How GCC Businesses Use AI for Personalization

AI personalization is transforming how businesses in the GCC connect with their customers. With 75% of businesses in the region already using generative AI, this technology enables tailored experiences by analyzing customer behavior, preferences, and cultural nuances. Here's a quick look at how AI is reshaping industries in the region:

• Machine Learning: Predicts customer needs, enabling dynamic pricing, behavioral segmentation, and inventory management during key events like Ramadan.
• Natural Language Processing (NLP): Handles Arabic-English code-switching, regional dialects, and sentiment analysis for better communication.
• Generative AI: Creates localized content for holidays like UAE National Day or Ramadan, ensuring relevance and resonance.
• Chatbots & Voice Assistants: Offer multilingual, real-time support and personalized product recommendations.

The GCC's rapid digital transformation, supported by government initiatives and tech-savvy consumers, makes AI personalization a powerful tool for businesses to drive engagement and growth. However, challenges like data privacy, dialect diversity, and respecting local customs require careful planning and execution.

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Core Technologies for Personalisation

The GCC's swift embrace of AI is powered by four key technologies, working in harmony to deliver tailored customer experiences. These systems not only handle vast amounts of data but also respect the region's cultural nuances.

Machine Learning and Customer Data Analysis

Machine learning is the engine behind personalisation efforts in GCC businesses. By analysing customer behaviour, purchase patterns, and engagement metrics, these algorithms predict what each individual might want next. This approach moves beyond basic demographic categories, creating micro-segments based on actual behaviours.

At the heart of this process are Customer Data Platforms (CDPs). For instance, Wick implemented a robust CDP for Baladna, Qatar's leading dairy producer. This system unified their customer insights and supported automated email campaigns, enabling more effective content planning and campaign management across the Qatari market.

Real-time data processing adds another layer of precision. It enables:

• Behavioural segmentation tailored to shopping habits and cultural preferences
• Dynamic pricing that adjusts to local market conditions
• Predictive analytics for inventory management during peak times like Ramadan
• Journey mapping to track customer interactions across various touchpoints

A GCC-based global retailer developed an AI/ML model in 2024 that monitors market conditions and ingredient prices in real-time to estimate product costs. This tool empowered procurement teams to negotiate better deals and offer competitive pricing, improving both operational efficiency and customer satisfaction.

Such advanced data analysis also supports precise communication, as seen in the capabilities of modern NLP systems.

Natural Language Processing for Arabic and English

The GCC's bilingual environment presents unique challenges that NLP technology is designed to overcome. These systems excel at handling code-switching - the mix of Arabic and English in a single conversation - while also understanding regional dialects and cultural nuances.

One of the biggest hurdles is dialect complexity. Gulf Arabic varies significantly from Levantine or Egyptian Arabic, and customers often blend English words into Arabic phrases. NLP models trained on regional datasets are now adept at capturing these subtleties.

Sentiment analysis has also reached new levels of sophistication. A phrase can convey different emotions depending on whether it’s spoken in Dubai, Riyadh, or Doha. NLP systems account for these variations, leading to improved customer satisfaction scores across the region.

Applications of NLP in the GCC include:

• Bilingual chatbots that seamlessly detect and respond in the customer’s preferred language
• Content localisation that goes beyond translation to reflect cultural nuances
• Voice recognition tailored to Arabic dialects for voice commerce
• Social media monitoring to gauge brand sentiment in both languages

This refined language processing lays the groundwork for generative AI to produce culturally relevant content.

Generative AI for Content Creation

In the GCC, 57% of organisations dedicate at least 5% of their digital budgets to generative AI, nearly double the global average of 33%.

Generative AI’s strength lies in its ability to create localised content that resonates. It doesn’t just translate - it crafts marketing messages suited to events like UAE National Day or Ramadan. For example, a campaign for breaking fast during Ramadan requires distinct imagery and messaging compared to a generic discount offer.

The technology also ensures that visual content aligns with cultural values, respecting modesty requirements while maintaining brand consistency across GCC markets.

Key uses include:

• Dynamic ad copy tailored to the tone and language preferences of specific audiences
• Product descriptions highlighting features most relevant to local tastes
• Email campaigns with personalised subject lines and content
• Social media posts that reflect current events and cultural moments

Chatbots and Voice Assistants

Conversational interfaces play a crucial role in delivering personalised experiences directly to consumers. Given the GCC's high mobile usage, chatbots and voice assistants are indispensable tools for engaging users.

