Latest news with #2025AnnualRetailReport
Techday NZ
02-06-2025
- Business
- Techday NZ
APAC Retailers Embrace AI Amid Shifting Consumer Preferences
New research from Adyen reveals significant shifts in consumer habits in Asia-Pacific as artificial intelligence becomes increasingly integrated into retail transactions and decision-making processes. The 2025 Annual Retail Report by Adyen examined the behaviour of 41,000 consumers across 28 international markets, including key locations such as Singapore, Australia, Hong Kong, India, Japan, and Malaysia. According to the findings, over a third (38%) of APAC consumers now use AI to assist with shopping. This represents a 39% increase compared to the previous year, with more than one in ten (11%) utilising AI for shopping for the first time during the past 12 months. The report finds AI is perceived positively by users. Nearly two-thirds (63%) indicated that AI helps inspire their purchase decisions, whether for clothing or meals, at a faster rate than other sources. In addition, 62% expressed a desire to use AI to discover unique brands and new shopping experiences, creating opportunities for brands to drive sales through partnerships and cross-selling. Adyen's research also noted that 59% of APAC consumers are open to the idea of making purchases using AI in the future. The adoption of AI is evident across generations. While Generation Z leads in usage—particularly in Malaysia (74%) and Hong Kong (64%)—older groups are showing increased engagement. In Singapore, Generation X and Millennials registered the sharpest rises in AI-powered shopping over the past 12 months at 45% and 28% respectively. The report also found that 30% of those aged 60 and above are currently using AI to support their shopping decisions. Warren Hayashi, President, Asia Pacific, Adyen, said: "The introduction of AI in shopping has created new shopper journeys that are more exciting than ever. From it, we see an emergence of new consumer behaviors — one characterized by personalization and convenience. For retailers, embracing AI isn't just about staying current; it's about meeting evolving consumer expectations and staying competitive in a fast-changing retail landscape." AI is also being viewed as a tool to drive business growth. When asked about strategies for boosting revenues in 2025, more than a third (34%) of APAC retailers identified increased investment in AI to support sales and marketing, product innovation, as well as security and fraud prevention. Hayashi further commented: "Retailers generate vast amounts of payments data through their daily operations, presenting a substantial untapped opportunity. Where AI comes into play is to drive conversions at scale. Building on this potential, we recently launched an AI-powered payment optimisation solution called Adyen Uplift. By training AI on all of the transactions Adyen processes, we help retailers identify genuine shoppers at scale, and fly them through checkout securely and with minimal friction." Concerns over fraud remain pronounced. The report noted that one in three consumers across the region have experienced fraud involving account takeover, identity theft or social engineering. For businesses, the resulting losses from such incidents averaged over SGD $3 million during the last 12 months. The growing prevalence of AI in commerce has heightened consumer unease; 26% of APAC consumers reported increased concern regarding fraud and scams, and one in five avoid enabling their devices to remember payment details because of these fears. Hayashi addressed these issues, explaining: "Besides optimizing revenue, AI could aid in the fraud-fighting efforts of retailers. By training AI on the thousands of transaction data retailers process each day, it can spot anomalies, identify patterns, and predict fraud attempts – ultimately ensuring consumer trust and protecting retailers' hard-earned revenue." Currently, 40% of regional retailers use AI to assist in fraud prevention. Despite a push for digital solutions, APAC consumers continue to value physical stores. The report cites that while 36% of consumers in the region shop via social media, and 46% expect the ability to purchase across various digital touchpoints, physical presence is still important. Forty-two percent prefer both physical and online channels equally, with a further 35% favouring traditional brick-and-mortar outlets. The opportunity to see and feel products (48%), try them on (41%), and take items home immediately after purchase (35%) are the top reasons cited for this ongoing preference. The report also highlights that less than half (46%) of APAC retailers currently offer streamlined omnichannel experiences, though an additional 19% are planning such investments over the coming year. Social responsibility is another theme. A growing segment of APAC consumers now favours retailers with a strong social purpose and charitable initiatives. Correspondingly, 30% of businesses in the region are investing in social impact causes. The research, conducted by Censuswide, involved both consumers and merchants, applying standards set by the Market Research Society and ESOMAR. The data was collected in early 2025, reflecting the most recent trends in technology-led transformation within the retail sector.
Campaign ME
20-05-2025
- Business
- Campaign ME
70 per cent of UAE consumers use AI to shop, Adyen report reveals
Adyen, a global financial technology platform, has published its 2025 Annual Retail Report, highlighting a significant shift in consumer behavior which suggests that 70 per cent of consumers in the country now use AI to shop across the UAE. These findings reveal a 44 per cent increase compared to 2024. 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. '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 of Adyen. 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. 74 per cent of Gen 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 Gen X (aged 44-59), 59 per cent now use AI when shopping – a 49 per cent increase on last year, the report reveals. '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,' said Prins. Adoption is also picking up among older consumers, with 34 per cent of those aged 60 and above now using the technology. According to the report, 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. Ret ai lers 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. 41 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. She explained that retailers that embrace AI can increase payment conversions, 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,' she said. Beyond offering AI to shop , unified commerce is still key While investment in new technologies is high, retailers continue to focus on unified commerce. 59 per cent of UAE retailers said they currently enable customers to shop seamlessly across online and offline channels this year. 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 amid preference of using AI to shop 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). Therefore, shoppers in the UAE embrace AI-supported retail experiences,
Khaleej Times
20-05-2025
- Business
- Khaleej Times
70% of UAE consumers use AI to shop, a 44% increase on 2024 numbers
Seventy per cent of consumers in the UAE now use AI to support their shopping, a 44 per cent increase compared to 2024, a report showed on Monday. 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).
