How AI Is Securing Its Place Along the Shopper Journey
Artificial intelligence's overall influence on shopping behaviors continues to expand, according to a new report from Acosta Group. And with a growing number of consumers using AI, brands and retailers will find their way into consumers' carts when they embrace how the technology can help lead to a purchase, according to the global collective of agencies.
The study compiled the responses of 1,271 U.S. shoppers in May to understand how generative AI is rapidly becoming part of the shopper journey. Findings showed that of those consumers who had used at least one retail channel in the three months prior to the study, 34% had reportedly used AI tools to shop.
As retailers and brands evaluate how to reshape their omnichannel commerce strategies, brands need to think about building new or elevated pathways so their products can be understood, recommended, compared and selected by any AI, said John Carroll, president of Connected Commerce for Acosta Group.
Half of the Gen Z and Millennial shoppers surveyed reported that AI had influenced their buying decisions, with its primary impact being to help them choose from the myriad product options.
Brand awareness and loyalty is important to these consumers, as evidenced by nearly half reporting they would select a known brand over an unfamiliar option. But 40% also reported choosing a new brand, giving CPG companies and retailers another nudge to add AI planning to their omnichannel strategies.
Carroll said brands should invest in four areas: retailer readiness; shopper understanding (to learn how consumers are sharing their needs, problems, occasions and desired outcomes); AI discoverability (to confirm that AI systems are consistently understanding and making product recommendations across platforms); and experimentation, because consumer shopping behavior will continue to evolve and stay relevant, making it necessary to test new concepts.
"Brands' and retailers' future growth will require knowing how products move through the AI commerce stack we've defined, evolving from discovery to decision to transaction," he said.
Nearly two-thirds of Gen Z and Millennials are now using AI, along with a growing percentage of Boomers. Nearly half (45%) reported consulting AI tools before they make certain purchasing decisions, with ChatGPT and Google Gemini being their preferred tools. Gemini is already routinely used by 25% of shoppers when searching online for products.
Shoppers reported saving money, product comparisons, saving time and product research as their primary reasons for using an AI tool, and more than half (55%) of Gen Zers who use AI tools are using it while in a store. AI usage remains highest for frequently purchased product categories, such as grocery and household items, and health and wellness products.
Sixty percent of respondents reported finding AI as trustworthy as other sources, with the caveat that their trust is damaged through incorrect or misleading data or when they have to be concerned that AI recommendations are biased by ads. Brands, therefore, need to ensure consistent marketing and messages across all platforms.
Transparency about how shopper data is stored and protected remains a concern for 48% of all shoppers. Brands and retailers can breathe a sigh of relief because younger shoppers are now more likely to share additional personal details. Similarly, the study showed that the increase in some segments' data sharing extends to their preferences, stores or brands with Gen AI.
Autonomous purchasing remains challenging, the report concluded. A mere 22% of those using Gen AI this year for shopping trust agents to make purchasing decisions for them. But that number increases to 35% for Millennials.
"Shoppers' trust in AI for product recommendations has been slow in evolving to allow agents to make purchases on their behalf, reflecting concerns for the privacy of their own lives and those of their families," said Kathy Risch, Acosta Group's senior vice president of shopper insights and thought leadership. "The more value shoppers experience with AI, the more likely they will share information, especially as brands and retailers provide transparency on how it will be protected. Companies that earn shopper trust now will be best positioned as AI becomes a more active purchase agent."
