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UAE sees sharp rise in AI-assisted shopping with 70% adoption rate: Report

UAE retailers are responding to this trend, with 41% planning to invest in AI to support sales and marketing efforts over the next 12 months

UAE consumers using artificial intelligence for shopping
The study found that 65% of UAE consumers using AI say it inspires them when choosing items such as outfits and meals. Image: Shutterstock

Seventy per cent of UAE consumers are now using artificial intelligence to assist with shopping, a 44 per cent increase compared to last year, global financial technology firm Adyen said in its annual retail report published on Monday.

The research, which surveyed 41,000 consumers across 28 countries, found that more than one in five UAE shoppers (21 per cent) had used AI in shopping for the first time in the past year, with 62 per cent open to using it for future purchases.

Millennials aged 28-43 are the most likely to use AI when shopping (75 per cent), while Generation X shoppers aged 44-59 showed the strongest growth, with adoption rising 49 per cent year-on-year to reach 59 per cent, according to the report.

“Consumers are embracing AI at an unprecedented rate as they discover how this technology is transforming the shopping experience,” said Roelant Prins, Chief Commercial Officer of Adyen.

“We’re likely entering an era where AI can act as our own personal stylist, curating outfits tailored to individual tastes and preferences,” he added.

UAE embraces AI shopping

The study found that 65 per cent of UAE consumers using AI say it helps inspire them when buying outfits, meals and other products, while 14 per cent get their “best ideas” for new purchases through the technology.

UAE retailers are responding to this trend, with 41 per cent planning to invest in AI to support sales and marketing efforts over the next 12 months, and 37 per cent looking to deploy AI for product innovation, Adyen said.

Despite the digital shift, physical retail remains important in the UAE, with 34 per cent of respondents preferring in-store shopping compared to 27 per cent who favour online channels. Key reasons include wanting to see products before purchasing (39 per cent), trying on items (36 per cent) and the convenience of immediate purchases (26 per cent).

The report also highlighted the continued importance of unified commerce, with 59 per cent of UAE retailers enabling customers to shop seamlessly across online and offline channels, and a further 16 per cent planning to introduce this capability within the next year.

Social media is gaining ground as a shopping channel, with more than half (56 per cent) of UAE consumers using these platforms to make purchases, the report added.

Adyen, which is listed on the Amsterdam stock exchange, provides payment services for companies including Meta, Uber, H&M, eBay, and Microsoft.

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