The Complete Guide to Using AI in the Retail Industry in Saudi Arabia in 2025

AI is reshaping Saudi retail in 2025: Grand View Research forecasts a blistering 27% CAGR for AI in Saudi retail (2025–2030) and roughly US$527.3M in revenue by 2030, while regional reports show consumers are already adopting AI features - 53% of MENA shoppers have used visual search and retailers are using AI for inventory forecasting, chatbots and immersive try‑ons to lift conversion and cut waste (Grand View Research report on AI in Saudi retail, Consultancy‑ME analysis of AI-powered shopping experiences in MENA).

With about 4,549 shopping malls and rapid urbanization, the opportunity is practical as well as strategic: short, workforce-focused training - like Nucamp's 15‑week AI Essentials for Work - helps store teams apply AI tools and prompts to personalize offers and optimize supply chains (Nucamp AI Essentials for Work syllabus).

Imagine footfall heatmaps and real‑time price tweaks turning a busy Riyadh aisle into a precision revenue engine - small changes, big returns.

Metric	Value / Source
CAGR (2025–2030)	27% - Grand View Research
Projected retail AI revenue (2030)	US$527.3M - Grand View Research
MENA shoppers using visual search	53% - Consultancy‑ME
Number of shopping malls in KSA (2025)	≈4,549 - xMap

The AI-focused flagship in Saudi Arabia is LEAP 2025 - a four‑day hub that turned the Riyadh Exhibition and Convention Centre into a buzzing innovation lab where more than 680 startups, 1,000+ speakers and 1,800+ global brands showcased next‑gen tools and services, and day‑one announcements alone unlocked roughly US$14.9 billion in AI investments aimed at cloud, data centres and industrial AI (see the LEAP 2025 Riyadh highlights and the reporting on the US$14.9bn investment surge).

For retailers this matters because LEAP didn't just gather big names - it seeded commitments from Google, Qualcomm, Databricks, SambaNova, Groq and major cloud players that expand regional AI infrastructure, talent pipelines and PaaS options that stores will rely on for real‑time pricing, computer vision and personalized shopping.

Think of LEAP as the place where deal announcements meet practical tools: the conference's scale and corporate pledges accelerate the availability of affordable AI services and local training partnerships that retail teams can tap into across Saudi Arabia.

Metric	Value / Source
Dates	9–12 February 2025 - LEAP
Announced AI investments	US$14.9 billion - AIMagazine / Plain Concepts
Startups	680+ - Plain Concepts
Speakers	1,000+ - Plain Concepts
Global brands / exhibitors	1,800+ - Plain Concepts
Visitors	170,000+ - Plain Concepts

“LEAP 2025 is a defining moment because when the Kingdom works, the region works and the whole world works. LEAP has evolved from a movement to a multiplier effect – but now is our defining moment.” - His Excellency Eng Abdullah Alswaha, Saudi Minister of Communications and Information Technology

The AI industry outlook for 2025 in Saudi Arabia is unmistakably upbeat but not uniform: independent reports paint a fast‑moving market with different measurements and horizons, which is exactly what retailers should expect when planning investments.

Grand View Research projects a hefty market - about USD 6.76 billion in 2024 with a blistering 43.1% CAGR for 2025–2030, while IMARC reports a more conservative USD 1.073 billion in 2024 and a 15.8% CAGR through 2033; specialist studies on generative AI put that segment on a steep climb too (Polaris forecasts KSA GenAI at roughly USD 392.1M in 2025 and a 32.1% CAGR to 2034).

Infrastructure and data‑centre builds are accelerating in parallel - one market analysis forecasts AI data‑centre infrastructure growing at about a 30.5% CAGR to reach roughly US$3.08 billion by 2030 - meaning cloud, edge and local hosting options will become easier for stores to tap.

For retailers the bottom line is practical: whether using modest pilots or platform partnerships, the ecosystem is scaling quickly and offers multiple paths to deploy personalization, computer vision and inventory AI without waiting for a single “right” moment; choose use cases that return cash within months, and treat the rising infrastructure capacity as the safety net for future expansion (see the Grand View and Polaris market breakdowns for detail).

