Insights highlight impact of AI in driving efficiency and enhancing consumer experiences.
The IBM Global AI Adoption Index 2023 recently revealed that 42 percent of companies in the UAE have adopted artificial intelligence (AI) in their business operations, highlighting the country’s continuous efforts towards technological advancement and digital transformation.
IBM recently released the findings of two studies that shed light on the growing adoption of AI in both business operations and the retail sector within the UAE and the wider Middle East and Africa (MEA) region. The studies include the 2023 Global AI Adoption Index by Morning Consult which provides insights from UAE companies, and the ‘Revolutionize retail with AI everywhere: Customers won’t wait’ study.
These studies underscore the transformative impact of AI in reshaping business strategies, enhancing operational efficiency, and revolutionizing the retail landscape to meet evolving consumer expectations.
Rapid AI adoption
The IBM Global AI Adoption Index 2023 surveyed over 8,500 IT professionals, including some from the UAE. This study sheds light on the rapid adoption and integration of AI into different business sectors. It reveals that 65 percent of IT professionals in the UAE reported an increase in AI adoption over the past 24 months. This has reshaped the way businesses operate, and increased efficiency, innovation, and competitiveness in the UAE market. With 42 percent of companies already utilizing AI, the UAE emerges as a frontrunner in technological advancement in the region.
The study also reveals that 34 percent of companies in the UAE have a comprehensive AI strategy. Meanwhile, an additional 30 percent are in the process of developing one.
Reasons for AI adoption in the UAE include the increasing integration of AI in standard business applications. Moreover, businesses seek to reduce costs and automate essential processes which contributes to the growth of AI in business operations.
Revolutionizing retail with AI
In addition to the UAE findings, IBM retail and AI research highlights consumer preferences and demands in the MEA region. Despite a preference for physical stores, only 3 percent of MEA consumers are satisfied with the in-store experience. However, 75 percent of MEA consumers are supplementing their in-store experiences with mobile applications, showcasing a shift towards a digitally integrated shopping experience.
AI holds immense potential to enhance the shopping journey, with 9 out of 10 MEA consumers expressing interest in AI applications for shopping. Meanwhile, 75 percent of MEA respondents are eager for AI applications, and 67 percent for AI enhancements like virtual assistants.
By Yara Abi Farraj
