E-Paper
Sign In
UAE firms step up AI investments as customer expectations outpace business capabilities
SAP research shows UAE companies are improving customer engagement capabilities, but fragmented data, siloed teams and slow AI adoption continue to hinder progress
- PUBLISHED: Mon 20 Jul 2026, 6:09 PM
Businesses in the UAE are investing heavily in artificial intelligence and customer engagement technologies as consumers demand faster, more personalised experiences, but many organisations remain constrained by fragmented data and disconnected operations, a study showed on Monday.
A new SAP Engagement Index found that while customer expectations are rising rapidly, many companies are struggling to translate growing technology investments into seamless customer experiences. The report warns of a widening “engagement divide” between what consumers expect and what businesses can deliver in real time.
Recommended For You
The study found that 76 per cent of businesses plan to invest in AI-powered customer engagement in 2026, while an equal proportion are investing in omnichannel engagement technologies. At the same time, 74 per cent of brands believe AI will be critical for acquiring and retaining customers.
The UAE emerged as one of the world’s strongest mid-maturity markets for customer engagement. Around 73 per cent of UAE marketers were classified as having a moderate level of customer engagement maturity in 2026, up from 58 per cent a year earlier. The share of low-maturity organisations fell to 12 per cent from 23 per cent, suggesting companies are making progress in integrating customer engagement practices across their operations.
However, only 15 per cent of UAE marketers achieved a high engagement maturity score, highlighting significant room for improvement as businesses seek to make better use of customer data and AI tools.
The report also found persistent operational challenges. More than half of enterprises surveyed said they cannot access and use real-time data, while 64 per cent suffer from “dark data” that is collected but remains unused. Another 56 per cent said their data is too unstructured to use effectively.
“Customer expectations are moving at a new speed. With AI at their fingertips, people compare, decide, and switch in an instant, and those micro moments now define whether a brand wins or loses a relationship,” said Sara Richter, CMO of SAP Engagement Cloud.
Consumer frustration is becoming increasingly apparent. Globally, 66 per cent of consumers said they are put off by disorganised experiences that force them to interact with multiple teams to resolve a single issue, while 49 per cent believe most marketing emails they receive are irrelevant. Nearly six in 10 consumers said the overall experience matters more than the brand itself.
Internal coordination remains another weakness. The report found that only about one-third of decision-makers believe departments such as sales, marketing, technology and customer service are fully coordinated, contributing to inconsistent customer experiences across channels.
Balaji Balasubramanian, President and Chief Product Officer at SAP Customer Experience, said organisations that integrate customer, operational and supply chain data are better positioned to respond to evolving consumer expectations.
“The brands winning in the Engagement Era aren’t running more marketing campaigns, they’re building engagement as a comprehensive enterprise-wide capability,” he said.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.