Metric	Value / Source
Saudi AI market (2024)	USD 6.76B - Grand View Research Saudi Arabia artificial intelligence market report
Saudi AI market (2024, alternate)	USD 1,073M - IMARC Group Saudi Arabia artificial intelligence market report
KSA Generative AI (2025)	USD 392.11M; CAGR 32.1% (2025–2034) - Polaris Market Research KSA Generative AI market report
AI data‑centre infrastructure forecast	US$3.08B by 2030; CAGR ~30.5% - Saudi Market Research Consulting

Yes - LEAP 2025 was a major signal that Saudi Arabia is actively investing in AI: the event opened with record‑breaking new technology announcements totalling about US$14.9 billion, part of a broader LEAP track record that has delivered over US$27.5 billion in public and private investment in the past three years (LEAP 2025 $14.9 billion technology investment announcements - Informa, LEAP $27.5 billion multi-year investment track record - One Giant Leap / Inc. Arabia).

Those commitments range from a Groq–Aramco $1.5bn partnership to expand AI inference infrastructure, to a $2bn Lenovo–ALAT advanced manufacturing and robotics pledge, and Google's plans for a global AI hub - concrete moves that expand local cloud, compute and talent capacity.

Co‑located DeepFest amplified the practical side of that investment with humanoid robotics, automated baristas and immersive AI demos, giving retailers a vivid preview of how on‑floor automation, computer vision and personalized experiences could scale fast in Saudi stores; think of proof‑of‑concept robots and live demos turning abstract budgets into shop‑floor pilots within months.

For retailers weighing AI, LEAP 2025 didn't just announce capital - it mapped partnerships, platforms and pilotable tech that make real deployments more accessible this year.

Metric	Value (source)
New tech investment announcements (LEAP 2025)	US$14.9B - Informa
LEAP investment total (past 3 years)	Over US$27.5B - One Giant Leap / Inc. Arabia
Notable commitments	Groq+Aramco $1.5B; Lenovo+ALAT $2B; Google global AI hub - Informa
Exhibitors / startups / speakers	1,800+ brands; 680+ startups; 1,000+ speakers - Inc. Arabia / One Giant Leap

“LEAP has made an outstanding contribution to the realization of Saudi Arabia's Vision 2030 goals, and it has rightly positioned the country as a global technology hub.” - HE Eng. Abdullah Alswaha, Saudi Minister of Communications and Information Technology

Saudi Arabia's AI program today blends high‑level policy with practical build‑out: the Riyadh Declaration - adopted as part of IGF Riyadh - frames AI as

“inclusive, innovative and impactful,”

pushing digital accessibility, literacy, environmental protection, public‑health benefits and economic inclusion across Vision 2030 agendas (Riyadh Declaration on Inclusive and Innovative AI - WAM); alongside that ethics framework sits a bold national strategy that embeds AI into cloud/HPC, data governance and priority sectors while creating industrial testbeds (notably NEOM) and fast‑track talent programmes so AI moves from pilots to operational gains - think smart infrastructure and logistics proof‑of‑concepts that scale quickly (Analysis of Saudi Arabia AI Strategy 2030 - Beam.ai).

The result is a clear government signal: govern and standardize AI at the top while building the compute, testbeds and skills at ground level so retailers and other businesses can deploy responsible, usable AI rather than chasing a single perfect model.

Program element	Detail / source
Riyadh Declaration	Inclusive, innovative, impactful AI; boosts digital access, literacy, SDGs - WAM / IGF
Adoption date	16 Dec 2024 - digitalpolicyalert / IGF timeline
National AI strategy focus	Embed AI in cloud/HPC, data governance, priority sectors - Beam.ai analysis
Industrial testbeds	NEOM and Vision 2030 projects used as operational testbeds - Beam.ai

Top AI use cases for Saudi retail cluster around three practical, revenue-first plays: hyper‑personalization, dynamic pricing and smarter logistics powered by computer vision and predictive analytics.

Personalization - driven by LLMs and recommendation engines - can lift repeat business (Publicis Sapient notes 56% of online shoppers are more likely to return after personalized recommendations), but it depends on cleaning customer data and running focused micro‑experiments rather than chasing blanket solutions (Publicis Sapient generative AI retail use cases).