Multilingual capabilities are essential for success in this region. Chatbots can switch between Arabic and English mid-conversation, maintaining context and a consistent tone. They handle complex queries, such as checking product availability, shipping to specific emirates, and processing payments in local currency.

Government initiatives highlight the potential of this technology. GCC governments have deployed virtual assistants for citizen services, simplifying bureaucratic processes and offering tailored solutions. This has boosted public satisfaction and increased the use of digital services.

Voice assistants, meanwhile, are gaining traction in voice commerce. Customers can search for products, place orders, and track deliveries using Arabic voice commands. These systems are designed to understand regional accents and handle specific requests like "find halal restaurants near Dubai Mall."

Practical applications of these tools include:

• 24/7 customer support to address routine queries in both languages
• Personalised product recommendations based on browsing history
• Transaction support for seamless payment and order tracking
• Appointment scheduling for in-person services

Together, these four technologies - machine learning, NLP, generative AI, and conversational interfaces - form a cohesive system for delivering personalised experiences. Machine learning drives the analysis, NLP ensures effective communication, generative AI creates relevant content, and chatbots and voice assistants bring it all to life in real-time. This synergy results in personalisation that feels natural and culturally aligned, perfectly suited for the GCC market.

Personalisation Methods for GCC Businesses

Using insights from advanced AI technologies, businesses in the GCC can refine customer data into detailed profiles, enabling personalisation beyond basic demographics. Here are four effective methods that help create meaningful customer connections in this diverse region.

Advanced Customer Segmentation

Relying solely on demographics like age or location doesn’t cut it in the dynamic GCC market. AI-driven segmentation dives deeper, creating micro-groups based on actual behaviours and shopping habits. For instance, it can identify Emirati shoppers leaning towards luxury brands, Saudi youth preferring mobile-first experiences, or shoppers whose habits shift during Ramadan. AI also detects preferences for Arabic content or family-focused messaging, while analysing factors like price sensitivity and device usage. This level of detail ensures campaigns address the specific needs of each group.

Real-Time Recommendation Engines

Real-time recommendation engines take personalisation a step further by analysing user behaviour, transaction history, and live market signals to suggest products instantly. These engines adapt their recommendations based on factors like time of day, customer location, and major cultural events such as the Dubai Shopping Festival. They even factor in shifts in behaviour during prayer times, weekends, or seasonal shopping trends. By doing so, businesses can boost conversions during key cultural moments and keep customers engaged across multiple platforms.

Multi-Channel Personalisation

Creating a seamless experience across devices and platforms hinges on unified customer data and consistent messaging. Mobile-optimised solutions like Progressive Web Apps ensure smooth interactions, while cross-device identity resolution helps track users across different touchpoints. WhatsApp, a platform where GCC consumers spend over 3 hours daily, plays a crucial role. Through the WhatsApp Business API, companies can provide personalised product recommendations, customer support, and even transactional features - all within a conversational interface.

A great example is Wick’s work with Baladna. By using a Customer Data Platform, they enabled automated email marketing and lead nurturing systems, ensuring consistent personalised messaging across all channels. Additionally, bilingual chatbots that detect language preferences from the first interaction have shown to boost engagement rates by 40% compared to manual language selection.

Event and Location-Based Personalisation

Cultural events and geographic context offer unique opportunities for tailored marketing in the GCC. AI systems customise content and promotions around local holidays and events like Ramadan, Eid, the Dubai Shopping Festival, and Riyadh Season. These systems adjust product recommendations, promotional timings, and messaging tones to fit the occasion. Geolocation features further enhance personalisation by sending notifications when users are near stores, suggesting products based on their past interactions and local inventory. City-specific adaptations also ensure campaigns resonate with the audience - for example, Dubai shoppers might see offers for international luxury brands, while Riyadh campaigns focus on family-friendly products. Time-sensitive strategies align messages with local prayer times, work hours, and social routines.

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Implementation Guide for GCC Businesses

Building on the personalisation methods discussed earlier, this guide offers a structured plan tailored specifically for the GCC market. With 75% of businesses in the region adopting generative AI models, there’s clear momentum. However, 61% of UAE employees and 57% of Saudi employees feel they lack proper training to use AI tools effectively. This gap underscores the need for a well-rounded implementation strategy.

