Paris – Generative AI will change the whole retail shopping environment. This is evidenced by a survey in which 71% of consumers say they want to use some means of generative AI in carrying out their shopping activities. Capgemini’s annual report, What Matters to Today’s Consumer, highlights key trends driving this transformation, including technological innovation, sustainability, and personalization.
The report further reveals that 58% of consumers use Gen AI tools for product recommendations instead of traditional search engines. This is a full 33% better than 25% in the previous year, 2023. Gen Z and Millennials demand hyper-personalized content, with 68% favoring Gen AI tools that aggregate search results from various platforms for streamlined shopping.
Despite all these high expectations, reports show that customers’ satisfaction with Gen AI reduced from 41% in 2023 to 37% in 2024.
“Consumers today want personalized shopping experiences, enhanced by AI and generative AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact,” said Lindsey Mazza, Global Retail Lead at Capgemini.
“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.”
The demand for speedier delivery is also growing, with 70% of the customers willing to spend more on quicker deliveries than 41% last year. Many of them are now ready to spend as much as 9% of the order value for delivery in two hours. This trend is dominating places like India, Germany, France, and some other European countries. The U.S. however is behind in the race.
Sustainability is vital as well, 64% of consumers go for greener brands, although it does not mean that they are now more willing to pay the premium for a sustainable product. Only 38% would pay 1-5% more, while those willing to pay higher premiums have gradually fallen.
AI influencers are gaining more traction, with 25% of consumers believing their recommendations. Platforms like Instagram and TikTok are also changing the retail world, with over half of the consumers discovering products through this medium. On the other hand, retailer website advertisements reach 67% of shoppers, even though they would have preferred smart in-store ads for personalization.
The present report from Capgemini showcases the insights from a survey of 12000 consumers across the globe on what Gen AI is doing to change shopping experiences and where things need to be improved to be in sync with consumer expectations. This provides the impetus for retailers to prepare for change rapidly while balancing the promise of technological innovation with personalization and sustainability.
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