Fragmented data is stalling AI‑driven customer engagement ROI, UAE marketers warn.
Senior marketing executives from financial services, retail, hospitality, logistics and other sectors gathered in Dubai for a closed‑door executive roundtable hosted by MoEngage in partnership with Khaleej Times on 9 July 2026. The session examined why AI investments in customer engagement are not yet delivering consistent business returns, despite the technology's growing prominence across the region.
Data integration remains the core obstacle
Participants agreed that the biggest obstacle is not the technology itself, but the quality and accessibility of organisational data. They highlighted that fragmented data infrastructure, disconnected systems and unrealistic implementation timelines are the most significant barriers. The discussion drew on MoEngage’s State of AI in Customer Engagement report for the Middle East. The research notes that 92 per cent of marketing and customer experience leaders in the region consider AI central to their growth strategy, yet only 31 per cent say it has become a genuine driver of business strategy. Furthermore, 35.5 per cent of these leaders remain in the early stages of adoption, relying on standalone AI tools for specific tasks such as content creation and audience segmentation.
About half of regional organisations cannot confidently measure whether their AI initiatives generate business value, while 53 per cent continue to deploy AI as isolated tools rather than integrating them into broader customer data ecosystems. Executives shared examples of personalisation efforts that rely on outdated behavioural data, delayed campaign execution and fragmented customer journeys. The consensus among the group was that without unified, real‑time customer data, even advanced AI models struggle to deliver meaningful business outcomes.
Executive expectations clash with operational reality
Boards are increasingly expecting rapid returns from AI spend, while organisations still require significant time to integrate enterprise data systems and set up reliable measurement frameworks. Several leaders described a “pilot paralysis” effect, where organisations hesitate to scale AI programmes until measurable success is proven, but cannot produce that evidence without broader deployment. This gap between executive expectations and operational realities creates a cycle that stalls progress.
The research also revealed that 83 per cent of regional brands still lack a unified AI layer across web, mobile and email channels, leading to fragmented customer experiences. Participants noted that traditional segmentation models continue to group customers into broad cohorts, which limits the impact of AI‑driven personalisation. Without a unified approach, brands struggle to deliver the seamless experiences that modern customers expect.
Frequently asked questions
Why is AI customer engagement ROI low in UAE?
UAE marketers cite fragmented data, disconnected systems, and poor data integration as the main barriers to AI-driven marketing returns.
What percentage of UAE companies use AI for customer engagement?
35.5% of UAE marketing leaders rely on standalone AI tools for tasks like content creation and audience segmentation, according to MoEngage's report.
How does data fragmentation affect AI marketing in UAE?
Fragmented data infrastructure prevents AI models from delivering meaningful business outcomes, as executives reported outdated data and delayed campaigns.
What challenges do UAE marketers face with AI adoption?
Marketers struggle with disconnected systems, unrealistic timelines, and measuring AI's business value, with 53% using AI as isolated tools.
Is AI a priority for UAE businesses?
92% of UAE marketing leaders consider AI central to their growth strategy, though only 31% see it as a genuine business driver.
