During the recent ‘RetailME Think! I Can!’ forum held in Dubai, industry experts highlighted the transformative impact of artificial intelligence (AI) and ChatGPT on retail productivity. Dharmin Ved, CEO of 6th Street.com, discussed the four-fold increase in productivity achieved by their customer happiness team since the implementation of ChatGPT and other generative AI products. The introduction of artificial intelligence technologies is revolutionizing the retail sector and other industries, empowering frontline personnel and driving efficiency.
Tawhid Abdullah, CEO of Jawhara Jewellery, emphasized the importance of empowering team members to take ownership of projects and business activities. Partnership and empowerment are vital to their company’s success, enabling them to recreate a regional jewellery brand.
The retail industry has experienced significant evolution over the past three decades, transitioning from traditional window shopping to the era of mobile shopping. At the ‘RetailME Think! I Can!’ conference, retail leaders from the Middle East shared their transformational journeys, discussing challenges, opportunities, and insights for others embarking on similar paths.
Laila Mohammed Suhail, CEO of the strategic alliances and partnerships sector at Dubai Tourism, highlighted the substantial shift from brick-and-mortar retail to e-commerce, with the UAE at the forefront of this transformation.
Leadership approaches in the retail sector vary, as leaders adopt distinct strategies to address customer needs, drive business growth, and shape organizational structures. Mohammad Alawi, CEO of Red Sea Markets Company, emphasized the unique nature of leadership and the diverse approaches that leaders bring to their roles.
The symposium was praised as a valuable platform for industry interaction and learning, with Hozefa Saylawala, regional sales director of MESTA at Zebra Technologies, commending the gathering of retail leaders to discuss innovation, growth plans, and strategies openly.
Sustainability practices within the retail sector have significantly improved due to various measures the UAE government took, such as reducing plastic usage.
Rajiv Warrier, CEO of GCC at Choithrams, highlighted the impact of charging for plastic bags, which has significantly reduced consumption in Dubai and Abu Dhabi. Choithrams has also embraced sustainable practices, including installing the most extensive solar panel in Al Quoz. Warrier emphasized that companies are more likely to adopt sustainable practices when they align with profitability goals.
Overall, the forum provided a platform for retail leaders to share insights, discuss strategies, and explore the exciting times ahead for the industry in the region. The event also emphasized the growing importance of artificial intelligence, empowerment, and sustainability in shaping the retail sector’s future.
Let’s talk about the kind of role artificial intelligence is playing in the GCC economies. As per a report from McKinsey, more than six out of 10 GCC businesses are using AI for at least one function in their organisation, with retail companies being the most likely to be using it.
Some 75% of the survey respondents in the retail sector admitted to using AI already, whereas the study noted sectors like capital projects, infrastructure and financial services making less progress on this front.
Of those surveyed by McKinsey, 62% of businesses said they are now using artificial intelligence, on a par with North America, but there is a “significant untapped value”.
Energy and materials companies have been early adopters of AI, McKinsey said, as they operate in a market which is globally competitive.
Retail companies are using data gathered to gain insights on consumer preferences to inform prices and promotions and have used that data to jump-start artificial intelligence deployment, the report commented further.
International Data Corporation has predicted the Middle East and Africa regions will see the world’s fastest spending growth in artificial intelligence, surging at a compound annual rate of 29.7% over the 2022–2026 periods to USD 6.4 billion in 2026. The boom will be driven by the UAE and Saudi Arabia, the region’s economic powerhouses.
The UAE is on track to double its digital economy’s contribution to the country’s GDP to 19.4% from 9.7% by 2023, and to ensure this, the nation will spend USD 20 billion in IT, AI, robotics and blockchain by 2026, as per a recent report from the Boston Consulting Group.
PricewaterhouseCoopers have predicted that the region is expected to accumulate some USD 320 billion or 2% of the total global benefits of AI in 2030 estimated at USD 15.7 trillion.
Final Words
As per a report from Meticulous Research, AI-related investments in the retail market will likely reach USD 57.8 Billion by 2030, with a CAGR of 41% from 2023 to 2030.
With UAE and Saudi Arabia leading GCC’s economic transformation efforts and the diversification campaigns moving around the non-oil sectors, expect the retail arena to go through rapid changes and yes, AI will be at the core of the overall transformation.