60% of Retail Consumers Seek AI Integration for Shopping Journey: IBM Report
Retail consumers said they would like to use AI applications as they shop, as per a global study from the IBM Institute for Business Value.
Near 60% of retail consumers said they desire for integrated AI applications as they shop and 4 in 5 consumers who haven’t used AI for shopping reported an interest in trying it — according to a global study from the IBM Institute for Business Value.
The report titled ‘Revolutionize retail with AI everywhere: Customers won’t wait ‘, sheds light on the widening gap between consumer expectations and the current state of retail affairs. As dissatisfaction with traditional shopping experiences looms large — technology, particularly AI, emerges as a potential catalyst for a retail revolution.
IBM asserts that a mere 9% of consumers find satisfaction in in-store experiences, while only 14% express contentment with online shopping – a call for retailers to reevaluate their strategies with evolving consumer demands.
Amidst this discontent, AI stands out as one of the primary solutions. Over half of the surveyed consumers expressed eagerness for AI enhancements, with virtual assistants and AI applications topping the list at 55% and 59%, respectively. These findings suggest an appetite for technology-driven solutions that can elevate the overall shopping experience.
Additionally, economic uncertainties, particularly the impact of inflation, cast a long shadow over consumer behavior. A notable 62% of respondents acknowledge that inflation has influenced how they shop, with price emerging as the top reason (62%) for consumers considering a switch between stores or brands.
The in-store experience, despite being preferred by 73% of consumers, falls short of expectations. Only 9% express satisfaction, revealing a discrepancy between preference and reality. Desired improvements include extensive product variety, better product information and faster checkout processes. These insights signal an urgent need for retailers to enhance in-store offerings to align with consumer expectations.
Consumer Preference for AI-Enhanced Shopping
According to the IBM study, consumers vocal about their desire for change expressed a strong interest in using AI technology to enhance their shopping experiences.
While 59% express a willingness to utilize AI applications while shopping, personalization and targeted offerings also take center stage, with 52% expressing interest in receiving information, advertisements and offerings tailored to their specific interests.
However, there exists a mismatch between current offerings and consumer expectations.
Only about one-third of virtual assistant users report satisfaction, while nearly 20% express disappointment to the extent of avoiding such technologies altogether. This highlights the need for aligning technological advancements with genuine consumer needs and expectations.
In the face of these challenges and opportunities, the study serves as more than just a diagnostic tool – it’s a call to action. Retailers are urged to innovate and integrate advanced technologies, particularly AI, into both digital and physical shopping experiences. The study’s actionable strategies provide a roadmap for retailers looking to navigate this evolving landscape and meet the changing demands of today’s discerning consumers.
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.