A growing reliance on artificial intelligence (AI) for shopping advice among younger consumers marks a notable generational shift, according to a recent Mastercard report. The survey revealed that 27% of teenagers are open to utilising AI-powered shopping assistants to receive product suggestions and make purchases based on their preferences. In contrast, only 16% of parents express the same inclination.
Teenagers Prefer AI Over Human Guidance
The survey, which included responses from 26,000 parents and teens, highlighted that teenagers increasingly trust AI over human recommendations in their purchasing decisions. Specifically, 31% of the teenage respondents indicated they trust AI-generated product suggestions over advice from friends. Similarly, 23% favoured AI recommendations over their parents’ guidance. Conversely, while two-thirds of parents believe that AI shopping will define their children’s generation, a meagre 5% expect the same shift for themselves.
AI’s Growing Influence in the Shopping Experience
According to Mastercard’s findings, AI is playing a crucial role in shaping the contemporary consumer landscape. Forty-nine percent of parents surveyed report using AI to research products monthly, while the figure rises to 62% among teenagers. Brice van de Walle, Mastercard’s executive vice president of core payments Europe, noted that AI’s role is expanding from aiding purchasing decisions to executing the purchases themselves.
Supporting research by RTB House found that AI platforms often introduce consumers to brands that were previously unfamiliar to them. However, for about 40% of shoppers, the range of options provided by AI also prolongs the decision-making process.
Retailers Embrace AI to Enhance Customer Engagement
As the reliance on AI grows, retailers are incorporating advanced AI features to assist consumers effectively. The Home Depot recently integrated local store information into its Magic Apron AI assistant, while Williams-Sonoma leverages AI for personalised product discovery and improved checkout experiences. Target, on its part, introduced the Review Insights and Photo Search tools earlier this year to streamline the shopping process by allowing customers to utilise product reviews and photos in their searches.
Retailers are increasingly investing in AI technology, with many seeing substantial financial returns from these investments. A KPMG survey of 250 retail executives showed that more than half dedicate $50 million or more annually to digital technology. However, nearly half of these retailers also report that technical debt poses a barrier to adopting additional technological advancements.
Reporting based on coverage first published by retaildive.com.