Report Overview

Saudi Arabia AI in Retail Market – Industry Trends & Forecast Report, 2031

Saudi Arabia AI in Retail Market size was estimated at USD 134.39 million in 2024. During the forecast period between 2025 and 2031, Saudi Arabia AI in Retail Market size is projected to grow at a robust CAGR of 26.8% reaching a value of USD 708.3 million by 2031. Prominent drivers of the market include the rapid adoption of AI technologies to enhance personalization, optimize operations, and improve customer engagement in the retail sector. As consumer expectations rise, retailers in Saudi Arabia are increasingly leveraging AI to deliver tailored shopping experiences, supported by a tech-savvy population and a surge in e-commerce. Vision 2030’s emphasis on digital transformation is further accelerating AI integration across retail formats, including fashion, grocery, and online platforms. Technologies such as machine learning, natural language processing, computer vision, and predictive analytics are being deployed to enhance inventory management, fraud detection, and customer service. Moreover, investments in IoT, automation, and data governance frameworks are enabling real-time inventory tracking, automated checkout systems, and actionable insights from structured and unstructured data. Retailers are also focusing on upskilling employees and fostering an open innovation ecosystem to maximize AI’s potential while ensuring empathetic integration. As AI advances through generative capabilities and edge computing, retailers are adopting a human-centric approach—balancing automation with personal engagement, addressing employee concerns, and creating value through innovation, collaboration, and sustainable, AI-powered solutions tailored to the Saudi market.

AI in Retail – Overview

AI in retail uses technologies like machine learning (ML) and computer vision to enhance customer experiences, optimize inventory, and streamline operations. It enables personalized recommendations, dynamic pricing, and demand forecasting. By analyzing data, AI helps retailers make smarter decisions, improve efficiency, and deliver more tailored and engaging shopping experiences.

Saudi Arabia AI in Retail Market

Growth Drivers

Vision 2030 and Government Initiatives

Saudi Arabia’s Vision 2030 serves as a transformative blueprint guiding the Kingdom toward a diversified, innovation-driven economy, with artificial intelligence (AI) playing a central role across key sectors, including retail. The establishment of the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019 marked a pivotal move to build a world-class AI ecosystem, enabling both public and private sector advancement. Government-led initiatives, such as the National Strategy for Data and AI (NSDAI), are accelerating AI integration in retail by promoting digital infrastructure, data analytics, and customer-centric technologies. Strategic investments, including KAUST’s Shaheen III supercomputer and platforms like Estishraf, are facilitating data-driven governance and private sector innovation. These efforts have created a supportive regulatory framework that encourages retail businesses to adopt AI for personalized customer experiences, efficient inventory management, and enhanced supply chain visibility. The rapid growth of e-commerce—over 20% in 2021—coupled with high smartphone penetration, further reflects the Kingdom’s digital momentum. Additionally, Vision 2030’s focus on entrepreneurship, ethical AI use, and AI-focused education has energized retail innovation, positioning Saudi Arabia as a leading market for AI-driven retail transformation.

Challenges

Data Privacy Concerns and Regulatory Compliance

Data privacy concerns and regulatory compliance pose significant challenges to the adoption and growth of AI in the Saudi Arabia retail sector. Strict regulations surrounding the handling of consumer data, coupled with the need to ensure transparency and security, can delay the implementation of AI technologies. Retailers must navigate complex legal frameworks to avoid penalties, which may slow the pace of AI integration in their operations. Ensuring compliance with both local and international data protection laws is essential for building trust with consumers, yet it can also act as a barrier to the full potential of AI-driven innovations in retail.

