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AI is changing how consumers shop, but bad recommendations could cost brands

Shopping apps are a popular way consumers buy products online
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New research finds consumers reject about six out of every ten products suggested by AI shopping assistants.

The problem could start before you ever click on a retailer’s website, with the study finding that businesses can lose a potential sale during the AI recommendation process itself.

A survey by Accenture of more than 25,000 consumers in 16 countries found that 72% expect AI to influence at least half of their insurance shopping within 12 months.

Researchers also found that AI makes brand loyalty more conditional. They found that 37% of loyal consumers would let an AI agent switch them to another brand for a better option. However, that loyalty breaks down fastest if that brand's own assistant gets details wrong.

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A survey from Synchrony and Oxford Economics found that while 56% would trust an assistant from a retailer or brand, three-quarters would either shop less or stop using the brand entirely if the assistant recommended a poor product.

Separate Adobe research found AI-driven traffic to retail websites jumped 62% year-over-year in July. It also found that 55% of consumers are turning to AI more, and 59% said they had used AI in the past week.

Both surveys indicate that artificial intelligence has become an increasingly important part of many consumers’ day-to-day shopping habits.