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AI is redefining retail: Now it’s time to operationalise it

Lenovo’s Chadie Ghadie explores how Middle East retailers are moving beyond AI experimentation to embed the technology across customer experience, operations and infrastructure

Chadie Ghadie
Chadie Ghadie

05 October, 2026

AI is redefining retail: Now it’s time to operationalise it

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Retail is entering a new phase, one defined less by experimentation and more by execution.

Across the Middle East, retailers are navigating a more complex environment than at any point in recent years. Cost pressures remain high, consumer expectations continue to rise, and the pace of technological change is accelerating. At the same time, AI has moved firmly into the mainstream, shaping how customers discover products, how stores operate, and how decisions are made across the value chain.

What we’re seeing now is a shift in focus. Retailers are no longer asking what AI could do. They’re asking how to make it work, consistently and at scale, across their own environments.

That question is being driven by pressure on multiple fronts at once: tightening margins, volatile supply chains, ongoing labour constraints, and rising customer expectations, all while being asked to accelerate digital transformation. AI is increasingly where retailers are turning for answers. Recent insights from Lenovo’s CIO Playbook, developed in collaboration with IDC, show how quickly this shift is happening in the Middle East: 92% of retail organisations plan to increase their AI budgets in the next 12 months, and focus on Agentic AI has grown 27% year-on-year.

These investments aren’t happening in a vacuum. IT leaders are making them in response to clear business priorities, and retailers are showing increasing alignment between their AI initiatives and measurable outcomes, including revenue growth and operational efficiency goals.

Confidence in AI’s value is high across the industry. In the Middle East, 91% of organisations expect a positive return on their AI initiatives, generating an average of $2.74 for every dollar invested, reinforcing the shift from experimentation to scale with measurable impact.

What’s emerging is not just a wave of innovation, but a redefinition of how retail operates. AI is being embedded into core processes, from personalisation and merchandising to inventory and store operations, with speed and execution becoming the critical differentiators.

The Store Is Being Reimagined, Not Replaced

The role of the store is evolving as part of this transformation. Physical retail needs to be more connected, more responsive, and more intelligent. Associates are supported by real-time insights, customers expect personalised engagement as a default, and operations increasingly rely on data flowing seamlessly across systems. It’s no coincidence that improving customer experience now ranks as the top focus for AI investment: retailers recognise that every interaction is an opportunity to differentiate.

Delivering that level of capability requires more than isolated solutions. It depends on a foundation that brings infrastructure, devices, data, and services together in a coordinated way.

Why Hybrid AI Matters

Retail environments generate enormous volumes of data across stores, warehouses, and e-commerce platforms, and not all of that data belongs in the same place. Some workloads need the speed of processing at the edge, close to where a transaction or interaction actually happens. Others benefit from the scale of the cloud. Some are best kept on-premise for cost, security, or compliance reasons. Hybrid AI allows retailers to process the right workload in the right place, balancing latency, cost, security, and scalability, rather than forcing every use case through a single environment.

Lenovo’s approach is built around this idea. Combining edge, cloud, and on-premise capabilities to enable intelligence where it matters most, and in collaboration with NVIDIA, the Lenovo Hybrid AI Advantage helps retailers move beyond pilots and proofs of concept towards environments where AI is embedded into everyday operations.

Governance Has to Scale Alongside Innovation

As AI adoption matures, governance becomes just as important as innovation. Retailers need to ensure customer data is protected, that models are accountable, and that AI deployments align with regulatory and organisational requirements. This matters more, not less, as AI moves from isolated pilots into systems that touch pricing, inventory, and personal customer data at scale. Building governance into the foundation of an AI deployment, rather than retrofitting it after the fact, is what allows retailers to scale AI with confidence rather than exposure.

A Connected Retail Ecosystem

One of the most important developments we’re seeing is the move towards more connected retail ecosystems. Customers experience brands across multiple touchpoints, and they expect consistency as they move between them. At the same time, retailers are looking to connect systems, channels, and data in ways that improve both efficiency and engagement.

