With rapidly increasing use and adoption of artificial intelligence (AI) in their day-to-day lives, UK shoppers are increasingly expecting retailers to leverage AI to improve their buying journeys, the latest research from retail technology partner Intellias reveals.
Original research of over 1,000 UK shoppers by Intellias revealed that almost half (45 per cent) of UK consumers already use Generative AI (GenAI) tools, such as ChatGTP, in their day-to-day lives, rising to 79 per cent of Gen Z. And this widespread and fast-growing adoption of GenAI is prompting consumers to recognise where they encounter AI within their buying journeys – with 42 per cent of consumers are currently aware of retailers using AI in shopping experiences – and where they expect retailers to leverage AI capabilities to improve customer experiences.
With ongoing cost-of-living pressures continuing to encourage pricing- and promotions-sensitive shopping behaviour, AI applications in pricing and promotions topped where UK consumers felt AI added the most value in their online buying journeys.
Over a quarter (28 per cent) of shoppers said AI-powered automated pricing and real-time promotions would enhance their customer experience, followed by AI use within loyalty schemes to deliver real-time personalised offers and rewards for 18 per cent of those polled.
While 14 per cent of UK consumers said AI-powered chatbots added value to their buying journeys, 25 per cent said AI chatbots proved the most disruptive AI application in their shopping experiences, while a further 25 per cent said those automated chat functions were among the most ‘clunky’ elements of AI they experienced when purchasing items.
With the speed at which GenAI has been adopted by retailers and consumers in 2023, perhaps it is inevitable that the pace has led to some wariness among shoppers, with 43 per cent of those polled saying that they are mistrustful of brands and retailers using AI in their shopping experiences. However, 61 per cent said they didn’t mind retailers using AI in their buying journeys so long as they were transparent about it, rising to 66 per cent of Gen Z, and a further 52 per cent felt that, as long as they had a good experience with a retailer or brand, they didn’t mind if it involved AI or not.
Alexander Goncharuk, VP of Retail at Intellias, commented: “There’s little doubt that the hype curve surrounding GenAI will continue to accelerate as we look ahead to 2024. And this will be driven both by the consumer, who will become even more used to AI interfaces in their day-to-day lives, and by the retailers innovating and exploring different use cases that drive efficiencies and enhance customer experience across the value chain.”
“Looking ahead, the key to delivering AI-powered value to the shopper will rely on transparency of use, and seamless and intuitive integration as part of the omnichannel shopping experience, as well as building out robust and secure compliance procedures in the back-end,” Goncharuk concluded.
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