What shoppers really think of artificial intelligence in retail

By this point, everyone who shops online has probably interacted with AI – even if they didn’t know it at the time. Retailers have been using some form of the technology for the best part of half a decade. 

Back in June 2018, Specsavers released its Frame Styler app in stores, an AI-powered tool that allows users to try on glasses virtually (which came into its own existence during the pandemic, when it was available on home tablets as physical stores were closed).

Shoppers buying from Ocado or Boots might well have had their orders picked and packed, at least in part, by robots that use AI to learn how best to manipulate items without damaging them.

And many of us will have asked questions to a chatbot, which uses big data at the back end to match answers with questions, no matter how they are worded (with varying degrees of success).

While the technology has been around in some form for a number of years, 2024 has seen a real leap forward in AI’s capabilities. Where do customers most want it to be used, and do they really trust it?

Where best to use AI

In terms of AI benefitting their shopping experience, the factors that most appeal to the consumers surveyed are convenience (27%), cybersecurity protection (25%), and customer service (16%), research published in The Fastest Way to Lose Consumers reveals.

Several of the online retailers we talked to are using AI behind the scenes, in ways customers might never notice, to make the shopping experience smoother and more efficient. Tesco, for example, uses AI to analyse market data, allowing it to price products more smartly and offer lower prices where possible.

When it comes to items that are reduced in price, the grocer uses data science to work out exactly what in-store reductions should be, which might depend on location, the product itself and even the time of day.

Consumers are least interested in the benefit of creative expression and entertainment, such as shopping and socialising in the metaverse, with just 5% citing this as an attractive prospect.

Despite the lack of interest, some retailers are making in-roads in this area. In June, Ikea launched its virtual UK store on Roblox, supported by 10 real-life workers paid in the metaverse to help customers choose furniture and better engage with the brand.

A matter of trust

Positively, despite some wariness and scepticism, a significant number of UK shoppers feel that AI use adds a level of kudos to a retailer, which might make them more willing to engage with it.

A fifth of those aged 25 to 34, and 10% aged 18 to 24, say they have been more likely to shop with a retailer because of its use of AI. Overall, just 7% say it influences them positively.

Conversely, 13% of the total surveyed say they have been put off by retailers using AI and had in the past year been less likely to shop with a retailer because they know it is doing so.

Therefore, retailers and brands that want to keep shoppers on their side need to communicate carefully and prove to their customers that they can get the details of this technology’s implementation right.

Zeta has created AI agents: specialised digital assistants to help you with specific tasks. For example, marketers can use a customer segmentation agent for analytics. This allows retailers to become experts on making customers feel known, without necessarily knowing AI made it happen.