Greater consumer awareness of AI within retail isn’t translating into increased trust around the use of the technology, prompting shoppers to call for greater transparency and AI governance from retail businesses, the latest research by the Retail Technology Show (RTS) reveals.
As consumers become increasingly well versed at interacting with AI in their personal lives, with Deloitte estimating that over 18million people in the UK have now used GenAI technology, customers are becoming more cognisant of AI within their shopping journeys.
Original research of over 1,000 UK shoppers by RTS showed that 40 per cent are now aware of retailers using AI when shopping, a rise of +13 percentage points compared to last year. This increases to 54 per cent of Gen Z, rising sharply by +23 percentage points versus 2024, and 52 per cent of Millennials (up from 41 per cent last year) who are aware of retailers’ use of AI within their shopping experiences.
Yet, despite increasing levels of personal adoption and knowledge of retailers’ use of AI, this is not necessarily translating to greater levels of trust around the use of the technology, with shoppers becoming less trustful of AI compared to last year.
Now, almost half (48 per cent) remain mistrustful of brands’ use of AI – an increase of +9 percentage points year-on-year – and nearly three quarters (72 per cent) say they are concerned about the use of their data when retailers use AI, jumping +10 percentage points compared to 2024. Meanwhile, 73 per cent of consumers feel retailers must do more to build their trust about the use of AI within their shopping journeys, also up +4 per cent year-on-year, with lack of brand trust proving a conversion killer for one in 3 (28 per cent) of Gen Z shoppers, according to separate Wunderkind research.
And this lack of trust is prompting consumers to demand greater levels of transparency and governance when retailers deploy AI. Over eight in ten (84 per cent) want retailers to be transparent about using AI within their buying experiences, a rise of +9 percentage points compared to last year, while over three quarters (77 per cent) want retailers to spell out governance procedures around AI use, an increase of +6 per cent compared to 2024.
“Retailers will need to close the customer-AI trust gap if they are to truly accelerate the impact of the technology on their businesses,” Matt Bradely, event director at RTS commented. “Our senior retail audiences tell us, almost unanimously, that AI will be the top technology driving their growth in the year ahead. Yet, while the potential of the technology is palpable, retailers must take their customers on the journey with them, setting out clear and transparent guardrails for its use to build greater trust, while also delivering enhanced value and CX to the shopper.”
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