Despite 2023 being hailed as the year of the Artificial Intelligence (AI) hype-curve, UK shoppers are clear that AI can never replace human interaction. Nearly three quarters (74 per cent) of consumers believe no matter how good AI becomes at improving customer experience (CX), there will always be a role for human interaction in retail, according to new research from the Retail Technology Show (RTS).
Original research of over 1,000 UK shoppers by RTS revealed that already a quarter (25 per cent) of UK consumers agree AI is improving their shopping CX. And, with consumer and business adoption of AI evolving at pace, a further 44 per cent of shoppers say they don’t mind if retailers use AI in their buying journeys, as long as the experience is positive.
However, there are still deep reservations around the impact of the technology on consumers and the retail industry overall. While the Business of Fashion and McKinsey State of Fashion survey of global fashion executives found the majority (73 per cent) of respondents said Gen AI will be an important priority for their businesses in 2024, there is work to do to allay consumer concerns with 69 per cent of respondents polled by RTS wanting retailers to do more to build trust when using AI in their shopping experiences.
Three quarters (74 per cent) of UK consumers say brands should be transparent when using AI in their buying journey, with a similar number (72 per cent) demanding retailers spell out their governance policies and procedures for AI use with customers. Two fifths (39 per cent) of shoppers are mistrustful of retailers’ and brands’ use of AI – increasing to 41 per cent of Gen Z, dispelling the idea that only older consumers are reluctant around this nascent technology.
Consumer concerns are more wide-ranging than just the potential personal impact of AI. Over half of respondents (53 per cent) say AI risks stifling creativity within the retail sector, while a further 70 per cent say AI will risk retail jobs within the industry which, according to Centre for Retail Research, already saw 120,000 jobs lost in 2023. Yet, despite these challenges, 73 per cent of UK shoppers polled by RTS also felt that despite the fast-paced adoption of AI, human roles will always be needed in retail.
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