AI plays a central role in enabling this. Whether it’s supporting store teams, powering customer interactions, or helping optimise operations, the value comes from how these capabilities work together, not from individual features in isolation.

This is where integration becomes critical. Retailers need solutions that fit into their existing environments, scale across locations, and adapt as their needs evolve. That requires both the right technology foundation and the right partner ecosystem to support it.

Bringing the Store of the Future to Life

At Shoptalk Europe 2026, Lenovo and NVIDIA are bringing together the capabilities that Middle East retailers are increasingly asking about, not as concepts, but as working deployments.

The demonstrations reflect where retail AI is actually being applied today:

  • AI Retail Assistants: drawing on insights across multiple systems to help service teams resolve customer issues faster and deliver consistent support across in-store and digital channels.
  • Retail Floor Assistant: an in-store digital agent that guides shoppers and surfaces relevant products through conversational AI, designed for the kind of high-footfall environments common across Gulf retail.
  • Smart Store Services: connecting store systems to monitor operations in real time and surface actionable insights for floor teams and operations managers.
  • Digital shelves and predictive maintenance: AI-driven monitoring that reduces downtime and supports more efficient store management across distributed networks.
  • Analytics and workflow automation: helping retailers process data and manage operations consistently across multiple locations.

These are not pilots. They reflect where the industry is already moving, and where Middle East retailers, with some of the highest AI investment intentions globally, are increasingly headed.

Partnering for the Next Phase of Retail

Execution is where retail AI strategies succeed or stall. Across the Middle East, 91% of organisations expect positive ROI from their AI investments, but only 46% of proofs of concept reach production. Integration, governance, staff adoption, infrastructure at scale: this is where complexity lives.

For retailers in the region, that execution gap is the defining challenge. Lenovo and NVIDIA are focused on closing it, helping retailers move from pilot to production in the environments they actually operate in. That is what turns AI investment into AI impact.

  • Chadie Ghadie is CTO for Lenovo Infrastructure Solutions Group (Middle East & Africa)

AWR Group’s next big advantage? Using AI to spot customer friction before customers even notice

The unified CX Policy and Standards are intended to ensure that customer interactions, whether they take place in a showroom, service centre or through digital platforms

Nida Sohail
Nida Sohail

05 October, 2026

AWR Group’s next big advantage? Using AI to spot customer friction before customers even notice

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For years, customer experience has been measured by how quickly a company can respond when something goes wrong. A complaint arrives, a service issue is logged, a call is made and a solution is offered.

But that model is changing.

At AWR Group, the next frontier of customer experience is not simply fixing friction faster. It is identifying that friction before customers encounter it in the first place, using real-time customer insights, predictive analytics, artificial intelligence and a stronger data foundation to anticipate needs and reshape how the organisation makes decisions.

The shift comes as AWR Group places customer experience and AI among its strategic priorities, with the two agendas increasingly being developed as complementary parts of the same transformation.

“Technology itself does not create a competitive advantage; the advantage comes from combining AI and strong data foundations with human judgement and clear governance,” Mahesh Rohra, chief strategy officer, AWR Group, said.

That philosophy is at the centre of the group’s first unified CX Policy and Standards, designed to establish greater consistency across customer interactions while creating the data infrastructure needed to support more advanced digital capabilities.

Image credit: Supplied

From fragmented experiences to one customer view

As customer expectations rise across sectors, AWR Group sees consistency and trust becoming increasingly important sources of differentiation.

The group has responded by cleaning, consolidating and governing customer information into a single trusted “golden record”, reducing internal complexity while creating what it views as the foundation for advanced analytics and AI.

“Exceptional customer experience can no longer be fragmented across business units or touchpoints; it must be built on strong data foundations and clear governance,” Rohra said.

