What's Happening?
Boston Consulting Group (BCG) has released a report indicating a significant increase in the use of generative artificial intelligence (GenAI) tools by consumers during holiday shopping. The report, based
on a survey of over 10,000 consumers across ten countries, reveals that 48% of shoppers are using or planning to use GenAI tools like ChatGPT and Google AI to assist in making purchasing decisions during year-end sales events. This marks a nine percentage point increase from the previous year. GenAI tools are being utilized to compare products, find the best deals, and access technical product information, thereby influencing consumer choices at critical decision points.
Why It's Important?
The growing reliance on GenAI tools by consumers represents a shift in shopping behavior, with implications for retailers who must adapt to remain competitive. Retailers are encouraged to ensure their product data is structured and machine-readable to appear in AI-driven search results. This shift necessitates a reevaluation of traditional marketing strategies, as visibility in AI-generated answers becomes crucial. The trend also highlights the need for retailers to integrate GenAI into their omnichannel strategies, potentially increasing reliance on loyalty programs and personalized content to maintain customer engagement.
What's Next?
Retailers may need to develop brand-owned AI agents and optimize their presence across third-party AI platforms to maintain direct consumer relationships. As GenAI tools become more mainstream, retailers face the challenge of adapting to a new shopping paradigm where AI agents manage discovery, comparison, and purchasing on behalf of users. This evolution could lead to a decrease in direct consumer contact unless retailers integrate their data into AI ecosystems. The shift towards agentic AI is expected to transform shopping from an active search-driven activity to a delegated process, posing risks and opportunities for retailers.
Beyond the Headlines
The adoption of GenAI tools is expanding across generations, with notable increases among Gen X and baby boomers. This suggests a broader acceptance of AI as a shopping companion, potentially leading to the rise of agentic AI, where AI agents handle shopping tasks autonomously. This could further alter consumer behavior and shopping dynamics, emphasizing the importance of trust, simplicity, and reliability in AI tools. Retailers must focus on creating inclusive interactions that combine personalization with clarity and control to cater to older consumers.