Impact of Escalating Geopolitical Tensions on Saudi Arabia AI in Retail Market

Escalating geopolitical tensions could significantly impact the growth of Saudi Arabia AI in Retail Market by introducing both strategic opportunities and operational challenges. The Kingdom's partnerships with Chinese tech firms like Alibaba and SenseTime, while bolstering local AI capabilities, may attract scrutiny from Western nations due to national security concerns. Conversely, Saudi Arabia's substantial investments in AI infrastructure, such as the proposed USD 40 billion AI fund and collaborations with global entities, position it as a competitive player in the global AI landscape. However, navigating these geopolitical dynamics requires careful balancing to mitigate risks and capitalize on emerging opportunities in the retail sector.​

Saudi Arabia AI in Retail Market

Segmental Coverage

Saudi Arabia AI in Retail Market – By Component

Based on component, Saudi Arabia AI in Retail Market is bifurcated into Solutions and Services segments. The solutions segment holds a higher share in Saudi Arabia AI in Retail Market by component. The segment’s growth is driven by the increasing adoption of AI-based technologies to address operational challenges faced by retailers. These advanced solutions enhance supply chain, logistics, and warehouse management while also elevating the overall customer experience. Also, the solution segment includes AI-based analytics platforms, customer behavior tracking tools, and personalized recommendation engines.

Saudi Arabia AI in Retail Market – By Technology

Saudi Arabia AI in Retail Market by technology is divided into Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, Chatbots & Conversational AI, and Robotics Process Automation (RPA) segments. The ML segment holds the largest share of Saudi Arabia AI in Retail Market by technology. It is driven by its transformative impact across retail operations. ML algorithms excel at processing vast datasets, enabling data-driven decision-making and enhancing marketing strategies. Retailers leverage ML for customer segmentation, tailoring personalized experiences that improve engagement and boost conversion rates. Predictive analytics powered by ML further enhances lead scoring and dynamic pricing optimization, ensuring competitive positioning in the market. Additionally, ML-based chatbots and personalized content recommendations are improving customer service and loyalty. With its role in fraud detection and real-time decision-making, machine learning remains a cornerstone technology, empowering Saudi retailers to enhance efficiency, profitability, and customer satisfaction.

Saudi Arabia AI in Retail Market – By Application

On the basis of application, Saudi Arabia AI in Retail Market is segmented into Customer Relationship Management (CRM), Supply Chain & Logistics, Inventory Management, Virtual Try-On & Augmented Reality (AR), Fraud Detection & Prevention, Product Recommendation & Personalization, In-store Visual Monitoring & Analytics, and Chatbots & Virtual Assistants (VAs) segments.

Competitive Landscape

Major players operating in Saudi Arabia AI in Retail Market include IBM Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), Amazon Web Services, Inc. (AWS), SAP SE, Oracle Corporation, NVIDIA Corporation, Intel Corporation, Salesforce, Inc., SAS Institute Inc., C3.ai, Inc., STC AI (subsidiary of Saudi Telecom Company), SDAIA (Saudi Data and Artificial Intelligence Authority), Sitecore, and Zoho Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2025 - Prime Markets became the first retailer in Saudi Arabia to deploy Simbe’s Tally robot, enhancing inventory management and customer experience. Tally uses AI and computer vision to autonomously scan store aisles, detect stockouts, pricing errors, and misplaced items.

• In March 2025 - Saudi Arabia’s Public Investment Fund (PIF) launched Al Waha Duty Free Operating Co., the Kingdom’s first locally-owned duty-free company, to strengthen its travel retail sector and boost tourism. Al Waha aims to establish luxury retail outlets at key locations, offering a variety of products, including exclusive Saudi items.

Scope of the Report

By Component

• Solutions

• Services

By Technology

• Machine Learning (ML)

• Natural Language Processing (NLP)

• Computer Vision

• Chatbots & Conversational AI

• Robotics Process Automation (RPA)

By Application

• Customer Relationship Management (CRM)