The unified CX Policy and Standards are intended to ensure that customer interactions, whether they take place in a showroom, service centre or through digital platforms, meet consistent expectations around quality, transparency and service.

The strategic significance goes beyond standardisation. With customer information unified, the organisation can potentially identify patterns across interactions that may otherwise remain hidden inside individual business units.

That creates the possibility of moving CX from a largely reactive function to a predictive one.

When AI becomes a customer-experience engine

AWR Group’s approach is not to position AI as a replacement for human interaction. Instead, the group sees technology as a way to remove operational complexity and give employees better information at the moment decisions need to be made.

“Rather than distancing us from our customers, AI eliminates operational complexity and delivers actionable customer insights at speed,” Rohra said.

The objective, he added, is to put digital capabilities into the hands of employees so they can make faster and smarter decisions while concentrating on areas where human involvement remains critical, empathy, bespoke service and trusted relationships.

That distinction could become increasingly important as AI becomes more widespread across industries. If access to AI tools becomes commonplace, technology itself may offer less differentiation. The competitive gap could instead come from how effectively companies connect those tools to reliable data, established processes and employee decision-making.

For AWR Group, that means embedding AI and automation directly into operations rather than treating them as isolated technology projects.

Predicting friction before customers feel it

The clearest expression of this strategy comes in the Group’s use of real-time customer insights and predictive analytics.

“Seamless customer experiences become the baseline expectation for modern consumers,” Rohra said. “AWR Group stays ahead of the moving bar by using real-time customer insights and predictive analytics to resolve friction points before the customer even notices them.”

That represents a fundamental change in the economics of CX.

Instead of waiting for customer feedback to reveal a problem, predictive systems can analyse operational and customer data to identify signals that may point to emerging friction. Employees can then act on those insights before the issue becomes a visible customer complaint.

The approach also connects CX directly to operational performance. Updating digital tools, standardising best practices across business units and providing employees with immediate access to data can help turn routine interactions into more personalised experiences.

Rohra said AWR Group’s market-leading Net Promoter Scores substantiate the progress of its CX transformation.

The broader ambition is to make customer experience an engine for productive growth rather than simply a measure of service quality.

From headcount-led growth to intelligence-led growth

The same principle is shaping AWR Group’s wider strategy as the UAE and the broader region undergo major economic and technological transformation.

National programmes including Vision 2030, We the UAE 2031, Operation 300bn, the National AI Strategy and UAE Net Zero 2050, alongside infrastructure developments such as Etihad Rail, are reshaping trade, connectivity and competitiveness, according to Rohra.

At the same time, traditional sector boundaries are becoming less distinct. Automotive is moving toward mobility and connectivity, logistics is evolving into data-driven platforms, while manufacturing is becoming increasingly automated and digital.

Against that backdrop, AWR Group is focusing less on expansion for its own sake and more on what Rohra describes as “productive growth”.

“Productive growth means delivering stronger margins, sharper customer insights, faster decision-making, and leaner, less complex operations,” he said.

That shift also changes how the group thinks about competitive advantage.

Rather than assuming that scale comes primarily from adding people, physical locations or assets, AWR Group is investing in capabilities that can allow the organisation to respond faster as markets evolve.

Agentic AI pushes decision-making further

Predictive analytics is only one part of that equation. AWR Group also sees Agentic AI as a technology capable of changing how work is performed and decisions are made.

According to Rohra, these technologies can transform raw enterprise data into forward-looking operational intelligence while automating complex, process-heavy activities such as inventory management, reporting and forecasting.

The result, he said, can be faster execution and less time spent by employees on repetitive work.

But the larger opportunity lies beyond automation.

“By synthesising vast market signals, internal knowledge, and operational data into clear, actionable insights, predictive technologies enable teams to navigate complex choices much faster,” Rohra said.

That model keeps human judgement at the centre while giving decision-makers a much larger and faster flow of information.

