up with gift ideas are now readily available, prompting some to ask whether human brainpower could suffer for lack of use.

A simple natural-language prompt is usually enough to draw a useable response from a service like ChatGPT or Claude, with the effects making themselves felt in schools and universities, workplaces from offices to courtrooms and our personal lives.

Recent scientific studies suggest there could be harmful consequences to farming out cognitive tasks to AI.

They highlight memory, decision-making and critical thinking as particularly at risk.

One American-British study of 1,222 people, still under peer review, found that using AI tools to solve arithmetic or reading comprehension exercises improved participants' performance in the short term, but in the long run diminished their results and their willingness to keep trying when the tools were unavailable.

"These findings are particularly concerning because persistence is foundational to skill acquisition and is one of the strongest predictors of long-term learning," the authors wrote.

AI's ability to conjure up speedy responses to all kinds of questions "removes learning opportunities" from users, said Carnegie Mellon University doctoral student Grace Liu, the article's main author.

"What makes AI particularly concerning is that it's not a tool designated for one specific kind of activity. It's something that can be used across pretty much any intellectual, reasoning, and cognitive activity."

The technology's adaptability to different kinds of problems sets it apart from previous waves of computerized aids.

Electronic calculators, for instance, may have helped users solve equations, but left the method and reasoning process in human hands.

- Saving energy -

One 2025 MIT study went viral for its finding that students using generative AI to write essays displayed less critical thinking capability.

Other research has pointed the same way, highlighting what has come to be called "cognitive offloading" -- or even "cognitive surrender".

"Human beings have a strong tendency to save energy," said Johann Chevalere, a researcher in social and cognitive psychology at France's publicly-funded CNRS institution.

"In daily life, we often use strategies that get us to the heart of the matter quicker, without necessarily taking the time to study in depth the information we need to process, as this can be cognitively costly," he added.

Generative AI use could strengthen this tendency, Chevalere said.

"If there are activities you never do, the brain -- which works by saving energy -- won't go to the trouble of maintaining connections that aren't being used."

- Encouraging reflection -

Under pressure from critics, generative AI developers have begun building so-called "Socratic" functions into their models, which for now remain mostly aimed at students.

In this mode, chatbots do not simply provide the answer, instead offering hints and asking questions to stimulate users' thinking.

Examples include the "study mode" built into OpenAI's ChatGPT, or "guided learning" in Google's Gemini.

US software giant Microsoft told AFP it had built warnings about the risk of mistakes into its Copilot models.

The AI also reminds users to check the information it provides, just one of several measures designed to keep them actively and critically engaged with its responses.

"The risk of excessive cognitive offloading is real, especially if AI is used to automate tasks that are also valuable for developing skills," Microsoft said, adding that users have to be trained to use the tools correctly.

For now, there is a lack of large-scale, long-term studies to judge the true impact of the new technology on human brains, researchers agreed.

Until they are available, "it's up to us to use AI in a smart way," Chevalere said.

"We'll adapt to this technological revolution just as we have to the previous ones."