Capgemini's Insights: The Future of AI in Shopping Trends

Capgemini's Insights: The Future of AI in Shopping Trends

Contact for inquiries:
Antara Nandy
Tel.: +91 9674515119
Email: antara.nandy@capgemini.com

71% of consumers want generative AI integrated into their shopping experiences

Generative AI, often referred to as Gen AI, is rapidly changing the way consumers shop. The Capgemini Research Institute recently highlighted that a remarkable 71% of shoppers are eager for this technology to enhance their purchasing processes. One of the primary driving forces behind this shift is the strong preference among younger consumers, particularly Gen Z and Millennials, for personalized digital experiences.

Shifts in Consumer Behavior

Over half of the surveyed consumers, approximately 58%, have moved away from traditional search engines, instead opting for Gen AI tools for product and service recommendations. This represents a significant increase from just 25% in the previous year. Such a transition showcases the rising trust and reliance on advanced technology to streamline shopping journeys.

Demand for Hyper-Personalization

There's a notable demand for hyper-personalized content among younger consumers. Around two-thirds of Gen Z and Millennials expect product suggestions to be tailored specifically to their preferences, driven by the capabilities of generative AI. This technology allows for more intuitive and cohesive shopping experiences, making it easier for brands to engage effectively with their audiences.

Ad Influence on Consumer Purchases

The report found that a significant 70% of consumers are more likely to notice ads on retailer websites and apps, compared to 63% on social media platforms. This indicates an emerging trend where consumers are shifting their attention towards retailer-controlled advertising, reflecting how online advertisements significantly influence purchasing decisions. Notably, within the last year, nearly one-third of online purchases have been driven by these online ads.

Transformative Technology in Retail

Retailers view generative AI not just as a tool, but as a transformative technology in the evolution of shopping. A substantial 70% of consumer products and retail companies recognize the potential of Gen AI in reshaping the retail landscape. However, despite increased investments in this technology, there remains a disconnect between consumer expectations and the current implementation of AI tools.

Consumer Satisfaction Metrics

Interestingly, consumer satisfaction with generative AI has seen a decline, dropping from 41% to 37% in one year. This highlights an urgent need for retailers to understand precisely how consumers wish to see these technologies integrated into their experiences.

Pace of Delivery Services

Furthermore, the demand for speedy delivery services is intensifying. A growing percentage of consumers are willing to pay for faster deliveries, with 70% expressing a readiness to incur additional costs for expedited service. This trend illustrates a significant consumer expectation for convenience in their shopping experiences, especially regarding delivery timeframes.

Expectations on Sustainability and Product Information

Sustainability remains an essential pillar of consumer decision-making. While a sizable 64% claim to support sustainable brands, fewer consumers are prepared to pay extra for these products. This year’s survey indicated a slight increase in those willing to pay between 1-5% more, but the number of consumers willing to pay over 5% has consistently declined over the last two years. Environmental initiatives like carbon labeling resonate well with this demographic, showcasing the importance of sustainability in shopping.

Information Requirement

Today’s shoppers are not only looking for sustainable practices but are also demanding detailed product information, particularly nutritional data. A striking 67% of consumers would consider switching products based on this transparency, underscoring the significance of informative labeling for driving purchase preferences.

Rise of AI Influencers

The usage of AI influencers is gaining traction, with a quarter of consumers placing trust in avatars created through artificial intelligence. This new wave of influencers is reshaping how products are discovered, marking a shift in reliance toward non-traditional recommendation sources. For Gen Zs, social media influencers play a crucial role in product discovery, with 70% indicating they learned about new items via these channels, a notable increase from the previous year.

Capgemini's Role in Transformation

Capgemini continues to lead the way as a global business partner, helping organizations navigate the dual transition to digital and sustainable operations. With their extensive resources and expertise in AI, cloud, and data, they remain at the forefront of helping brands unlock technology's full potential to meet evolving consumer demands.

Frequently Asked Questions

1. What percentage of consumers want generative AI in shopping?

According to the report, 71% of consumers desire generative AI integrated into their shopping experiences.

2. How have consumer preferences shifted towards AI tools?

Over 58% of consumers have replaced traditional search engines with Gen AI tools for product recommendations.

3. What are consumers willing to pay for faster delivery?

A staggering 70% of consumers are willing to pay more for quicker delivery times.

4. How important is sustainability in consumers' purchasing decisions?

Sustainability heavily influences buying decisions, with 64% of consumers choosing to buy from sustainable brands.

5. What role do AI influencers play in consumer decisions?

AI influencers have gained trust among consumers, with many making purchases influenced by their recommendations.

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