Bridging skills gap key to unlocking AI in GCC retail: report

Trade Arabia

22-04-2025

A lack of skilled AI professionals is the biggest obstacle to unlocking the potential of AI-driven personalisation in the GCC retail sector, according to a new study.
Titled "Artificial Intelligence in GCC Retail," the white paper, released by Al-Futtaim during Dubai AI Week in collaboration with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), captures insights from an exclusive roundtable hosted by Al-Futtaim that brought together leading industry players, technology providers, academics, and startups to discuss the opportunities and challenges of AI in retail.
Nearly 93% of the participants at the roundtable identified skills gaps as a major barrier to AI adoption in the retail sector, while more than 70% cited data preparation and management as significant issues. Nearly half said lack of executive support was a hindrance, while limited awareness and data privacy concerns also limit widespread adoption. If these challenges are not addressed, GCC retailers will struggle to meet the evolving expectations of their customers, failing to deliver the personalised and seamless experiences that are increasingly essential for success.
'The GCC retail sector is at a tipping point. AI is the key to delivering personalised, high-impact customer experiences — but it all begins with talent. We must invest in skills today to meet tomorrow's expectations,' said Moza Al Futtaim, Chief AI Officer at Al-Futtaim.
Findings from the roundtable highlight the GCC's strong ambition to become a global AI hub, enabled by significant capital resources, a digitally engaged population, and proactive government strategies. Initiatives such as the UAE's National AI Strategy 2031 and Saudi Arabia's $100 billion Project
Transcendence demonstrate the commitment of these nations to becoming global AI leaders.
In the retail sector, AI is quickly emerging as the solution to increase profits and optimise processes, all while ensuring customer service remains impeccable. However, while the GCC has the ambition to deliver on these expectations, challenges including a shortage of skilled professionals is hindering progress.
Steve Liu, Associate VP for Research, at Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), said: 'The growing demand for AI expertise across all sectors underscores the urgent need to reimagine education. To ensure success in this new era, we must prioritise building a workforce proficient in AI technologies and equipped with the critical thinking, problem-solving, and ethical reasoning skills needed to navigate the complexities of this rapidly advancing field. This requires a commitment to fostering lifelong learning opportunities, enabling individuals at all career stages to engage in upskilling and reskilling initiatives, alongside cultivating future AI leaders.'
To unlock the full potential of AI-driven personalisation, the white paper outlines a series of key recommendations for GCC retailers across five key areas:
• Talent Development and Skills: To address the critical skills gap, GCC retailers must embrace AI-first and AI-native education, develop targeted training programmes, champion continuous learning, and partner with universities and training providers to build a skilled workforce capable of leading the AI revolution.
• Customer Engagement and Personalisation: To meet the evolving expectations of today's consumers, retailers should localise the experience by embracing the GCC's diverse cultural nuances, humanise the digital by ensuring AI enhances the human touch, personalise across channels to create a truly omnichannel journey, and earn consumer trust by being transparent about data usage.
• Technology Foundations: To build a robust foundation for AI adoption, retailers need to centralise their data by establishing a centralised data platform, invest in data infrastructure to ensure data quality, train their teams on data handling, and explore cloud-based solutions to leverage AI platforms.
• Ecosystem Collaboration: To foster innovation and accelerate AI adoption, retailers must engage with policymakers and proactively collaborate with regulators, forge strategic partnerships with other retailers, government entities, and academia, and support start-ups to foster a vibrant ecosystem.
• Ethics and Governance: To ensure responsible and sustainable AI adoption, retailers must prioritise ethics from the start by embedding ethical considerations into their AI strategy, establish an ethics committee to create a dedicated internal regulator, mitigate algorithmic bias by implementing adaptive controls, and integrate security and ethics by collaborating with security teams.
The white paper highlights that while AI offers immense opportunities for innovation, it's the human touch that will ultimately define success in the GCC retail sector. By embracing a customer-centric approach, fostering ethical AI practices, and investing in talent development, retailers can leverage technology to build stronger relationships and deliver truly exceptional, human-centric experiences that resonate with their customers. –