What's Happening?
The Boston Consulting Group (BCG) has released a report indicating a significant increase in the use of generative AI (GenAI) tools by consumers during shopping, particularly around year-end sales events.
The report, based on a survey of over 10,000 consumers across 10 countries, reveals that 48% of consumers have used or plan to use GenAI tools like ChatGPT and Google AI for shopping, marking a nine percentage point increase from 2024. These tools assist consumers in making informed purchasing decisions by comparing products, finding deals, and providing technical information. BCG emphasizes the need for retailers to adapt by ensuring their product data is structured and machine-readable to appear in AI-driven search results.
Why It's Important?
The growing reliance on GenAI tools for shopping decisions represents a shift in consumer behavior that retailers must address to remain competitive. As AI becomes a key influence in the customer journey, retailers that fail to integrate AI into their omnichannel strategies risk losing visibility and market share. The report suggests that retailers should focus on enhancing their digital presence and leveraging AI to personalize customer interactions. This shift could lead to increased competition among retailers to optimize their data for AI platforms, potentially impacting pricing strategies and customer loyalty programs.
What's Next?
Retailers are encouraged to develop strategies that incorporate GenAI into their operations, including optimizing product data for AI-driven platforms and enhancing customer engagement through personalized offers. The report also highlights the potential for AI to transform shopping from an active search-driven activity to a more passive, AI-managed process. As AI adoption continues to grow, retailers may need to invest in developing their own AI agents to maintain direct customer relationships and reduce reliance on third-party platforms.
