Despite record AI investment, UAE consumers feel brands fail to deliver value for shared data

Business

Despite record AI investment, UAE consumers feel brands fail to deliver value for shared data

Despite significant investments in artificial intelligence (AI), many UAE consumers believe brands are not providing enough value in exchange for their personal data, according to the latest AI in Retail Report from SAP Emarsys.

Now in its third year, the study surveyed more than 200 marketers and 1,000 shoppers in the UAE, uncovering a widening gap between marketing ambitions and customer perceptions. While 82% of marketers said AI is central to their personalization strategies, only 31% of consumers felt that content was tailored to their needs, and just 18% believed they received fair value for sharing their data.

The findings suggest that the challenge lies in infrastructure rather than consumer expectations. According to the report, 69% of marketers said their data is too unstructured to use effectively, and many admitted they could not act on insights in real time. This lack of unified, accessible data leads to fragmented experiences that risk eroding consumer trust and loyalty.

“Brands are dealing with fragmented systems. More than half (64%) of marketers are struggling with ‘dark data’ that is hard to access, even as the pressure to deliver results increases,” said Marwan Zeineddine, Managing Director, SAP UAE. “From the consumer perspective, the value exchange is broken. They share their data but receive little in return, with no clarity on how it is used. That’s where trust breaks down, and loyalty is lost.”

Why trust is declining

The report identifies two key factors undermining consumer confidence:

Opaque data use: Only 35% of consumers expressed high trust in how brands handle their personal information. Consent is often seen as procedural rather than meaningful.
Weak value exchange: Shoppers frequently share preferences, purchase history, and browsing behavior, but in return, they often receive repetitive and irrelevant content.

Without meaningful data activation, SAP Emarsys warns that AI risks being reduced to another impersonal marketing tool that alienates customers.

Engagement-era brands show the way forward

Some companies, however, are using AI to build deeper, more transparent relationships. The report highlights Gibson Guitars as an example of what SAP Emarsys calls “Engagement Era” brands—those leveraging AI not just for efficiency, but for authentic engagement.

“We’re not selling t-shirts, we’re selling guitars,” said Sterling Doak, Head of Marketing at Gibson. “AI helps us personalize with purpose, without losing the soul of the brand.”

By adopting SAP Emarsys solutions, Gibson now generates over 40% of its revenue through automation-led experiences, has doubled engagement rates, and achieved a 50% increase in sales via email campaigns.

According to Zeineddine, these results demonstrate how turning fragmented data into actionable insights can foster transparency, trust, and long-term loyalty.

Looking ahead

As AI adoption accelerates across the region, SAP Emarsys recommends that retailers prioritize transparency in the use of first-party data, ensure consistency across channels, and deliver clear value to consumers.

These insights will also be presented at the upcoming Middle East Retail Forum (MRF) 2025, scheduled for September 3 in Dubai. Younès Ben Maïz, Regional Vice President for EMEA South at SAP Emarsys, will join a panel discussion titled Leading the Future: Empowering Talent and Tech to Drive Retail Transformation, alongside regional industry leaders. He will also co-host a roundtable on emerging AI trends shaping the retail landscape.