A recent report by Capgemini shows that 71% of consumers now desire gen AI to be part of their shopping journey. This shift is mostly driven by gen z and millennials, who prioritise hyper-personalisation and better digital interactions. According to the report, technological innovation, evolving financial priorities, and heightened sustainability awareness reshape consumer behaviour.
“To remain competitive and build brand loyalty, retailers must adopt strategies that put the consumer at the center, leveraging AI to deliver seamless yet exceptional customer interactions. The clear shift towards social commerce is also significant. Retailers need to capitalize on their social and digital advertising platforms to engage consumers early in the purchasing journey,” said Lindsey Mazza, global retail lead at Capgemini.
Enthusiasm for gen AI in online shopping is growing, with 46% of consumers excited about its impact and 75% open to gen AI recommendations. As many as 58% of shoppers have replaced traditional search engines with gen AI tools for product and service recommendations. Moreover, 68% want gen AI to aggregate results from search engines, social media, and retailer websites to provide a unified shopping experience.
In addition, consumer products and retail companies see gen AI’s potential, with 70% considering it a game-changer—a substantial jump from the previous year. Despite rising investments, satisfaction with gen AI has dropped to 37% in 2024 from 41% in 2023.
Quick commerce gains traction
The need for rapid delivery is surging, with consumers increasingly willing to pay for faster service. Willingness to pay more for quick delivery jumped from 41% in 2023 to 70% in 2024. Consumers are now open to spending 9% of their order value for 2-hour or 10-minute delivery windows. Additionally, 65% of shoppers view 2-hour delivery as essential, particularly in regions like India, Germany, and France, though the US is trailing behind in this trend.
AI influencers and social media in retail
AI influencers are becoming a trusted source for 25% of consumers, influencing their purchase decisions. Social media platforms like Instagram and TikTok are transforming discovery, with over 50% of consumers finding new products via social media, a sharp rise from 32% in late 2022. Gen Z’s engagement with social media influencers surged from 45% in 2023 to 70% in 2024.
Impact of digital advertising
Ads on retailer websites and apps catch the attention of 67% of consumers, influencing almost a third of online purchases in the past year. In contrast, in-store ads fall short in personalisation, with 59% finding them too generic.