Artificial intelligence has evolved from mere technology to a vital component of everyday life in the UAE. From smart assistants managing appointments and answering queries to applications for transportation, shopping, and digital entertainment, AI’s influence is undeniable. This report highlights five key areas where AI has made a significant impact, becoming an integral part of the lives of UAE residents.
The e-commerce market in the UAE is projected to reach approximately AED 32.3 billion in 2024, with expectations to surpass AED 50.6 billion by 2029, according to the fifth edition of the “E-commerce in the MENA Region” report published by “Easy Dubai.”
Dubai stands out as a leading hub for e-commerce, backed by advanced infrastructure, supportive government policies, and a large population of tech-savvy users.
Residents utilize platforms such as “Amazon UAE,” “Noon,” and “Talabat,” which leverage AI to provide personalized recommendations, optimize pricing, and detect fraudulent activities, while predictive analytics is employed to enhance delivery efficiency.
2 – Smartphone Usage
The UAE ranks first globally in mobile shopping, with a significant portion of consumers using their phones for purchases, as highlighted in the “Global Digital Shopping Index 2025.”
Estimates indicate that internet users in the UAE reached around 11.1 million at the beginning of 2025.
According to the “Digital 2025” report by “DataReportal,” the vast majority of these individuals access the internet via smartphones, making this figure a reliable indicator of smartphone usage in the country.
Smartphones have transformed from simple communication devices into “integrated lifestyles.” Camera capabilities now automatically adjust images, while facial recognition is key for payments through digital wallets and banking apps, reflecting the country’s technological advancement.
3 – Virtual Assistants
In a fast-paced society, UAE residents are increasingly turning to advanced technologies like “Gemini,” “ChatGPT,” and “Siri” for assistance, which helps streamline their schedules and boost productivity by answering queries across various topics and managing smart home devices.
Recent reports indicate that the smart assistant market in the UAE is experiencing remarkable growth, being recognized as a crucial aspect of the digital economy.
The “Grand View Research” report estimated the value of the smart assistant or AI agent market in the UAE to be around $70 million in 2024, with projections to surge to $722.8 million by 2030, reflecting an impressive annual growth rate of 49.4% from 2025 to 2030.
4 – Transportation and Navigation
Smart transportation is a key focus area for the country. For instance, Dubai is investing over AED 1.6 billion in smart transportation solutions, positioning itself among the top 10 global cities for transportation efficiency. The emirate aims to transition 25% of all trips to autonomous travel by 2030.
This initiative encompasses all major public transport modes, including the metro, buses, and taxis. AI also facilitates navigation through applications like “Google Maps,” which provide congestion alerts and suggest alternative routes, along with services such as “Careem” and “Uber,” which pinpoint passenger locations accurately and estimate arrival times.
5 – Digital Entertainment
According to a report by “Grand View Research,” the digital entertainment market in the UAE is expected to reach $18.47 billion (AED 67.7 billion) by 2030, with a compound annual growth rate of 12.2% between 2025 and 2030.
This growth is driven by factors such as increasing dependence on digital platforms, a surge in the user base, and advancements in technological infrastructure, solidifying the UAE’s position as a leader in innovation within the media and digital entertainment sectors.
Dubai is notably active on video platforms, where AI-driven recommendation systems on YouTube and Netflix analyze viewing behaviors to suggest content that aligns with each user’s interests. The report highlights that over 8.25 million people in the UAE use YouTube monthly, constituting 73.6% of the total population.