ADNOC Distribution, the ADX-listed fuel and convenience retail company, is accelerating its digital transformation through the integration of artificial intelligence (AI) and advanced data analytics across all business segments as part of its 2024–2028 growth strategy.

The move followed parent ADNOC Group’s broader AI and Digital Technology (AIDT) strategy, launched in 2023 to make it the world’s most AI-enabled energy business.

“For a company like ADNOC Distribution, which processes around 250 million transactions annually, growth is about unlocking the value of data,” said Athmane Benzerroug, Chief Strategy, Transformation and Sustainability Officer.

“In a regulated market where fuel prices are standardised, our differentiation hinges on delivering hyper-personalised customer experiences,” he told Zawya Projects during an interview at ADIPEC 2025.

The company’s competitive edge is driven by a robust foundation of AI, digital technologies, and IT infrastructure, according to Benzerroug.

ADNOC Distribution’s four-year roadmap focuses on four pillars:

  • Driving growth using data-driven insights to boost revenue and improve decision-making
  • Enhancing operational efficiency through predictive analytics, cost optimisation, and resource management
  • Delivering exceptional customer experience via hyper-personalised offerings and seamless service delivery
  • Future-proofing the business with AI-driven energy efficiency, predictive maintenance, and water and waste minimisation initiatives.

Operations and retail efficiency

The company has launched over 20 AI initiatives, applying data analytics and machine learning to transform data into actionable insights.

The AI use cases include optimising inventory in fuel and convenience goods purchases by analysing and predicting consumer behavior, and enhancing operational efficiency by minimising fuel runouts and retail stock outs across its network of fuel station and stores. 

“We can predict fuel depletion at each station and schedule deliveries just in time,” explained Benzerroug. “This enables us to reduce delivery frequency – for example, from four times a week to three – without risking runouts.”

Moreover. advanced route optimisation tools are used to manage depot-to-fuel station deliveries and avoid construction zones and traffic delays.

Similar AI models are used to optimise retail merchandising and logistics for ADNOC Distribution’s convenience stores.

“We’ve segmented our network into clusters based on customer type and location, such as community neighborhoods, highways, and industrial areas,” said Benzerroug. “Each cluster has distinct consumer patterns; so, we customise our product offering accordingly, ensuring the right products are available at the right stations for the right customers.”

Building on the success of its ADNOC Rewards loyalty programme, which has surpassed 2.5 million members since its 2019 launch, ADNOC Distribution is leveraging AI to deliver hyper-personalised offers based on customer behaviour and preferences.

Benzerroug noted that understanding individual consumer behaviour and tailoring the right offer for each customer requires robust data collection and analytics, supported by AI models that continuously learn and adapt to changing consumption patterns.

He continued: “For example, if we observe a decline in a customer’s fuel spending, we can send targeted messages offering discounts, loyalty rewards, and other incentives to drive more engagement. When customers respond to highly personalised offers, it drives higher net profit, validated by increased engagement, satisfaction, footfall, frequency of visits, and spending,”

Under the 2024–2028 roadmap, ADNOC Distribution plans to invest $250–$300 million annually in capital expenditure, prioritising digital and AI initiatives. Key initiatives include seamless fueling via license plate recognition, in-car ordering through the ADNOC Distribution app, and the exploration of subscription-based services for car washes and other offerings.

Developing human capital

Benzerroug said ADNOC Distribution is building a digital future where AI complements rather than replaces human talent.

He elaborated: “AI is becoming indispensable, and it empowers both operational and strategic decision-makers to chart the right course, backed by data. We can correlate and justify our AI investments with improvements in efficiency, performance, sales, revenue, and other key metrics, all of which translate into greater value for our shareholders.

“That said, AI need not be exclusionary. We’re not investing in a future where AI replaces talent but one where it empowers people to perform even better. By automating routine processes, we’re creating opportunities for people to become significantly more efficient.”

Benzerroug added that ADNOC Distribution’s goal is to combine operational excellence with exceptional customer experience.

“By upskilling our workforce in AI, data analytics, and digital capabilities, we elevate both our operational excellence and the quality of service we offer our customers,” he concluded.

(Reporting by Dennis Daniel; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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