Mena retail sector is poised to become one of the biggest spenders on artificial intelligence this year, according to US-based research company IDC.
This comes as the global AI market is projected to surpass $1.7 trillion in 2030 – up from $93.5 billion in 2021, growing at a compound annual growth rate of more than 38 per cent, Grand View Research finds.
Currently, the Middle East remains one of the leaders in elevating physical retail experiences, with online retail giants rapidly conquering the virtual shopping space.
The rapid adoption of the AI solution has significantly boosted digital transformation in the region, the IDC report revealed.
Senior programme manager for software, cloud and IT services at IDC for the Middle East and Africa, Manish Ranjan, said: “Organisations across the region are investing in AI technologies and related software and services to drive greater efficiency through automation and contribute to a more agile operating environment.
“The effects of the pandemic have fuelled further spending in relation to AI/ML [machine learning] adoption, particularly within the banking and finance, manufacturing, trade, health care and government verticals,” Mr Ranjan said.
.Chief e-commerce officer at luxury retailer Chalhoub Group, Ryan Den Rooijen, said in January: “One needs to look at the popularity of massive online games such as Minecraft, Roblox, and Fortnite, to realise that the future of retail is already here.
“The question is how these and similar platforms will incorporate brands and retailers over time without alienating their users. Most consumers already benefit from AI tools without realising it. For example, to ensure consumers get the best deal, many brands use price-matching technology to ensure their prices are competitive.”
In a nutshell, AI growth prospects in the Middle East and Africa region “look very promising as businesses are increasingly investing in AI- and analytics-based solutions to strengthen and expand their customer experiences, build digital capabilities and drive innovation,” said Mr Ranjan.
However, “numerous challenges will accompany the region’s increasing adoption of AI, with the most critical being the lack of skilled resources such as data scientists, data engineers and AI modellers.”
Previously, market reserach company Contrive Datum Insights predicted that AL global AL market in retail would grow at a compound annual growth rate of 18.45 per cent between this year and 2030.
