Today's Edition
Yousef Al-Arabi (ABU DHABI)
The UAE’s online retail and grocery industry has witnessed a significant transformation in recent years, driven by unprecedented advancements in artificial intelligence capable of elevating and enhancing all aspects of the shopping experience.
The UAE ranked 27th among the world’s largest e-commerce markets, according to “Ecommerce DB”, a partner of “Statista” data, which predicted a continued growth of online sales in the coming years.
Developments range from personal interactions to supply chain processes. Using AI and machine learning techniques, the sector has achieved better utilisation of consumer data, and a focus on optimal planning and smooth execution has improved various aspects of corporate retail chains.
Harnessing the potential of AI, companies have successfully upgraded their electronic systems to receive orders and implement strategies to identify geographical areas to maximise the use of assets and enhance their service standards and quality.
The food sector surpassed other sectors in the rapid adoption of e-grocery platforms over the past decade, with the industry’s significant growth, both in the UAE and the region, highlighting the importance of convenience and customisation as pivotal factors guiding consumer choices.
Max Avtukhov, Co-founder and CEO of Yango Tech, a UAE-based e-commerce company, told Aletihad that AI plays a significant role in the retail sector’s customer-facing applications, offering consumers comprehensive, updated catalogues, special offers, and sales. Machine learning algorithms enable retailers to provide personalised recommendations to consumers that match their purchasing patterns. But it doesn’t stop there, Avtukhov said; the role of AI in transforming search functions using advanced algorithms leads to more accurate search results. Due to this simplified search experience, finding desired products becomes easier and faster. Further along in the purchasing process, AI-based logistics services enable e-retailers and e-groceries to provide better delivery terms and conditions for themselves and consumers, such as fees, probable delivery time, and more.
The integration of auto-order systems and advanced grocery management technology has also transformed the overall grocery landscape. A study by global consulting firm McKinsey found that the number of customers choosing home delivery is steadily increasing, currently representing a market worth more than $100 billion. AI-based auto-ordering systems are transforming the way that businesses manage their orders, as the technology accurately predicts the demand for specific products, and automatically orders them from suppliers to maintain optimal stock levels. This automation allows companies to effectively manage their inventory, reducing product wastage, addressing write-offs, and subsequently improving profitability and growth, he said.“By leveraging AI algorithms to analyse sales data, seasonal trends, and customer preferences, auto-ordering systems ensure e-grocery retailers’ ability to efficiently fulfil their customers’ orders, leading to increased customer satisfaction and enhanced brand loyalty,” Avtukhov said.
