Survey Finds Consumers Increasingly Expect Generative AI Assistance in Shopping
The integration of generative artificial intelligence (GenAI) into retail is reshaping how consumers shop, according to the fifth annual Commerce Relevance Report by Coveo, a leading AI platform. The survey, which polled 4,000 consumers across the U.S. and U.K., reveals a significant shift in shopping behaviors and expectations, particularly among younger generations.
Consumer Expectations and Behavior
Shoppers are increasingly relying on GenAI to enhance their purchasing experiences, both online and in-store. A striking 62% of consumers say they are more likely to complete a purchase when guided by GenAI, a figure that jumps to 68% among millennials. This highlights the growing importance of AI-driven shopping assistance in converting browsers into buyers.
Online research remains a critical part of the shopping process, with 77% of consumers researching products online before making in-store purchases. This underscores the importance of a robust digital presence for retailers. However, frustration with poor search functionality persists, with 72% of shoppers abandoning sites when they can’t quickly find what they’re looking for. Over half (53%) turn to Google, while 36% switch to competitors.
Social Media’s Influence
Social media continues to play a dominant role in product discovery, with 73% of consumers finding products on platforms like Instagram and TikTok. However, only 37% of shoppers complete their purchases directly on these platforms. Younger generations, such as Gen Z (58%) and millennials (54%), are more comfortable shopping on social media, while older consumers prefer traditional e-commerce sites due to concerns about transparency and security.
Trust and Personalization
Consumers are willing to share personal data with trusted brands in exchange for better deals or more personalized experiences. Fifty-eight percent of shoppers are open to sharing their data, but transparency about how it is used is crucial for maintaining trust and driving engagement. This balance between personalization and privacy will be key for retailers looking to leverage GenAI effectively.
These findings suggest that GenAI is no longer a futuristic concept but a present-day reality in retail. From enhancing personalization to improving search experiences, GenAI is redefining how consumers shop. Retailers who embrace this technology while maintaining transparency and trust are well-positioned to thrive in a competitive marketplace.
Broader Trends in Consumer-GenAI Interaction
Personalized Experiences
Consumers are increasingly seeking personalized experiences facilitated by GenAI. AI tools are leveraging behavioral and transactional data to offer tailored product recommendations. Beyond traditional product suggestions, features like curated recommendations, personalized buyer’s guides, and innovative grocery tools that integrate recipes with in-stock ingredients are gaining popularity. These tools not only enhance the shopping experience but also create a more engaging and convenient journey for consumers.
Generational Differences
Generational divides in AI adoption are becoming more apparent. Younger generations, such as Gen Z and millennials, are quick to adopt AI-driven tools like ChatGPT for product recommendations and personalization. In contrast, older generations, while less likely to use GenAI, still acknowledge its potential. However, they remain hesitant due to satisfaction with traditional methods or concerns about data usage. This generational gap highlights the need for retailers to cater to diverse preferences while implementing AI solutions.
AI as a Discovery Tool
GenAI is revolutionizing how consumers discover products. Many shoppers now prefer tools that aggregate information from multiple channels—such as social media, retail websites, and online search engines—into a unified interface. Additionally, natural language capabilities and conversational AI are increasingly replacing traditional keyword-based search methods. This shift underscores the importance of creating seamless and intuitive discovery experiences for consumers.
E-commerce Enhancements
AI-driven technologies, such as chatbots, virtual assistants, and visual search, are gaining traction in the retail industry. These tools streamline navigation, enhance product discovery, and improve the overall retail experience. Virtual try-on technologies and fraud detection systems are also emerging as critical components in AI-enabled retail, further enhancing the shopping experience and building consumer confidence.
Challenges and Retail Implications
While GenAI adoption is growing, consumer awareness remains limited. Many shoppers are unaware that they are using AI even when interacting with AI-driven tools. This gap between adoption and awareness presents an opportunity for retailers to educate consumers about the benefits of GenAI while addressing concerns about transparency and trust.
Data and trust issues remain a significant challenge. Although consumers are increasingly open to sharing personal data, retailers must clearly communicate how this data will be used to build trust. Transparency is essential for maintaining customer loyalty and driving engagement in an AI-driven retail landscape.
The convergence of online and offline shopping experiences is another critical consideration for retailers. To stay competitive, businesses must integrate AI into both channels. GenAI’s ability to bridge these two realms is crucial for future success, as consumers increasingly expect seamless and interconnected shopping experiences.
Conclusion
The integration of generative AI (GenAI) into retail is revolutionizing the shopping experience, as highlighted in the Commerce Relevance Report by Coveo. Consumers are increasingly relying on AI-driven tools for personalized recommendations, streamlined search functionalities, and enhanced product discovery. With 62% of shoppers more likely to complete purchases guided by GenAI, and younger generations like millennials and Gen Z leading the adoption, the demand for AI-enhanced shopping experiences is growing rapidly.
Social media continues to play a pivotal role in product discovery, with 73% of consumers finding products on platforms like Instagram and TikTok. However, the gap between discovery and purchase on these platforms underscores the need for seamless integration of AI-driven tools. Trust and transparency remain critical, as 58% of consumers are willing to share personal data for better deals or personalized experiences, but only if they understand how their data is used.
As GenAI becomes a cornerstone of retail, retailers must address challenges such as data privacy, consumer education, and the convergence of online and offline shopping experiences. By leveraging GenAI to deliver personalized, intuitive, and transparent shopping experiences, businesses can build trust, drive engagement, and stay competitive in a rapidly evolving marketplace.
FAQ
What role does GenAI play in enhancing the shopping experience?
GenAI enhances the shopping experience by providing personalized recommendations, improving search functionality, and streamlining product discovery. It leverages behavioral and transactional data to offer tailored suggestions, making the shopping journey more convenient and engaging.
How do consumer expectations about GenAI in shopping vary across generations?
Younger generations, such as Gen Z and millennials, are quick to adopt AI-driven tools for shopping, with 68% of millennials more likely to complete purchases guided by GenAI. In contrast, older generations are less likely to use GenAI, often due to satisfaction with traditional methods or concerns about data usage.
How does social media influence product discovery and purchases?
Social media platforms like Instagram and TikTok are critical for product discovery, with 73% of consumers finding products on these platforms. However, only 37% of shoppers complete purchases directly on social media, with younger generations being more comfortable with social commerce than older consumers.
How can retailers build trust while using GenAI?
Retailers can build trust by maintaining transparency about how consumer data is collected and used. Clear communication about the benefits of GenAI and ensuring data privacy are essential for fostering trust and driving engagement.
What are the key challenges retailers face in adopting GenAI?
Key challenges include addressing consumer concerns about data privacy, educating shoppers about the benefits of GenAI, and integrating AI seamlessly into both online and offline shopping experiences. Balancing personalization with transparency is crucial for successful GenAI adoption.
