Generative artificial intelligence is beginning to play an increasingly important role in consumers' purchasing decisions.
In fact, 72% of shoppers expect their online shopping experience to evolve thanks to GenAI.
In addition, 37% want to be informed about products and features before they buy, and 31% expect a virtual assistant to help them choose an item.
This is according to the fourth annual retail industry report published by Coveo. This Canadian company has an AI-powered SaaS (Software as a Service) search engine.
For the report, which was produced in collaboration with Arlington Research, 4,000 shoppers were surveyed, 2,000 of whom were British and 2,000 American.
The report explores shoppers' preferences, expectations and frustrations at a time of significant change in the retail sector.
Key insights
The report also looks at other issues, such as concerns about data. Although shoppers' willingness to share personal data to gain access to offers is increasing, their concerns about its use are also growing.
54% said they would share information about themselves if it would improve their shopping experience. 65% said they would do so for brands they trust and/or if it would get them better deals (compared to 41% and 48% for the same question in the 2023 Coveo report)
However, the number of shoppers who are concerned about how online retailers use their data has also increased significantly: from 64% in 2023 to 71% in 2024.
The growing trend towards social commerce is also evident. Gen Z shoppers are discovering products on social media platforms such as TikTok, Instagram or YouTube. Nevertheless, only 14% of consumers stated that they had made a purchase via this channel.
In this respect, retailers' websites remain a key route to conversion. Around two-fifths (39%) say they always or often come across products that pique their interest when they are on social media. For Generation Z, this figure rises to half.
"With consumers spending key moments of their shopping journey online, brands need to offer physical and digital shopping experiences that complement each other," explains Lisa Grayston, General Manager of Commerce at Coveo.
"Furthermore, 9 out of 10 consumers expect their online shopping experience to match or exceed their in-store satisfaction. With the advent of GenAI, online shopping can move beyond mere transactions and become conversations and advice. It's important that retailers adapt to this change before they lose out to the competition," she advises.
