A recent study has found that approximately 93% of experts in the sector believe that skill shortages are a significant hurdle to the adoption of AI in the retail industry of the GCC region.
A white paper published by Al-Futtaim during Dubai AI Week, in collaboration with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), indicates that the primary challenge preventing the realisation of AI-driven personalisation in GCC retail is the lack of qualified AI professionals.
The document, named “Artificial Intelligence in GCC Retail,” encapsulates discussions from a roundtable hosted by Al-Futtaim, which brought together prominent players from the industry, technology experts, scholars, and startups to explore the advantages and obstacles of AI in the retail landscape.
Over 70% of participants pointed to issues around data management and preparation as major challenges. Nearly half of the respondents indicated that insufficient support from executives was a barrier, while others cited a lack of awareness and concerns regarding data privacy as additional factors hindering broader AI adoption. If these barriers persist, retailers in the GCC may find it difficult to meet changing customer demands, ultimately failing to provide the personalised and smooth experiences that are crucial for successful operations.
“The retail sector within the GCC is at a crucial juncture. AI has the potential to deliver tailored and impactful customer experiences, but this initiative starts with building a skilled workforce. We need to invest in skills today to satisfy tomorrow’s demands,” stated Moza Al Futtaim, Chief AI Officer at Al-Futtaim.
Insights from the roundtable underscore the GCC’s strong ambition to emerge as a global hub for artificial intelligence, supported by significant financial resources, a digitally proactive population, and forward-thinking government initiatives. Projects like the UAE’s National AI Strategy 2031 and Saudi Arabia’s $100 billion Project Transcendence highlight the commitment of these countries to position themselves as world leaders in AI.
AI is rapidly becoming a solution for enhancing profitability and streamlining processes within the retail sector while maintaining excellent customer service. Yet, despite this ambition, the GCC faces challenges, particularly a shortage of qualified professionals, which is impeding progress.
Steve Liu, Associate VP for Research at MBZUAI, remarked: “The increasing need for AI expertise across various sectors emphasizes the urgent need to rethink education. To thrive in this new landscape, we must focus on developing a workforce that is adept in AI technologies and equipped with essential skills such as critical thinking, problem-solving, and ethical reasoning. This requires a commitment to lifetime learning opportunities, enabling individuals at all career levels to engage in upskilling and reskilling while nurturing the next generation of AI leaders.”
The white paper suggests several key recommendations for GCC retailers to fully realise the potential of AI-driven personalisation across five crucial areas:
• Talent Development and Skills: Retailers in the GCC need to adopt AI-focused education, create targeted training initiatives, promote ongoing learning, and collaborate with universities and training institutions to cultivate a skilled workforce equipped for the AI transformation.
• Customer Engagement and Personalisation: To cater to the changing expectations of modern consumers, retailers should adapt their offerings by considering the diverse cultural contexts of the GCC, enhance the human element in digital interactions via AI, create cohesive omnichannel experiences, and earn customers’ trust by being transparent about data usage.
• Technology Foundations: Retailers must establish a strong base for AI adoption by centralising data through a unified data platform, investing in robust data infrastructure to maintain data quality, training teams on effective data management, and looking into cloud solutions for deploying AI tools.
• Ecosystem Collaboration: To stimulate innovation and hasten AI implementation, retailers should engage with policymakers, collaborate with regulators, form strategic partnerships with other retailers as well as governmental and academic bodies, and support startups to cultivate a dynamic ecosystem.
• Ethics and Governance: Responsible and sustainable AI adoption requires an ethical foundation, mandating retailers to integrate ethical considerations into their AI strategies, set up ethics committees for internal regulation, address algorithmic bias with adaptive controls, and ensure collaboration with security teams to merge security and ethics.
This white paper asserts that while AI presents tremendous opportunities for innovation, the human element will ultimately define success in the retail sector of the GCC. By adopting a customer-centric mindset, fostering ethical AI practices, and prioritising talent development, retailers can use technology to enhance relationships and deliver truly remarkable, human-focused experiences that resonate with their clientele.