Dynamic pricing and electronic shelf labels (ESLs) are already practical for convenience and grocery formats: machine‑learning price rules keep offers competitive and can auto‑discount items nearing expiry to cut waste and preserve margins.

Logistics and store operations benefit from in‑store computer vision for cashierless checkout, heatmaps and inventory monitoring - small sensors and cameras that reveal layout bottlenecks and free up staff for customer care (see the Nucamp AI Essentials for Work syllabus on in‑store computer vision use cases).

With Saudi retail AI set to grow rapidly, pilots that pair quick conversion metrics with clear data fixes let stores move from experiments to profitable scale without waiting for perfect infrastructure (Grand View Research Saudi Arabia retail AI market forecast).

Metric	Value / Source
Likelihood to return with personalization	56% - Publicis Sapient
Retailers using AI weekly / ready to scale	45% use weekly; 11% ready to scale - Amperity
Projected Saudi retail AI revenue (2030)	US$527.3M - Grand View Research

“If retailers aren't doing micro-experiments with generative AI, they will be left behind.” - Rakesh Ravuri, CTO at Publicis Sapient

Begin with a quick readiness check: use the National Artificial Intelligence Index (NAII) and government adoption tools to benchmark where a store stands on data, cloud access and governance so pilots match institutional maturity rather than wishful thinking (SDAIA National Artificial Intelligence Index (NAII) and AI Adoption Framework, Saudi Digital Government adoption readiness guidance 2025).

Next, prioritise two to three high‑ROI use cases - think personalization, dynamic pricing or in‑store computer vision - and design micro‑experiments that return cash within months rather than years (discovery and use‑case scouting guidance is outlined in local implementation roadmaps) - this keeps investment modest and learnings fast (Outter AI implementation roadmap for Saudi Arabia).

Clean and secure the data pipeline and validate infrastructure (edge, cloud or local hosting) before model trials; apply SDAIA's ethics and generative‑AI guidelines to embed governance from day one.

Run short pilots, measure conversion, waste reduction and throughput, then scale winners while upskilling staff with fast micro‑credentials (4–24 weeks) for POS, data basics and robotics so the people side isn't an afterthought.

The practical payoff: rapid pilots plus disciplined measurement turn abstract strategy into repeatable store playbooks that fit Vision 2030's AI goals.

Step	Action / Source
Assess readiness	Use NAII benchmarks and government adoption tools - SDAIA / DGA
Prioritise use cases	Select high‑ROI pilots (personalization, pricing, vision) - Outter roadmap
Prepare data & infra	Clean data, validate cloud/edge options and apply AI Adoption Framework - SDAIA / ucontent guidance
Train & scale	Deploy 4–24 week micro‑credentials for rapid reskilling; run micro‑experiments then scale winners - Nucamp micro‑credentials

For retailers building practical AI stacks in Saudi Arabia, focus on modular, proven platforms plus local partners: Sabre's SabreMosaic™ - touted for Riyadh Air's next‑gen offer and continuous‑pricing rollout and built on Google Cloud with generative AI - shows how offer‑level personalization and dynamic bundling can be productionised in a national launch (SabreMosaic offer and pricing announcement (Sabre)); for planning, replenishment and end‑to‑end retail forecasts, the o9 Digital Brain offers AI‑driven demand, allocation and inventory modules that map to grocery and convenience use cases (o9 Digital Brain retail planning platform (o9 Solutions)); and for local scale and physical retail partnerships, Saudi Aramco's RetailCo and its JV moves into fuel retailing signal a major domestic operator that will modernise forecourt retail and non‑fuel services across the Kingdom (Saudi Aramco RetailCo retail network announcement).

Complement these with targeted store tools - in‑store computer vision for heatmaps and cashierless flows and short micro‑credentials for staff - to turn platform capability into measurable lifts at checkout and back‑room efficiency (in‑store computer vision use cases for retail AI); the practical result is a stack that pairs enterprise planning, continuous pricing and local retail scale so pilots can pay for themselves within months rather than years.

