Technology

Artificial intelligence (AI) is becoming a staple in the UAE’s retail landscape, with 70% of consumers now using AI tools to enhance their shopping experience—a 44% increase from 2024—according to Adyen’s newly released 2025 Annual Retail Report.

The global financial technology firm conducted a survey involving 41,000 consumers across 28 countries, revealing that AI is significantly shaping consumer behavior and retailer strategies in the UAE. Among the standout findings, Millennials emerged as the largest AI-using demographic, with 75% utilizing the technology while shopping, closely followed by Gen Z (74%). Notably, AI usage among Gen X (ages 44–59) saw a 49% year-on-year increase, reaching 59%.

The report also notes that 65% of UAE consumers find AI inspiring when choosing items such as outfits or meals, while 14% credit it for sparking their best purchasing ideas. Additionally, 66% of respondents expressed interest in discovering unique and niche brands through AI recommendations, indicating a growing preference for personalized and curated experiences.

"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 at Adyen. "We’re likely entering an era where AI can act as our own personal stylist, curating outfits tailored to individual tastes and preferences."

Retailers are also responding to the shift. Forty-one percent of UAE businesses plan to invest in AI over the next year to support sales and marketing efforts, while 37% aim to use it for product innovation. Holly Worst, Vice President of Retail at Adyen, emphasized the role of AI in operational efficiency, citing the launch of Adyen Uplift—an AI-powered suite that optimizes payments and detects fraud.

Despite the digital shift, unified commerce remains a priority. Currently, 59% of UAE retailers offer seamless shopping across both physical and digital platforms, and 16% intend to follow suit within a year. Moreover, 56% of consumers in the UAE now shop via social media, reflecting a broader expectation (63%) for cross-channel shopping availability.

However, physical stores remain relevant. A third of UAE consumers (34%) still prefer shopping in person, drawn by the ability to see and try products and the immediacy of taking items home.

Adyen’s findings underscore the rapid transformation of retail in the UAE, fueled by AI integration and the blending of online and offline experiences, marking a pivotal shift in how consumers interact with brands.

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