Step-by-Step Implementation Process

A successful AI-driven personalisation strategy in the GCC depends on four key stages, each building on the previous one.

Data collection serves as the foundation. Businesses must gather customer data from various digital channels, ensuring compliance with local privacy laws like the UAE's Personal Data Protection Law. This includes analysing website behaviours, demographic details, language preferences, and shopping habits tied to events like Ramadan. Data accuracy is crucial, and formats must align with UAE standards to create reliable customer profiles.

AI model training transforms raw data into actionable insights by focusing on the region's unique behavioural, linguistic, and cultural patterns. Models should be trained in Modern Standard Arabic and regional dialects. Given that 63% of GCC organisations develop their own generative AI models (compared to 47% globally), there’s a strong emphasis on local expertise and security.

System integration ensures AI tools work seamlessly with existing digital systems. This involves creating smooth data flows between platforms, maintaining consistent user experiences, and prioritising mobile-first designs to match the region's high mobile usage rates. Compatibility with APIs and real-time data exchange is also essential.

Continuous optimisation is an ongoing process of refining AI models based on performance metrics and changing customer preferences. Key metrics include conversion rates, average order values (in AED), customer engagement scores, and revenue growth driven by personalisation. Governance frameworks are vital here, addressing concerns like cybersecurity (cited by 66% of organisations), compliance (52%), and model accuracy (45%).

To bridge these technical steps with business outcomes, Wick offers a comprehensive framework.

Wick's Four Pillar Framework

Wick’s framework builds on these implementation stages to create a unified digital marketing strategy for the GCC. It transforms fragmented efforts into a streamlined system designed to drive growth in the region.

Build & Fill focuses on laying the groundwork for personalisation. This includes creating websites and e-commerce platforms optimised for local audiences, with bilingual capabilities and culturally relevant design. AI-powered content systems generate dynamic, locally relevant material, while community management tools ensure consistent branding across social platforms. Automatic language detection - offering both Arabic and English interfaces - has been shown to boost engagement by 40% compared to manual selection.

Plan & Promote ensures visibility through integrated marketing strategies enhanced by AI insights. This includes search engine marketing tailored to local search habits, Answer Engine Optimisation (AEO) for Arabic voice queries, and programmatic advertising that aligns with cultural events and seasonal trends. Social media strategies focus on platforms like WhatsApp, where GCC users spend over three hours daily. This pillar ensures consistent messaging across channels while adapting content to regional contexts.

Capture & Store implements data systems that consolidate customer insights from multiple touchpoints. By deploying Customer Data Platforms (CDPs), businesses can track behaviours, map customer journeys, and build detailed profiles beyond basic demographics. Wick’s experience managing over 1 million data points highlights the complexity and scale of effective data management. This pillar also addresses the need for strict data governance to comply with local privacy laws while maximising the use of first-party data.

Tailor & Automate leverages AI to deliver personalised and automated experiences at scale. This includes dynamic content delivery, automated email campaigns, and real-time recommendation engines. These tools adapt to local preferences, factoring in cultural events and shopping patterns. The result is a consistent, personalised experience across all customer interactions, from website visits to post-purchase follow-ups.

The framework’s impact is evident in successful regional projects. For example, Wick supported Baladna, Qatar’s leading dairy producer, by managing their digital ecosystem, including CDP implementation, automated email marketing, and lead nurturing systems. Similarly, Hanro Gulf’s digital transformation aligned its regional operations with global standards through integrated SEO, targeted advertising, and social media strategies tailored for the UAE market.

"Overall, I highly recommend Wick and MB to any business looking for a reliable and effective digital marketing partner. Their expertise, creativity, and dedication to delivering results are truly impressive." – Adelso Quijada, Head of Marketing GCC, Al Marai

Wick’s framework addresses the challenges of AI adoption by offering a clear structure for businesses navigating this complex landscape. With over 27 years of combined digital marketing expertise, Wick’s team brings a deep understanding of GCC markets and the technical know-how needed for successful AI integration. This experience helps businesses close skill gaps while building internal capabilities for long-term success.

