A growing number of shoppers in the UAE are turning to artificial intelligence (AI) for their retail needs, utilizing the technology to browse, discover, and purchase items ranging from clothing to food. According to a new retail report from global fintech platform Adyen, 70% of UAE residents now employ AI in their shopping activities, marking a significant 44% increase compared to the previous year. Additionally, 21% of consumers reported that they began using AI for shopping within the last year, indicating that this trend is still on the rise.

The report highlights that consumers are increasingly seeking personalized recommendations and curated shopping experiences, which AI can provide in real time through various platforms, including apps, websites, and chat tools. This shift is exemplified by OpenAI’s ChatGPT, which is allowing users to shop in new ways, presenting a challenge to traditional search engines like Google.

Interestingly, while younger generations like Gen Z and Millennials have historically been early adopters of new technologies, the most significant growth in AI usage is being driven by older shoppers. The data from Adyen reveals that 75% of Millennials (aged 28–43) now utilize AI for shopping, alongside 59% of Gen X consumers (aged 44–59), representing a 49% increase over the last year. Furthermore, 34% of shoppers aged 60 and above have also begun using AI tools to assist in their purchasing decisions.

Awareness of AI’s role in retail is also high among consumers, with 66% of UAE residents acknowledging that retailers are employing AI to recommend products. This growing familiarity suggests that shoppers are becoming more comfortable with algorithm-driven suggestions.

Retailers in the UAE are responding proactively to this shift. The report indicates that 41% of retailers plan to invest in AI over the coming year to enhance marketing efforts and increase sales, while 37% intend to use AI to drive product innovation. Additionally, 59% of businesses are already facilitating seamless shopping experiences across both online and offline channels. To remain competitive, 17% of retailers are looking to improve the experience in their physical stores by offering exclusive in-store benefits. Despite the high rate of digital adoption, 34% of UAE residents still prefer shopping in physical stores, primarily for the opportunity to try products or take purchases home immediately.

The shopping habits of UAE residents are rapidly evolving, with over 63% expecting to shop across multiple platforms, including mobile apps and social media. Currently, 56% already leverage social media as a shopping channel, whether for discovering products or making direct purchases.

In conclusion, AI is transitioning from a futuristic concept to a standard element of the shopping experience in the UAE. Whether for outfit inspiration, meal planning, or discovering niche brands, AI is reshaping how residents approach retail. With businesses increasing their investments in technology, shoppers can anticipate even more personalized experiences in the near future.