Deloitte: Consumers in UAE and KSA driving surge in AI adoption and social commerce
Deloitte has released the 2025 edition of its Digital Consumer Trends report, providing in-depth insights into how consumers in the United Arab Emirates and Saudi Arabia are engaging with digital technology, media, and connectivity. The study highlights the rapid adoption of generative AI, the continued dominance of smartphones, the growing appeal of connected devices, and the shift towards social commerce.
The report, which is based on a survey of 2,000 consumers aged 18-50 across the UAE and KSA, reveals a significant increase in AI usage, with 58% of respondents having used generative AI tools such as ChatGPT or Google Gemini, markedly higher than in the UK or European markets.
Consumers in KSA and the UAE are embracing AI-powered tools at an accelerated pace. While 55% of generative AI users engage with these tools weekly or daily, driven by personal, educational and professional applications. 20% of respondents are still unfamiliar with AI technology.
The leading Gen AI work applications in KSA and the UAE are tasks oriented – these include looking-up information (46%), editing emails (40%) and translating (36%). Translating in the UAE is particularly high considering the diverse nature of the workforce across multiple nationalities and culture.
The study finds that data privacy concerns remain a key barrier, for infrequent users in particular, with one in four citing privacy as their top concern. In the same vein, copyright and intellectual property infringement is a key concern (19%) of respondents. “Regulatory safeguards in the region will be key to adoption,” noted Emmanuel Durou, Technology, Media & Telecommunications Leader at Deloitte in the Middle East.
Smartphones remain dominant
The smartphone continues to be the primary digital device in the region, with 96% of consumers using it daily. The average life of smartphones in the UAE and KSA is less than 2 years, and over half (52%) of all users own a smartphone less than 18-month-old.
Meanwhile, 89% of consumers in the UAE and KSA plan to purchase a new connected device in the next 12 months, with smartphones, smartwatches, and laptops ranking as the most desired categories.
The adoption of smart home devices is still emerging, trailing behind Western markets, though interest in connected living solutions is steadily rising.
Social media is the go-to for news and shopping
News consumption habits have changed significantly over the past years, finds Deloitte’s report, with social media surpassing traditional news outlets as the go-to source for current events. While 56% of consumers rely on social media for news, only 30% watch television news, and 22% visit news websites.
News consumption via social media is driven by factors such as widespread mobile connectivity, high internet penetration, and social media usage, among all age groups.
Social media’s influence on consumer behavior has reached unprecedented levels, with 73% of respondents reporting at least one transaction through social platforms in the past year. Social commerce is gaining traction as a preferred method of online shopping, boosted by influencer recommendations and affiliate links.
The report highlights growing concerns about online misinformation, with 48% of UAE consumers stating they encounter false information more frequently than a year ago.
Streaming and digital subscriptions face pricing pressure
The report further finds that paid digital subscriptions by consumers in KSA and the UAE is significantly less compared to Western markets such as the United Kingdom.
At the same time, while over half of consumers in KSA and the UAE subscribed to a video streaming service in the past year, the rising cost of subscriptions is leading to cancellations. 21% of respondents cited lack of use, and 20% cited cost as reasons for unsubscribing. Additionally, 47% of consumers have been affected by streaming platforms cracking down on account sharing.
Reflection from Emmanuel Durou
Commenting on the report’s findings, Durou said: “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.”
“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.”