Vendor / Player	Offering	Source
Sabre (SabreMosaic™)	Offer & continuous pricing, generative AI on Google Cloud for personalized offers	SabreMosaic offer and pricing announcement (Sabre)
o9 Solutions	AI‑powered enterprise planning: demand, inventory, assortment & retail planning	o9 Digital Brain retail planning platform (o9 Solutions)
Saudi Aramco / RetailCo	Domestic fuel retail network and retail operator partnerships for forecourt & non‑fuel services	Saudi Aramco RetailCo retail network announcement

“Partnering with Sabre has been instrumental in bringing our vision to life… Sabre's intelligent solutions act as the catalyst for our offer and order platform, and we are excited to continue working together to achieve our ambitious goals.” - Vincent Coste, Chief Commercial Officer, Riyadh Air

Saudi Arabia is shaping a human‑centric AI ecosystem that pairs high ambition with practical guardrails: the Riyadh Declaration positions AI as

inclusive, innovative and impactful,

pushing digital access, literacy and sustainability across Vision 2030 priorities (MCIT announcement: Riyadh Declaration on inclusive AI), while the Saudi Data & AI Authority (SDAIA) has published ethics principles (fairness, accountability, transparency, safety and sustainability), generative‑AI guidelines for government entities, and a playbook for risk‑based deployment.

Complementing privacy rules under the Personal Data Protection Law (PDPL, enforced Sept 2023), regulators are using sandboxes and sectoral guidance from the DGA and CST so innovation can proceed inside clear boundaries.

Practical proof‑points in the rules include mandatory risk assessments, audit trails and even measures to counter deepfakes (watermarking and output verification) - picture AI outputs stamped with verifiable seals so customers and staff can trust what they see.

Saudi authorities have also signalled international alignment: SDAIA's adoption of ISO 42001 in 2024 gives organisations a ready governance standard, and a broader

Global AI Hub

law is expected soon, so retailers should prioritise PDPL compliance, embed SDAIA ethics and design pilots that are auditable, explainable and people‑centred (Guide to AI governance in Saudi Arabia - Modulos.ai).

Policy element	Detail / source
Riyadh Declaration	Inclusive, innovative, impactful AI; boosts digital access & literacy - MCIT
SDAIA ethics principles	Fairness, accountability, transparency, safety, sustainability - Modulos.ai
Personal Data Protection Law (PDPL)	Enforced Sept 2023; governs automated processing and profiling - Modulos.ai
Generative AI Guidelines (2024)	Government guidance on safe GenAI use - Modulos.ai
ISO 42001 adoption	SDAIA achieved ISO 42001 (July 2024), guiding AI management systems - Modulos.ai
Upcoming legislation	Draft Global AI Hub Law expected within next two years - Digital Nemko / Modulos.ai

Start small, move fast and make every pilot pay: Saudi retailers should begin with a quick readiness check, pick two high‑ROI pilots (think hyper‑personalization, dynamic pricing or in‑store computer vision), and run measured micro‑experiments that return cash within months rather than years; with roughly 4,549 shopping malls nationwide the upside for successful pilots is enormous (xMap analysis of Saudi Arabia retail landscape 2025).

Use advanced data‑capture and automation to ensure clean inputs (Honeywell's industry survey shows most retail leaders already have AI capabilities and are increasing investment), then lock in compliance and local hosting choices early to meet Saudi standards and accelerate procurement (Honeywell report on AI and data collection in retail transformation; regulatory checklists from local agencies are essential).

Pair pilots with rapid reskilling so staff run and trust the systems - short courses such as Nucamp's 15‑week AI Essentials for Work teach practical prompts, prompt‑engineering and on‑the‑job AI skills that turn pilots into repeatable playbooks (Nucamp AI Essentials for Work 15-week syllabus).

Picture a Riyadh aisle where smart shelves auto‑discount near‑expiry items and a chatbot drives a drip campaign that lifts repeat visits - small, measurable moves like that scale into tangible margin improvements across the Kingdom.

Metric / Action	Value / Source
Shopping malls in Saudi Arabia (Jan 2025)	≈4,549 - xMap analysis of Saudi Arabia retail landscape 2025
Retail executives with AI capabilities	85% have developed AI capabilities - Honeywell report on AI and data collection in retail transformation
Nucamp reskilling option	AI Essentials for Work - 15 weeks; early bird US$3,582 - Nucamp AI Essentials for Work syllabus and registration