More UAE shoppers feel let down by AI when shopping: Here's why

02/09/2025 03:55 AST

Shoppers across the UAE are losing patience with how brands use artificial intelligence (AI) in retail. Despite record investment, consumers say they are not seeing enough value for the personal data they share - and many feel brands are falling short on delivering the personalized experiences they promise.

The findings come from the latest AI in Retail Report by SAP Emarsys, based on surveys of more than 1,000 UAE consumers and 200 marketers.

Growing disconnect
The report reveals a striking gap between what brands believe they deliver and how shoppers experience it:

82% of marketers say AI is central to their personalization efforts.

Only 31% of consumers feel brands tailor content to their needs.

Just 18% of shoppers believe they receive fair value in exchange for their data.

This gap is not about consumer expectations being too high, but rather about weak systems behind the scenes. Many marketers admit they struggle with fragmented, hard-to-use data, and nearly 70% say they cannot act on insights in real time. The result: disjointed, impersonal interactions that leave shoppers unimpressed.

Shoppers feel short-changed
The survey points to two main reasons behind the breakdown in trust:

Opaque data use - Only 35% of shoppers said they had high trust in how brands use their data. Consent often feels like a box-ticking exercise rather than meaningful transparency.

Thin value exchange - While consumers share browsing history, purchase details, and preferences, they often receive irrelevant or repetitive marketing messages in return.

Marwan Zeineddine, SAP UAE Managing Director, explained: "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."

When AI gets it right
Not all brands are missing the mark. The report highlights Gibson Guitars as an example of using AI to enhance customer trust and engagement.

By focusing on purposeful personalization, the company doubled engagement rates, boosted email-driven sales by 50%, and now drives more than 40% of revenue through automated experiences.

As Sterling Doak, Gibson's Head of Marketing, put it: "We're not selling t-shirts, we're selling guitars. AI helps us personalize with purpose, without losing the soul of the brand."

What this means for UAE shoppers
For consumers, the key takeaway is clear: not all personalization is created equal. The report stresses that brands must focus on:

Transparency - making it clear how customer data is collected and used.

Consistency - ensuring seamless experiences across websites, apps, and in-store.

Real value - offering meaningful rewards, recommendations, or savings in exchange for data.

Until more brands close the gap, UAE shoppers will continue to question whether sharing their data is worth it.

What to seek from brands using AI
Clarity on data use - Look for brands that explain why they ask for your information and how it improves your shopping.

Relevant rewards - Expect discounts, offers, or recommendations that match your actual preferences.

Control over data - Choose retailers that let you update or remove your data easily, giving you real ownership.

Khaleej Times