The biggest AI challenge is not the technology

The UAE’s AI opportunity is already drawing significant economic attention, with 2025 industry estimates cited by AWR Group suggesting AI could contribute around US$100bn to the country’s GDP by 2030.

For businesses, however, widespread access to AI may make implementation less of a technology race and more of an execution challenge.

“The real differentiator will not be access to technology, but the ability to deploy it responsibly and effectively,” Rohra said.

That requires clean and connected data, governance, redesigned workflows and employees who are comfortable using AI alongside their own judgement.

Without those foundations, companies can end up with disconnected pilots, inconsistent outputs and limited returns. With them, AI can become a repeatable enterprise capability supporting productivity, forecasting, decision-making and customer relevance.

People remain at the centre of the transformation

For all the focus on AI, AWR Group identifies employee adoption as the decisive factor in whether digital transformation delivers lasting value.

“Technology itself does not generate value; value is created when people understand, trust, and actively use these tools to improve their daily work,” Rohra said.

The Group is therefore combining technology deployment with learning and adoption initiatives, including the rollout of Gemini Enterprise, dedicated learning and development programmes and an internal AI Champions network.

The objective is to encourage peer-to-peer learning and practical experimentation, while allowing employees to combine professional expertise with digital tools.

That people-first approach reflects the central idea behind AWR Group’s CX strategy: technology works best when it strengthens human decision-making rather than attempting to replace it.

Building capabilities for a changing region

AWR Group is also translating its broader technology strategy into customer-facing propositions, including AWR Pay and AWR Charge+.

The initiatives form part of a wider effort to prepare for a business environment in which today’s competitors may not necessarily come from traditional industry categories.

“Tomorrow’s competitors may emerge from sectors that barely intersect today,” Rohra said.

Rather than trying to predict every market movement, the group is focusing on building the internal capabilities needed to respond when those movements occur.

That includes AI, automation, data governance, operational agility and a workforce capable of combining digital capability with human judgement.

In that environment, customer experience becomes more than a service metric. It becomes an early-warning system, a source of intelligence and potentially a mechanism for discovering what customers need before they have to articulate it.

The corporate competition of the next decade may therefore be defined by a deceptively simple question: who can understand the customer soonest?

For AWR Group, the answer lies in bringing together data, AI and human judgement, not to make customer relationships less human, but to give people the intelligence to make those relationships more relevant, responsive and enduring.

Middle East crude oil exports exceed pre-war levels but tanker attacks increase

Middle East crude exports climbed above pre-war levels on several days in late September, even as tanker attacks intensified in and around the Strait of Hormuz

Reuters
Reuters

05 October, 2026

Middle East crude oil exports exceed pre-war levels but tanker attacks increase

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Crude oil exports from the Middle East rose above pre-war levels in four of the seven days of the final week of September, shipping data showed on Monday, despite attacks on vessels passing through the Strait of Hormuz.

Crude exports from the region exceeded pre-war levels on September 24 and between September 27 and 29, rising to between 19.5 million barrels per day and 22.5 million bpd, provisional data from ship-tracking firm Kpler showed.

Exports averaged 18 million bpd between March 2025 and February this year beforethe US-Israeli war with Iran began.

The 7-day moving average for crude exports was at 18.5 million bpd on October 1, the data showed. These include transits via the Strait of Hormuz, the Red Sea, exports from terminals and ship-to-ship transfers in the Gulf of Oman.

The overall tally for crude, oil products, chemicals and non-gas liquids averaged 22.4 million bpd in the seven days to September 30, Kpler data showed.

The number of liquefied natural gas cargoes exiting the Strait of Hormuz also rose in September to its highest monthly level since February.

The figures exclude any vessels that might have crossed the strait with their Automatic Identification System transponders turned off to avoid detection.

Before the Iran war started on February 28, the strait typically handled about 125 large commercial vessels per day, including tankers, gas carriers, bulkers and container vessels, accounting for some 20% of the world’s daily crude oil and LNG supply.

