70% of UAE consumers use AI to shop, a 44% increase on 2024 numbers
Adyen, the global financial technology platform of choice for leading businesses, today published its 2025 Annual Retail Report, highlighting a significant shift in consumer behavior across the UAE. The report is based on a poll of 41,000 consumers across 28 countries, and shows that for many, AI is a relatively new addition to their shopping habits. More than one in five of UAE respondents (21 per cent) said they had used AI in shopping for the first time in the past 12 months, while 62 per cent said they would be open to using it to make purchases in the future.
Shoppers are responding positively to the experience, with 65 per cent of consumers saying that AI helps to inspire them when buying outfits, meals and other products. More than one in ten (14 per cent) said they get their best ideas for new purchases when using the technology. Meanwhile, two-thirds (66 per cent) said that they wanted to find unique and niche brands through AI – a development that highlights the chance for brands to combine partnerships and cross-selling to drive customer sales.
Gen X leads AI adoption growth
The use of AI in shopping is becoming more common across all age groups in the UAE. Today, 74 per cent of Generation Z (aged 16-27) and 75 per cent of Millennials (aged 28-43) say they use AI when shopping, reflecting year-on-year increases of 45 per cent and 41 per cent, respectively. Among Generation X (aged 44-59), 59 per cent now use AI when shopping – a 49 per cent increase on last year. Adoption is also picking up among older consumers, with 34 per cent of those aged 60 and above now using the technology. Awareness is on the rise as well, with 66 per cent of UAE consumers saying they understand that retailers may be using AI to recommend products to them.
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 look to AI for growth
When UAE retailers were asked how they are planning to increase their revenues in 2025, deployment of AI and technologies was a popular strategy. Forty-one per cent said they would invest in AI to support their sales and marketing activity and 37 per cent would invest in AI to support 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.'
Beyond AI, unified commerce offering is still key
While investment in new technologies is high, retailers continue to focus on unified commerce. Today, 59 per cent of UAE retailers said they currently enable customers to shop seamlessly across online and offline channels. A further 16 per cent of business leaders plan to introduce this in the next 12 months. At the same time, 17 per cent of retailers are looking to enhance the in-store experience by offering exclusive experiences.
The report also highlights that technologies and online experiences are helping brands open up new ways to connect with customers. Among those surveyed, 63 per cent expect to be able to shop across multiple channels – be it via social media, mobile apps or websites. In fact, more than half of UAE consumers said that they use social media as a shopping channel (56 per cent).
Stores still matter
Despite the widespread use of digital platforms, physical retail remains important in the UAE. When asked about their preferred shopping channel, 34 per cent of respondents chose physical stores, compared to 27 per cent who preferred shopping online. Key reasons include wanting to see and feel the product before making a purchase (39 per cent), the ability to try on items before purchasing (36 per cent) and the convenience of taking purchases home right away (26 per cent).
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