The Rise of Generative AI and Digital Consumer Trends in the UAE and KSA
Dubai, UAE – The advent of generative AI tools, coupled with the dominance of smartphones, is reshaping consumer behavior in the UAE and Saudi Arabia (KSA). According to Deloitte’s latest Digital Consumer Trends 2025 report, these regions are witnessing a surge in the adoption of AI-powered tools, social commerce, and connected devices, marking a definitive shift in how consumers engage with technology.
Significant Uptake of Generative AI
The report’s findings reveal that 58% of respondents in both the UAE and KSA have utilized generative AI tools like ChatGPT or Google Gemini. This figure significantly outpaces similar statistics observed in European markets, indicating a robust enthusiasm for AI in the Middle East. Notably, 55% of generative AI users engage with these tools on a weekly or daily basis, utilizing them for various applications including personal, educational, and professional purposes. However, an awareness gap persists; about 20% of respondents remain unfamiliar with AI technology, and concerns about data privacy act as a deterrent—one in four people cite it as their primary worry regarding AI adoption.
Smartphones Reign Supreme, Yet Connected Devices Lag
While smartphones continue to be the cornerstone of digital life—with an impressive 96% of consumers using them daily—the appetite for connected devices is also on the rise. Around 89% of consumers expressed intent to purchase new connected devices within the next year, with smartphones, smartwatches, and laptops topping the list. Despite these aspirations, smart home device adoption remains relatively low compared to Western markets. However, consumer interest in connected living solutions is gradually increasing, suggesting potential growth in this sector.
Social Media: The New News and Shopping Hub
Social media platforms have surpassed traditional news outlets as primary sources for current events. According to the report, 56% of consumers rely on social media for news, while only 30% turn to television and 22% to dedicated news websites. This shift highlights a changing landscape in media consumption, alongside growing concerns about misinformation. Nearly half of UAE consumers reported encountering false information more frequently over the past year.
Furthermore, the influence of social media on consumer behavior is unparalleled. The report indicates that 73% of respondents have completed at least one purchase via social platforms in the past year, underscoring the effectiveness of influencer recommendations and affiliate links in driving online sales. This trend towards social commerce is altering the retail landscape, making it critical for brands to leverage these platforms effectively.
Streaming Services Encounter Pricing Challenges
While the popularity of streaming services continues to rise—over half of consumers in the UAE and KSA subscribed to a video streaming service in the past year—the escalating cost of subscriptions is leading to a wave of cancellations. The report indicated that 21% of respondents cited lack of use and 20% mentioned cost as primary reasons for unsubscribing. Additionally, 47% of consumers have felt the impact of streaming platforms cracking down on account sharing, further complicating the streaming landscape.
Industry Perspectives on Digital Transformation
Emmanuel Durou, Technology, Media & Telecommunications Leader at Deloitte Middle East, emphasizes that the UAE and KSA stand at the forefront of digital transformation. He notes that the impressive adoption rates of generative AI and connected devices highlight a tech-savvy population backed by significant investments in infrastructure. Durou posits that this transformational phase presents businesses with ample opportunities to rethink their engagement strategies.
As reliance on digital platforms rises, so do concerns surrounding data privacy and misinformation. Companies must find a balance between innovative practices and nurturing consumer trust to meet the evolving expectations of today’s digital landscape.
The Digital Consumer Trends 2025 report sheds light on the swiftly changing tech, media, and telecommunications landscape in the Middle East. As generative AI grows in popularity, social commerce continues to expand, and digital content consumption evolves, businesses must adapt to remain competitive in this fast-paced environment.