What shoppers really think about retail’s use of AI

Over a quarter of consumers (27%) would like retailers to use AI to make their shopping experiences more convenient, research published in The Fastest Way to Lose Consumers reveals.

The research surveyed 1,000 UK consumers in July 2024 and found a mismatch between knowledge of AI as a concept and clarity about its uses among shoppers. 

The vast majority (87%) say they know what AI is, but half are not sure if they have interacted with it in the past 12 months. 

There is a sizeable chunk of consumers, however, who both know what AI is and recognise using it, with 37% saying they are aware of using AI when making an online purchase with a retailer in the past year. 

AI scepticism and excitement 

The report, produced by Retail Week in association with Zeta, also highlights that there is work to be done for retailers to build consumer buy-in. The majority of consumers (59%) say they feel sceptical about AI being used by retailers and brands or are conflicted about its use.   

This statistic reflects a couple of things. Firstly, AI has been trialled and experimented with gradually – for example, with chatbots to answer questions – and is constantly improving, meaning that many shoppers’ first experience of the technology will have been clunky, potentially putting them off in the future. 

Secondly, the statistic tells us that a lot of the time retailers and brands do not flag their AI use, meaning users won’t know when a useful experience – for example, being recommended a product that exactly anticipates their needs – is happening because of AI. 

Only 8% of respondents say AI use by retailers and brands excites them (almost doubling to 14% for those aged 25 to 34 and 13% in the 35 to 44 group); 29% say they are neutral about its use. This leaves a lot of room for retailers to get better at both providing services and being clear to shoppers about the benefits of AI use. 

Where best to use AI 

As mentioned, in terms of AI benefitting their shopping experience, the factors that most appeal to the consumers surveyed are convenience (27%), cybersecurity protection (25%) and customer service (16%). 

Consumers are least interested in the benefit of creative expression and entertainment, such as shopping and socialising in the metaverse, with just 5% citing this as an attractive prospect. 

Despite the lack of interest, some retailers are making in-roads in this area. In June, Ikea launched its virtual UK store on Roblox, supported by 10 real-life workers paid in the metaverse to help customers choose furniture and better engage with the brand. 

AI can help brand reputation – if done correctly 

Positively, despite some wariness and scepticism, a significant number of UK shoppers feel that AI use adds a level of kudos to a retailer, which might make them more willing to engage with it. 

A fifth of those aged 25 to 34, and 10% aged 18 to 24, say they have been more likely to shop with a retailer because of its use of AI. Overall, just 7% say it influences them positively. 

Conversely, 13% of the total surveyed say they have been put off by retailers using AI and have in the past year been less likely to shop with a retailer because they know it is doing so. 

Therefore, retailers and brands that want to keep shoppers on their side need to communicate AI usage carefully and prove to their customers that they can get the details of the technology’s implementation right.