AI Adoption Doubles as Saudi Internet Penetration Reaches 99.6%
CST says stronger infrastructure is underpinning higher AI adoption and broader use of digital services.
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[Image: Nomita Samaiyar/MITSMR Middle East]
Saudi Arabia’s internet ecosystem has reached a new inflection point. While near-universal connectivity is no longer the headline, the latest Saudi Internet Report 2025 from the Communications, Space, and Technology Commission (CST) suggests the Kingdom is entering a phase where artificial intelligence adoption, digital infrastructure, and online commerce define its digital maturity.
The report shows internet penetration has climbed to 99.6%, making internet access a universal utility across the Kingdom. More notable is what the Saudis are doing online. AI tool adoption among internet users has more than doubled over the past year to reach 45.2%, making generative AI a mainstream digital service.
That shift coincides with increasingly intensive digital engagement. More than 61% of internet users now spend seven or more hours online every day, while mobile phones remain the dominant gateway to digital services, accounting for 99.6% of internet access. Peak internet usage occurs between 9 p.m. and 11 p.m., as digital platforms become a part of the daily routines rather than being confined to work hours.
The findings also reinforce Saudi Arabia’s broader Vision 2030 ambitions to position digital infrastructure as an economic asset.
Average monthly mobile data consumption has reached 53 GB per user—three times the global average—while median mobile download speeds increased to 216 Mbps, placing the Kingdom among the top five G20 countries on that metric. Fixed broadband performance also improved significantly, with median download speeds rising 25% year over year to 151 Mbps.
Infrastructure, however, appears increasingly designed to support services beyond consumer connectivity. The report records 13.85 million Internet of Things (IoT) subscriptions and 99% urban NB-IoT population coverage, reflecting continued investment in smart city applications, industrial automation and connected infrastructure. Total internet traffic reached 69 million terabytes during the year, split evenly between mobile and fixed networks.
Digital commerce is evolving alongside connectivity. Nearly 86% of users now access online banking services, while 76.9% shop online, with 95.3% of purchases occurring through local websites. Apparel remains the largest e-commerce category, but spending is spreading across groceries, electronics and travel services, suggesting greater maturity in Saudi Arabia’s domestic digital marketplace.
Government digital services have also become nearly ubiquitous, with 96% of internet users accessing e-government platforms.
Perhaps the strongest signal of ecosystem growth lies in Saudi Arabia’s internet identity itself. The number of Saudi domain names expanded 18% year over year to approximately 84,000 registrations, indicating that businesses are creating more locally anchored digital assets rather than relying solely on global platforms.
