AI agents reshape UAE retail operations amid governance concerns

DUBAI, UAE (MNTV) — Retailers across the United Arab Emirates are increasingly deploying artificial intelligence (AI) agents to automate pricing, inventory management and merchandising as the sector enters a new phase of digital transformation, according to industry experts.

As e-commerce continues to expand and retail operations become more complex, businesses are shifting from using AI solely for data analysis to adopting agentic AI systems capable of making recommendations and carrying out predefined operational tasks with limited human intervention.

According to Computers Weekly, Sulaiman Yusuf, Middle East and Africa regional vice president at UiPath, said the technology enables AI to move beyond generating insights by analyzing information from multiple business systems and executing decisions within established governance frameworks. 

He noted that many business processes still depend on employees manually gathering information from different platforms before action can be taken.

Industry specialists say the effectiveness of AI agents depends largely on integrating enterprise data rather than collecting additional information. 

Many retailers continue to operate disconnected merchandising, enterprise resource planning, warehouse management and e-commerce systems, limiting their ability to respond quickly to changing market conditions.

Retailers are also exploring AI-driven pricing strategies that continuously evaluate demand, competitor activity, inventory levels and profitability before recommending or implementing price adjustments. 

Similar technology is being used to optimize promotional campaigns, inventory replenishment and product distribution across multiple store locations.

The technology is also expanding into manufacturing, where AI agents are being used to improve procurement decisions, manage supply chains and generate commercial pricing recommendations based on real-time production costs and market conditions.

Despite the growing adoption, experts warned that governance remains a critical challenge. Yusuf said the rise of “shadow AI”—unauthorized AI systems operating outside IT oversight—could expose organizations to operational, security and compliance risks if companies fail to control system access and monitor AI decision-making.

He emphasized that organizations should establish clear governance policies, including restricted system access, approval mechanisms and comprehensive audit trails, to ensure AI systems operate transparently and comply with regulatory requirements. 

According to Yusuf, businesses that combine trusted data, integrated digital infrastructure and strong governance frameworks will be best positioned to scale AI safely and gain a competitive advantage.