Adyen, a global leader in financial technology, has recently published its annual Retail Report for 2025, highlighting significant changes in consumer behavior within the UAE. The report reveals that 70% of shoppers in the country employ artificial intelligence to assist with their shopping experience, marking a 44% increase compared to 2024.
Based on a survey of over 41,000 consumers across 28 countries, the findings indicate that many shoppers view AI as a new addition to their purchasing habits. Notably, 21% of respondents in the UAE reported using AI for the first time in the past year, while 62% expressed their willingness to utilize it for future purchases.
The feedback from consumers regarding this technology has been positive, with 65% of UAE users stating that AI provides valuable suggestions when selecting clothing, meals, and other products. Additionally, 14% noted that some of their best purchasing ideas came during their interactions with AI. A significant 66% of participants are interested in discovering unique and specialized brands through AI, presenting new opportunities for retailers to forge strategic partnerships and create joint sales offerings to boost revenue.
Generation X Leading the Way
The adoption of AI in shopping is growing across all age groups in the UAE, particularly among Generation Z (ages 16-27) where 74% and Millennials (ages 28-43) where 75% report using AI while shopping, reflecting annual increases of 45% and 41%, respectively. Among Generation X members (ages 44-59), the utilization rate has reached 59%, a 49% rise year-over-year. The pace of adoption is also accelerating among older consumers, with 34% of those aged 60 and above currently using AI. Awareness levels among consumers are increasing, with 66% acknowledging that retailers may use AI to recommend products.
“Consumers are rapidly embracing AI and recognizing its potential to enhance their shopping experiences,” noted Roelant Prins, Chief Commercial Officer at Adyen. “We are approaching a stage where this technology acts as a business facilitator, offering personalized recommendations based on individual tastes and styles. Additionally, the demographic distribution of our results indicates significant trends, especially regarding older age groups’ reliance on AI in their shopping habits.”
Investment Planning
When asked about their revenue enhancement plans for 2025, retail companies in the UAE indicated a focus on investing in AI and advanced technologies. Specifically, 41% of businesses plan to implement AI to support sales and marketing efforts, while 37% aim to leverage this technology for product development.
Holly Worst, Vice President of Retail at Adyen, stated, “AI is no longer a future technology, but a necessity for both retailers and consumers. Earlier this year, we launched Adyen Uplift, a suite of AI-powered tools designed to enhance payment processes, assist businesses in improving transaction completion rates, manage fraud, and reduce payment costs. By widely adopting AI, we help retailers deliver exceptional customer experiences, allowing shoppers to complete payments more swiftly while efficiently managing fraud, making AI one of the critical growth factors highlighted for 2025.”
Unified Shopping Experience
Amid rising investments in new technologies, retailers continue to prioritize providing a unified shopping experience. Currently, 59% of companies in the UAE enable customers to shop seamlessly across both digital and traditional channels, with 16% of business leaders planning to launch this model in the next 12 months. Furthermore, 17% are working on enhancing in-store shopping experiences by offering exclusive in-store promotions and experiences.
The report also indicates that modern technologies and digital experiences are opening new avenues for brands to connect with customers. The survey found that 63% of participants expect to shop through multiple channels, including social media, apps, and websites. Additionally, 56% of consumers in the UAE confirmed they use social media as a shopping platform.
In-store Shopping Preferred
Despite the rise of digital platforms, traditional stores continue to hold significant importance in the UAE. When asked about their preferred shopping method, 34% of participants favored physical stores, while 27% preferred online shopping. Furthermore, 39% expressed a preference for seeing and touching products before purchasing, 36% preferred to try products, and 26% liked picking up their purchases directly in-store.