Challenges in the GCC Market

Navigating the GCC market comes with its own set of hurdles. While the implementation framework provides a structured path, businesses in the region must address challenges shaped by linguistic diversity, regulatory demands, and cultural intricacies.

Arabic Language and Dialect Complexity

The Arabic language is as diverse as the GCC itself. Modern Standard Arabic differs significantly from the many colloquial dialects spoken across the region, and this variation can create obstacles for AI personalisation. For instance, a chatbot designed for Dubai might struggle to resonate with users in Riyadh without proper linguistic adjustments.

Natural Language Processing (NLP) systems must be trained to understand not just the language but also the nuances of local dialects, tone, and context. This level of adaptation requires significant investment in training data and ongoing fine-tuning. Without it, the potential for misinterpretation rises, undermining personalisation efforts.

Some leading GCC retailers have tackled this by using AI-powered chatbots trained on both local dialects and industry-specific terms. These systems produce product descriptions and marketing content that sound natural, avoiding the pitfalls of mechanical translations. A notable example is the Saudi National Bank, which rolled out a multi-lingual AI chatbot in 2024. This solution, capable of handling banking queries in both Arabic and English, significantly reduced call centre workloads. However, such advancements require constant refinement to keep up with the linguistic diversity of the region.

Data Privacy and Regulatory Compliance

GCC nations have adopted stringent data protection laws, inspired by the EU's GDPR, which create a challenging compliance environment for businesses leveraging AI personalisation. Regulations like the UAE's Personal Data Protection Law mandate clear user consent, local data storage, and transparent data usage policies.

Common compliance pitfalls include inadequate consent mechanisms, storing data outside the region, and unclear data practices. Violations can lead to hefty fines and erode customer trust. To navigate this, businesses must implement advanced solutions that anonymise data while maintaining its analytical usefulness.

The sheer volume of data required for effective personalisation adds another layer of complexity. Nearly 75% of GCC organisations are already using generative AI in at least one business function, but many still lack robust governance frameworks. To address this, AI governance boards are being established across the region to ensure unbiased data practices, guide decision-making, and align with evolving regulations.

Regular audits and employee training on data protection best practices are critical. Companies must strike a balance - gaining deep customer insights while adhering to strict privacy standards. As both technical and legal landscapes evolve, businesses must also consider cultural nuances to truly personalise their marketing strategies.

Respecting Local Culture in Personalisation

Cultural awareness is just as important as language and legal compliance. Personalised content must move beyond stereotypes and accurately reflect the GCC's diverse population, which includes both nationals and expatriates from various backgrounds.

Rather than relying on sensitive attributes like religion or nationality, personalisation engines should focus on behavioural and contextual data. For instance, marketing campaigns for Ramadan or UAE National Day need to use appropriate imagery and language while avoiding oversimplified or clichéd representations.

Timing and context are equally critical. AI systems must be aware of religious holidays, cultural events, and social sensitivities to ensure content is relevant and respectful. Even within the UAE, personalisation strategies might need to vary between emirates, cities, or even neighbourhoods.

To maintain cultural alignment, businesses should audit AI models for bias, use diverse training datasets, and involve local consultants in reviewing content. Transparent feedback mechanisms also allow users to report inappropriate content, enabling continuous improvement.

Comparison of Personalisation Technologies

Choosing the right technology is a key step in addressing these challenges. Each approach comes with its own strengths and weaknesses, and understanding these trade-offs is crucial for success in the GCC market.

Rule-based systems are often favoured for their simplicity and transparency, especially when regulatory compliance is a priority. However, their static nature makes them less suitable for the GCC's dynamic and diverse market.

On the other hand, AI-driven systems excel in delivering tailored experiences but demand careful oversight to ensure they respect cultural and regulatory boundaries. The complexity increases when these systems need to account for multiple languages and cultural contexts.

57% of GCC organisations allocate at least 5% of their digital budgets to generative AI, compared to 33% globally. This highlights the region's commitment to embracing AI despite the challenges. Success lies in blending technological innovation with cultural understanding and regulatory compliance - a task that requires both technical skill and deep knowledge of the region.

Conclusion and Key Takeaways

AI's Role in Personalisation

AI-driven personalisation has redefined customer engagement across the GCC region. An impressive 75% of businesses in the GCC have adopted generative AI models, contributing between AED 77.1 billion and AED 128.5 billion annually to local economies. These figures highlight how personalisation not only enhances customer experiences but also fuels economic growth.

