The integration of AI is a necessity in today’s digital landscape” – Bill Farrell, IBM Consulting

IBM’s release of the regional findings from two significant studies, the 2023 Global AI Adoption Index by Morning Consult and the biennial consumer study focused on the Middle East and Africa (MEA) by the IBM Institute for Business Value, provides valuable insights into AI adoption trends and consumer preferences in the region. These studies offer a comprehensive understanding of how businesses in the United Arab Emirates (UAE) are leveraging AI technologies and shed light on consumer attitudes and behaviors across the MEA region. The findings are likely to inform strategic decisions for businesses operating in these markets and contribute to the advancement of AI initiatives in the region.

The studies offer a comprehensive examination of consumer behaviors and the adoption of AI technologies by enterprises, revealing the significant impact of AI on various sectors, including retail and business operations. The insights gleaned from these studies can help businesses make informed decisions to optimize their operations, enhance customer experiences, and stay competitive in today’s rapidly evolving market landscape.

Bill Farrell, Managing Partner of IBM Consulting for the Middle East and Africa region, emphasized the crucial role of AI integration for businesses in the UAE, noting that it is no longer just a competitive advantage but a necessity in today’s digital environment. He also highlighted the evolving expectations of consumers, stressing the importance for retailers in the Middle East and Africa to adopt AI technologies promptly. Farrell underscored IBM’s commitment to innovation and expertise in AI and hybrid cloud solutions, positioning the company as a key enabler of these transformations. He emphasized IBM’s focus on trust, transparency, and ethical AI practices, aligning with the growing demand for responsible AI deployment in the region.

The IBM Global AI Adoption Index 2023, which surveyed over 8,500 IT professionals, including those from the UAE, highlights the rapid adoption and integration of AI across various business sectors. The study indicates that 65% of IT professionals in the UAE have observed a significant acceleration in AI implementation over the past 24 months. This trend is reshaping business operations in the UAE, driving efficiency, innovation, and competitiveness in the local market. Moreover, the UAE stands out as a leader in AI adoption, with an impressive 42% of companies actively deploying AI in their business operations, reflecting the country’s commitment to technological advancement.

The proactive approach of UAE businesses in integrating AI into their core processes is indeed noteworthy, setting a benchmark for AI implementation in the region. Investments in AI are strategically focused, with research and development, as well as workforce upskilling, identified as top investment priorities. This emphasis on R&D and skill enhancement is crucial for sustaining AI growth and innovation, ensuring that the workforce is equipped to handle the evolving demands of AI technologies.

The study also reveals that 34% of UAE companies already have a comprehensive AI strategy in place, while an additional 30% are in the process of developing one. The main drivers propelling AI adoption in the UAE include advances in AI technology, its increasing integration into standard business applications, and the pressing need to reduce costs and automate key processes. These factors collectively contribute to the growing reliance on AI as a critical tool for business efficiency and innovation in the UAE.

IBM’s study “Revolutionize retail with AI everywhere: Customers won’t wait,” surveyed nearly 20,000 global consumers, including those from the Middle East and Africa (MEA). The study revealed a significant disparity between shopper demands and the current retail offerings.Despite the majority of consumers globally (73%) preferring physical stores, only 3% of MEA consumers are satisfied with the in-store experience. Interestingly, 75% of MEA consumers are using mobile applications while shopping, which is 10 points higher than the global average, indicating a growing trend towards a digitally integrated in-store experience.

Regarding AI, the study found that 9 out of 10 MEA consumers who haven’t used AI for shopping are interested in its potential to enhance their shopping journey. Additionally, 75% of MEA respondents are eager for AI applications, and 67% are interested in AI enhancements like virtual assistants.These findings underscore the rapidly changing consumer expectations, highlighting the urgent need for retailers to innovate and integrate advanced technologies, such as AI, to enhance the shopping experience. The study also provides actionable strategies for retailers to meet these evolving consumer demands.