Chapter 2: AI in retail
Some UAE shoppers find AI helpful, others find it invasive
AI continues to transform how we live, work, and shop. Yet consumer sentiment remains mixed, and retailers must walk a fine line between offering convenience while avoiding intrusiveness. Still, more shoppers are turning to AI assistants like ChatGPT to help them make purchasing decisions.
Finding 01
UAE consumers are conflicted about AI
Consumer sentiment around AI is mixed. While many find retailers’ use of it invasive, most also understand that it's being used to improve their shopping experience. Given consumers' high expectations around personalization, retailers must find ways to give them what they want while respecting their boundaries.
Finding 02
UAE shoppers are turning to AI assistants
AI assistants like ChatGPT are increasingly becoming part of the buying journey, with adoption up 44% since 2024. In the past year alone, more than one in five people (21%) used AI for the first time, and just under two-thirds (62%) said they'd be open to making purchases through AI in the future. Still, concerns around AI reliability remain, and in some cases, those concerns have been justified. Even so, AI is quickly establishing itself as a channel worth watching.
Finding 03
Retailers in the UAE bet big on AI
AI is a top priority for retailers in 2025, and they plan to apply it across the sales cycle. However, retailers should keep in mind that no matter how they use AI, it’s only going to be as effective as the data they use to train it.
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