A recent white paper released by UAE-based Al Futtaim Group during Dubai AI Week, in collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), reveals that the biggest obstacle to unlocking the potential of AI-driven personalization in the GCC retail sector is the severe shortage of skilled AI professionals.
The white paper, titled “Artificial Intelligence in GCC Retail,” reflects insights gathered from an exclusive roundtable hosted by Al Futtaim, which brought together leading industry players, technology providers, academics, and startups to discuss the future of AI in retail.
Nearly 93% of the participants in the roundtable identified a skills gap as the primary barrier to AI adoption within the retail sector. Over 70% also pointed to challenges in data preparation and management as significant hurdles. Furthermore, almost half of the participants cited a lack of executive support as an impediment, while issues related to data privacy and limited awareness also posed challenges to widespread AI adoption.
The white paper emphasizes that if these challenges are not addressed, retailers in the GCC will struggle to meet the growing demands of their customers. They will fail to deliver the personalized, seamless experiences that are essential for success in the evolving retail landscape.
Moza Al Futtaim, Chief AI Officer at Al-Futtaim, remarked, “The GCC retail sector is at a tipping point. AI is the key to delivering personalized, high-impact customer experiences — but it all begins with talent. We must invest in skills today to meet tomorrow’s expectations.”
The findings also highlight the GCC’s ambitious vision to become a global AI hub, driven by substantial capital resources, a digitally engaged population, and progressive government strategies. Initiatives such as the UAE’s National AI Strategy 2031 and Saudi Arabia’s $100 billion Project Transcendence illustrate the region’s commitment to becoming a global AI leader.
In the retail sector, AI is quickly emerging as a powerful solution to increase profits and optimize operations, while ensuring top-tier customer service. However, the region’s progress is hindered by a lack of skilled professionals.
Steve Liu, Associate VP for Research at MBZUAI, emphasized the urgent need to address this skills gap. “The growing demand for AI expertise across all sectors underscores the need to reimagine education,” Liu said. “We must prioritize building a workforce proficient in AI technologies and equipped with critical thinking, problem-solving, and ethical reasoning skills.”
The white paper outlines five key areas where GCC retailers can focus their efforts to unlock the full potential of AI-driven personalization:
- Talent Development and Skills: Retailers must embrace AI-first education, develop targeted training programs, promote continuous learning, and collaborate with universities and training providers to build a skilled workforce capable of leading AI initiatives.
- Customer Engagement and Personalization: Retailers should localize experiences to align with the GCC’s cultural nuances, humanize digital interactions, create personalized omnichannel journeys, and earn consumer trust by being transparent about data usage.
- Technology Foundations: Retailers need to establish centralized data platforms, invest in data infrastructure, ensure data quality, train teams on data handling, and explore cloud-based AI solutions.
- Ecosystem Collaboration: To foster innovation, retailers should engage with policymakers, collaborate with regulators, form strategic partnerships, and support startups to accelerate AI adoption.
- Ethics and Governance: Retailers must integrate ethics into their AI strategy, establish ethics committees, implement controls to mitigate algorithmic bias, and collaborate with security teams to ensure responsible AI adoption.
The white paper concludes by emphasizing that while AI presents immense opportunities for innovation, it is the human touch that will define success in the GCC retail sector. By focusing on a customer-centric approach, ethical AI practices, and investing in talent development, retailers can build stronger relationships and deliver exceptional, human-centered experiences.