• Supply Chain & Logistics

• Inventory Management

• Virtual Try-On & Augmented Reality

• Fraud Detection & Prevention

• Product Recommendation & Personalization

• In-store Visual Monitoring & Analytics

• Chatbots & Virtual Assistants

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia AI in Retail Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Vision 2030 & Government Initiatives
         2. Rising E-commerce and Digital Adoption
         3. Enhance Customer Engagement
      2. Restraints
         1. Data Privacy & Regulatory Compliance
         2. Talent Acquisition & Skill Gaps
      3. Opportunities
         1. Voice Commerce & Smart Assistants
         2. Sustainable & Ethical Shopping
      4. Challenges
         1. Infrastructure & Integration
         2. Consumer Trust & Acceptance
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia AI in Retail Market: Marketing Strategies
5. Saudi Arabia AI in Retail Market: Pricing Analysis
6. Saudi Arabia AI in Retail Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
         1. Solutions
            1. AI-based Analytics Platforms
            2. Customer Behavior Tracking Tools
            3. Personalized Recommendation Engines
         2. Services
            1. Managed Services
            2. Professional Services
      2. By Technology
         1. Machine Learning (ML)
         2. Natural Language Processing (NLP)
         3. Computer Vision
         4. Chatbots & Conversational AI
         5. Robotics Process Automation (RPA)
      3. By Application
         1. Customer Relationship Management (CRM)
         2. Supply Chain & Logistics
         3. Inventory Management
         4. Virtual Try-On & Augmented Reality (AR)
         5. Fraud Detection & Prevention
         6. Product Recommendation & Personalization
         7. In-store Visual Monitoring & Analytics
         8. Chatbots & Virtual Assistants (VAs)
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Saudi Arabia AI in Retail Market, Company Market Share (%) Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia AI in Retail Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. IBM Corporation
   2. Microsoft Corporation
   3. Google LLC (Alphabet Inc.)
   4. Amazon Web Services, Inc. (AWS)
   5. SAP SE
   6. Oracle Corporation
   7. NVIDIA Corporation
   8. Intel Corporation
   9. Salesforce, Inc.
   10. SAS Institute Inc.
   11. C3.ai, Inc.
   12. STC AI (a subsidiary of Saudi Telecom Company)
   13. SDAIA (Saudi Data and Artificial Intelligence Authority)
   14. Sitecore
   15. Zoho Corporation
   16. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Saudi Arabia AI in Retail Market Segmentation

Figure 2   Saudi Arabia AI in Retail Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Saudi Arabia AI in Retail Market Size, By Value (USD Million), 2019–2031

Figure 5   Saudi Arabia AI in Retail Market Share, By Component, By Value (USD Million) 2019–2031

Figure 6   Saudi Arabia AI in Retail Market Share, By Technology, By Value (USD Million) 2019–2031

Figure 7   Saudi Arabia AI in Retail Market Share, By Application, By Value (USD Million) 2019–2031

List of Tables

Table 1      Saudi Arabia AI in Retail Market Share, By Component, By Value (USD Million) 2019–2031

Table 2      Saudi Arabia AI in Retail Market Share, By Technology, By Value (USD Million) 2019–2031

Table 3      Saudi Arabia AI in Retail Market Share, By Application, By Value (USD Million) 2019–2031

Table 4      IBM Corporation Company Overview

Table 5      IBM Corporation Financial Overview

Table 6      Microsoft Corporation Company Overview

Table 7      Microsoft Corporation Financial Overview

Table 8      Google LLC (Alphabet Inc.) Company Overview

Table 9      Google LLC (Alphabet Inc.) Financial Overview

Table 10    Amazon Web Services, Inc. (AWS) Company Overview

Table 11    Amazon Web Services, Inc. (AWS) Financial Overview

Table 12    SAP SE Company Overview

Table 13    SAP SE Financial Overview

Table 14    Oracle Corporation Company Overview

Table 15    Oracle Corporation Financial Overview

Table 16    NVIDIA Corporation Company Overview

Table 17    NVIDIA Corporation Financial Overview

Table 18    Intel Corporation Company Overview

Table 19    Intel Corporation Financial Overview

Table 20    Salesforce, Inc. Company Overview

Table 21    Salesforce, Inc. Financial Overview

Table 22    SAS Institute Inc. Company Overview

Table 23    SAS Institute Inc. Financial Overview

Table 24    C3.ai, Inc. Company Overview

Table 25    C3.ai, Inc. Financial Overview

Table 26    STC AI (subsidiary of Saudi Telecom Company) Company Overview

Table 27    STC AI Financial Overview

Table 28    SDAIA (Saudi Data and Artificial Intelligence Authority) Company Overview

Table 29    SDAIA Financial Overview

Table 30    Sitecore Company Overview

Table 31    Sitecore Financial Overview

Table 32    Zoho Corporation Company Overview

Table 33    Zoho Corporation Financial Overview