Shoppers in the UAE are increasingly using artificial intelligence (AI) to guide their purchases, with new research showing a 44% rise in AI adoption compared to last year.
AI shapes buying habits
According to Adyen’s 2025 Annual Retail Report, 70% of UAE consumers now use AI in their shopping experience. The data, based on a global survey of 41,000 consumers across 28 countries, also shows that 21% of respondents in the UAE began using AI for shopping in the past year. Looking ahead, 62% say they are open to using it in the future.
Consumers cited inspiration as a key benefit of AI, with 65% saying it helps spark ideas for items such as clothing or meals. Additionally, 66% said they want AI to help them discover niche or unique brands, presenting new opportunities for retailers to expand their reach.
Gen X shows biggest growth
AI adoption is rising across all age groups, but the most notable growth is among Generation X. Use among this group rose by 49% in the past year, with 59% now using AI when shopping. Millennials (75%) and Gen Z (74%) continue to lead in usage, while 34% of those aged 60 and above have also started using the technology.
The report also found that 66% of UAE consumers are aware that retailers use AI to recommend products.
Roelant Prins, Chief Commercial Officer of Adyen, said: “Consumers are embracing AI at an unprecedented rate as they discover how this technology is transforming the shopping experience.
“We’re likely entering an era where AI can act as our own personal stylist, curating outfits tailored to individual tastes and preferences. The demographic splits from our research showed some interesting results, especially seeing how older generations have been integrating AI into their shopping habits.”
Retailers investing in AI
AI is now seen as a key tool for growth. Among UAE retailers surveyed, 41% plan to invest in AI to support sales and marketing, while 37% intend to use it for product innovation.
Holly Worst, Vice President of Retail at Adyen, said: “AI is no longer viewed as a future bet – it’s a current imperative for retailers and consumers alike. Earlier this year we launched Adyen Uplift, our AI-powered payment optimization suite that helps businesses increase payment conversion, simplify fraud management and reduce the cost of payments.
“By embracing AI in this way, we can help retailers offer an unparalleled customer experience as ‘good’ shoppers are able to speed through checkout whilst we can intercept fraudulent transactions. It is clear to see why AI has taken the top spot as the most-cited growth enabler for 2025.”
Unified commerce still key
Despite the focus on AI, many retailers continue to prioritise unified commerce. Currently, 59% of UAE retailers enable seamless shopping across online and offline channels, with another 16% planning to introduce this approach within the year. Meanwhile, 17% are investing in in-store experiences to enhance physical shopping.
Stores remain relevant
While digital platforms are popular, physical retail still holds value. The report found that 34% of UAE consumers prefer shopping in stores, compared to 27% who prefer online. Main reasons include the ability to try products (36%) and the convenience of taking items home immediately (26%).
At the same time, 63% of consumers expect to shop across various platforms, including social media and mobile apps. More than half (56%) said they already use social media for shopping.
tanvir@dubainewsweek.com
