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 findings show that 70% of consumers in the country now use AI to support their shopping, a 44% 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%) said they had used AI in shopping for the first time in the past 12 months, while 62% said they would be open to using it to make purchases in the future.
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% of Generation Z (aged 16-27) and 75% of Millennials (aged 28-43) say they use AI when shopping, reflecting year-on-year increases of 45% and 41%, respectively. Among Generation X (aged 44-59), 59% now use AI when shopping – a 49% increase on last year. Adoption is also picking up among older consumers, with 34% of those aged 60 and above now using the technology. Awareness is on the rise as well, with 66% of UAE consumers saying they understand that retailers may be using AI to recommend products to them.
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 percent said they would invest in AI to support their sales and marketing activity and 37% would invest in AI to support product innovation.
Beyond AI, unified commerce offering is still key
While investment in new technologies is high, retailers continue to focus on unified commerce. Today, 59% of UAE retailers said they currently enable customers to shop seamlessly across online and offline channels. A further 16% of business leaders plan to introduce this in the next 12 months. At the same time, 17% 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% 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%).
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% of respondents chose physical stores, compared to 27% who preferred shopping online. Key reasons include wanting to see and feel the product before making a purchase (39%), the ability to try on items before purchasing (36%) and the convenience of taking purchases home right away (26%).