Ship attacks

However, attacks on tankers continued in and around the Strait of Hormuz, with at least seven incidents reported, shipping intelligence firm Marisks said in a report on Saturday.

The very large crude carrier Kazimah III was reportedly struck on October 1 by an unknown projectile while operating in the strait, causing a fire onboard the tanker, it added.

“All crew members were reported safe and were subsequently evacuated from the vessel,” Marisks said.

Kazimah III was last seen discharging 2 million barrels of Kuwaiti crude at the Ras Markaz port on the coast of Oman on September 17, Kpler data showed. Its owner, Kuwait Oil Tanker Company, did not immediately respond to a request for comment outside office hours.

The United Kingdom Maritime Trade Operations agency has reported at least one attack a day in the Strait of Hormuz or in the Gulf of Aden since October 2.

Marisks said merchant vessels transiting the Strait of Hormuz face a “heightened and increasingly unpredictable kinetic threat” given the recent sharp increase in traffic.

“Current intelligence suggests that the recent pattern of incidents may not necessarily represent deliberate targeting of individually selected merchant vessels,” Marisks said.

“Instead, available information indicates the possibility that Iranian forces are launching missiles into a predetermined engagement area or ‘kill box’, with weapons potentially acquiring and locking onto available radar signatures within that area.”

Physical presence within the engagement zone at the relevant time could itself represent the primary exposure, it added.

DEWA’s Smart System delivers a 95% cut in bank guarantee processing time

The system strengthens bank guarantee management through faster, more accurate and resilient procedures, while supporting the optimal use of resources and boosting workforce productivity

Nida Sohail
Nida Sohail

04 October, 2026

DEWA’s Smart System delivers a 95% cut in bank guarantee processing time

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Dubai Electricity and Water Authority (DEWA) has cut transaction turnaround time by 95 per cent through its Smart Bank Guarantee System, while reducing reliance on physical bank guarantees by 74 per cent, Saeed Mohammed Al Tayer, MD and CEO of DEWA, announced.

The system processes approximately 2,500 bank guarantees annually, with a combined value of around Dhs1bn, highlighting the scale of the authority’s digital transformation efforts, a WAM report said.

Read more: From days to minutes: DEWA reduces refunds processing time to only 8 minutes

“We continue to leverage cutting-edge digital technologies and artificial intelligence (AI) to redesign organisational operations and enhance efficiency, supporting Dubai’s vision for digital leadership while delivering faster, more resilient and proactive services,” Al Tayer said.

“We are developing an AI-driven integrated operational model that achieves the highest levels of operational efficiency and sustainability, contributes to zero bureaucracy and enhances customer and employee experiences,” he added.

Automation and control

Al Tayer said the system strengthens bank guarantee management through faster, more accurate and resilient procedures, while supporting the optimal use of resources and boosting workforce productivity. It also advances DEWA’s use of Robotic Process Automation (RPA) to automate repetitive procedures and tasks, reducing routine manual work.

The Smart Bank Guarantee System manages the full bank guarantee lifecycle through integrated digital processes covering receipt, review, updates and follow-up. It replaces paper-based procedures and manual tracking with a digital ecosystem that provides real-time tracking and data updates, while improving data quality, governance and financial control.

The system uses automated processing and verification powered by RPA-based validation, SWIFT authentication and SAP-linked digital audit trails.

The system has also received a five-star rating at the International Best Practice Competition, underscoring its effectiveness and positioning DEWA’s digital approach as a model for improving operational efficiency, transparency and service delivery, and strengthening the authority’s broader digital transformation agenda across key operations globally.

