UAE and Saudi Arabia’s generative AI adoption hits 58 percent, outpacing European markets: Report
Sep 04, 2025
Data privacy concerns remain a key barrier, for infrequent users in particular, with one in four citing privacy as their top concern
Consumers in the UAE and Saudi Arabia are increasingly engaging with digital technology, media and connectivity as digital transformation progresses across the region.
In its latest Digital Consumer Trends 2025 report, Deloitte revealed a significant increase in AI usage, with 58 percent of respondents having used generative AI tools such as ChatGPT or Google Gemini, markedly higher than in the U.K. or European markets.
The report also revealed that 73 percent of consumers in Saudi Arabia and the UAE have made a purchase through social media in the past year, signaling the growing influence of influencer-driven shopping experiences.
“The UAE and Saudi Arabia are at the forefront of digital transformation, with consumers embracing AI, mobile-first lifestyles, and social commerce at an impressive rate. This is evidenced by the remarkable adoption rates of Gen AI and connected devices in the UAE and Saudi Arabia. These trends speak not only to the region’s tech-savvy population but also to the significant investments in infrastructure and digital transformation here,” said Emmanuel Durou, technology, media and telecommunications leader at Deloitte Middle East.
Privacy remains top concern in AI adoption
The Deloitte study, which surveyed 2,000 consumers aged 18-50 across both markets, highlights the rapid adoption of generative AI, the continued dominance of smartphones, the growing appeal of connected devices, and the shift towards social commerce.
Consumers in Saudi Arabia and the UAE are embracing AI-powered tools at an accelerated pace. While 55 percent of generative AI users engage with these tools weekly or daily, driven by personal, educational and professional applications, 20 percent of respondents are still unfamiliar with AI technology.
The study also finds that data privacy concerns remain a key barrier, for infrequent users in particular, with one in four citing privacy as their top concern.
“This shift presents opportunities for businesses to rethink engagement strategies, particularly as AI continues to reshape how consumers search, shop and interact online. It provides a clear roadmap for companies looking to tap into these exciting markets. However, as reliance on digital platforms grows, so do concerns around data privacy and misinformation. Organizations must strike a balance between innovation and trust to meet the evolving expectations of today’s digital consumer,” Durou added.
The report also reveals that smartphone continues to be the primary digital device in the region, with 96 percent of consumers using it daily. Meanwhile, 89 percent of consumers in the UAE and Saudi Arabia plan to purchase a new connected device in the next 12 months, with smartphones, smartwatches and laptops ranking as the most desired categories.
Meanwhile, smart home device adoption is still emerging, trailing behind Western markets, though interest in connected living solutions is steadily rising.
Source: economymiddleeast