The practical benefits of AI personalisation are evident in real-world applications. For instance, in 2024, a GCC-based retail company developed an AI model capable of estimating real-time product costs by accounting for market conditions and inflation. This empowered their procurement teams to negotiate smarter deals and streamline pricing strategies by analysing factors like ingredient and energy costs. Similarly, an industrial equipment servicing firm introduced a solution that allowed customers to track warranty and repair histories, enabling the business to refine its sales approach.

AI-enabled competitors are also gaining a clear edge, with some reducing costs by 45% and tripling their profits. These advancements stem from AI's ability to deliver tailored content, personalised offers, and optimised strategies, boosting customer engagement, conversion rates, and loyalty across industries like retail, financial services, tourism, and technology.

Next Steps for GCC Businesses

To capitalise on these opportunities, GCC businesses should prioritise practical, high-impact AI solutions. Starting with tools like recommendation engines and Arabic-language chatbots can offer immediate benefits while laying a foundation for scalability.

One structured approach is Wick's Four Pillar Framework, which combines website development, SEO, content creation, social media management, marketing automation, data analytics, and AI-driven personalisation into a cohesive digital strategy. This integrated method ensures businesses can create unified ecosystems that resonate with their audience.

Investing in advanced customer data platforms is equally important. These platforms should consolidate data from multiple touchpoints while adhering to the GCC's stringent data protection regulations. Notably, 63% of GCC organisations are already developing proprietary generative AI models - outpacing the global average of 47% - with a strong focus on cybersecurity and compliance.

However, with over 60% of UAE workers and 57% of Saudi workers feeling unprepared for AI tools, targeted training programmes are essential. Equipping employees with the right skills will help businesses maximise the potential of AI technologies.

Lastly, partnering with local experts who understand both the technology and the region's cultural nuances can make a significant difference. With 76% of the GCC population actively using AI-powered private and government services, consumer readiness is already high. By blending technological innovation with cultural insight, regulatory compliance, and thoughtful implementation, GCC businesses can set themselves apart in an increasingly competitive market. These steps will ensure they remain at the forefront of AI-driven personalisation while staying relevant to their audience.

FAQs

How can businesses in the GCC region protect data privacy while using AI for personalization?

To protect data privacy while using AI for personalisation, businesses in the GCC need to follow a clear and compliant approach. This means aligning with local regulations, such as the UAE's data protection laws, and putting strong security measures in place to safeguard customer information.

Creating a unified digital marketing strategy that incorporates AI-driven personalisation can simplify operations while staying within legal boundaries. By prioritising ethical data practices and being transparent, businesses can not only comply with regulations but also build trust with their audience, ultimately driving growth through tailored customer experiences.

What challenges do businesses in the GCC face when using AI for personalization in a multilingual and culturally diverse market?

Implementing AI-driven personalisation in the GCC presents unique hurdles, largely due to the region's multilingual nature and diverse cultural landscape. To succeed, businesses must tackle language barriers by equipping AI systems to handle multiple languages, particularly Arabic and English, while also accounting for local dialects and linguistic subtleties.

The region's cultural diversity adds another layer of complexity. AI must be designed to respect regional customs and preferences, ensuring that personalised content aligns with societal norms and traditions. On top of this, adherence to local data privacy regulations is non-negotiable when gathering and processing user data for personalised insights. Overcoming these challenges calls for meticulous planning and the development of robust AI systems capable of delivering tailored, meaningful experiences that resonate with the GCC's unique audience.

How do businesses in the GCC region use AI to personalise content while respecting cultural values during events and holidays?

Businesses across the GCC region are tapping into AI-powered personalisation to create content that truly connects with their audience while respecting cultural nuances. During major occasions like Ramadan or UAE National Day, AI tools come into play by analysing consumer behaviour and preferences. This allows brands to craft messages that not only resonate with local traditions but also align with the region's deeply rooted values.

By integrating elements like localised language, culturally appropriate imagery, and thematic relevance, companies can make their campaigns feel both genuine and respectful. For example, AI can suggest designs or messaging that highlight themes such as family togetherness or the spirit of generosity, which are central to Ramadan. Striking the right balance between tailored content and cultural respect helps businesses build trust and foster deeper connections with their audience.