G7 agrees to coordinated 100 million barrel release to stabilise energy markets

The G7 reaffirmed its commitment not to impose restrictions on energy and energy-product exports between member countries and called on other producers to avoid bans that could add to market tensions

Neesha Salian
Neesha Salian

04 October, 2026

G7 agrees to coordinated 100 million barrel release to stabilise energy markets
Image: Getty Images/ For illustrative purposes

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Group of Seven leaders agreed to coordinate the release of 100 million barrels through the International Energy Agency over four months, including a substantial diesel release in the first 20 days, as they seek to stabilise energy markets and ease pressure from surging prices.

The release will begin immediately and include a substantial amount of diesel front-loaded within the first 20 days by G7 members and partners, according to a joint statement issued after a virtual meeting of leaders.

The G7 said it would also coordinate refinery maintenance schedules to avoid simultaneous shutdowns and temporarily raise utilisation rates where feasible. It encouraged countries with significant refining capacity to increase production of refined products, particularly diesel.

Leaders asked the IEA to monitor implementation of commitments made in March and said they would meet within the IEA framework in the coming days to consider further diesel releases if necessary.

The G7 also reaffirmed its commitment not to impose restrictions on energy and energy-product exports between member countries and called on other producers to avoid bans that could add to market tensions.

The IEA was asked to assess the impact of the measures on energy security and market stability and provide a follow-up report within 20 days, including recommendations on future responses and the replenishment of emergency stocks.

The leaders also condemned what they described as continued Iranian attacks against neighbouring countries and disruption to international trade and energy security, and called for the restoration of navigational rights and principles in the Strait of Hormuz.

They said they would intensify efforts towards that objective and commended the US for efforts to maintain the flow of commerce through the strait.

The G7 also said sanctions against Russia would remain in place while members worked with the IEA and other international partners to limit spillovers into fuel, gas and other commodity markets.

The measures come as global energy markets face sharp volatility and elevated fuel prices.

Read: UAE announces fuel prices: Here’s how much you will pay from October 1

Global Food Week 2026 to bring FAO, WOAH and policymakers to Abu Dhabi

Global Food Week will also host the FAO Policy Majlis, a dedicated platform for policy dialogue on agrifood systems transformation in the Near East and North Africa

Neesha Salian
Neesha Salian

04 October, 2026

Global Food Week 2026 to bring FAO, WOAH and policymakers to Abu Dhabi
Image: Getty Images/ For illustrative purposes

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Global Food Week 2026 will bring together international organisations, policymakers, investors and food-sector specialists in Abu Dhabi this week, with discussions focused on food security, agrifood systems, animal health and agricultural technology.

The event, organised by ADNEC Group, a Modon company, in partnership with the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), will run from October 6 to 8 at ADNEC Centre Abu Dhabi.

Participants will include representatives from the Food and Agriculture Organisation of the United Nations (FAO) and the World Organisation for Animal Health (WOAH), alongside governments, development institutions, researchers, private-sector companies and investors.

The programme will include the WOAH GCC & Africa Workshop, which will examine technical and trade cooperation between the Gulf and Africa, as well as animal health frameworks and cross-border disease challenges affecting food supply chains.

Global Food Week will also host YALAFAST, or Youth Action Leadership for Agrifood Awareness and Systems Transformations, an FAO youth leadership programme that brings together young participants from different countries to discuss agrifood systems and build international networks.

The FAO Policy Majlis will take place on October 7 and 8 and focus on agrifood systems transformation across the Near East and North Africa.

The programme will bring together policymakers, researchers, youth representatives, financing partners and private-sector stakeholders to discuss areas including science and technology, innovation, youth participation and investment in food systems.

Other events taking place during the week include the Global Food Security Summit, AgriTech Forum, Farmers Majlis and the Abu Dhabi Honey Forum, organised in collaboration with Apimondia.

The broader agenda will focus on policies, technologies and financing models intended to improve the resilience and efficiency of food systems and strengthen food security.

Read: iD Fresh’s PC Musthafa on how his competition is the grinder at home

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AI is redefining retail: Now it’s time to operationalise it