UAE brands are pouring money into AI, but shoppers aren’t convinced it’s working for them, according to the new AI in Retail Report from SAP Emarsys.
The report, in its third year, is based on insights from more than 200 marketers and 1,000 shoppers in the UAE, and reveals a growing gap between what marketers intend and what customers experience. While 82% of UAE marketers say AI is central to their personalization, only 31% of consumers believe brands personalize content to their needs and just 18% feel they receive fair value in exchange for their data.
This disconnect is more about infrastructure than expectations. While consumers expect personalized experiences, marketers are struggling behind the scenes. More than half (69%) say their data is too unstructured to use effectively, and just as many admit they can’t act on insights in real time, according to recently released SAP Emarsys research . Without unified, accessible data, brands risk delivering disjointed, impersonal interactions that could undermine both trust and loyalty.
“Brands are dealing with fragmented systems. More than half (64%) of marketers are dealing with ‘dark data’ that’s hard to access, with rising pressure to deliver results fast,” said Marwan Zeineddine, SAP UAE Managing Director. “But from a consumer’s point of view, the value exchange is broken. You share your data but get little in return with no visibility into how it’s used. That’s where trust breaks down and loyalty is lost.”
What is behind the lack of trust?
The report points to two root causes behind the lack of confidence:
Opaque data use: Only 35% of respondents had a high trust level in how brands use their personal data. Consent often feels performative, not meaningful.
Thin value exchange: Shoppers regularly hand over personal data, preferences, purchase history and browsing behavior, but receive repetitive, often irrelevant messaging in return.
SAP Emarsys highlights that without visible and valuable data activation, AI could become just another marketing tool that drives consumers away.
Engagement-Era brands lead the way:
Some brands, however, are getting it right. The report spotlights globally recognized brand Gibson Guitars as a leading example of what SAP Emarsys calls “Engagement Era” brands: those using AI not just for automation, but for building deeper, more transparent connections with customers.
“We’re not selling t-shirts, we’re selling guitars,” said Sterling Doak, Head of Marketing at Gibson. “AI helps us personalize with purpose, without losing the soul of the brand.”
Using SAP Emarsys, Gibson now drives more than 40% of its revenue through automation-led experiences, has doubled its engagement rates, and achieved a 50% increase in sales generated via email marketing campaigns.
SAP’s Zeineddine said: “Brands like Gibson are turning insight into action. They’re showing customers how their data creates better experiences, and they’re doing it with integrity, not gimmicks. SAP Emarsys helps businesses get to that point: turning fragmented, hard-to-reach data into something that earns attention, trust, and ultimately, true lifetime loyalty.”
With AI adoption accelerating, the rules of engagement are changing fast. SAP Emarsys advises retailers to focus on first-party data transparency, cross-channel consistency, and a clear value exchange to ensure customers get the experience they deserve.
