Consumers are no longer shopping via search engines or retailer websites, but increasingly through conversational AI systems that filter products and recommend purchases instantly.
Research fromMcKinsey & Companyshows that 38% of consumers in France, Germany, and the UK are already using AI tools like ChatGPT to inform their shopping decisions.
Unlike traditional e-commerce, which requires users to browse and filter manually, AI systems can process vast product catalogues in seconds and deliver tailored recommendations.
By compressing a multi-step shopping journey into a single interaction, AI has the potential to fundamentally alter how consumers engage with brands.
According toMcKinsey's ConsumerWiseresearch, 44% of US consumers who use AI search say it is now their preferred source of information, overtaking traditional search engines. This reflects a wider shift in how consumers gather information and make decisions, including in e-commerce, where the most common use of AI is comparing different products.
The trend is particularly pronounced among younger shoppers.Gen Z and millennialsare using AI not just for discretionary purchases such as fashion or fitness products, but also for everyday essentials including groceries.
As AI intermediates more of the purchasing journey,Deloittewarns that traditional brand loyalty could weaken. Instead of consumers actively choosing between brands, algorithms may increasingly prioritise products based on price or user-specific preferences.
Retail executives are already preparing for the consequences. More than 80% of retail executives surveyed by Deloitte expect generative AI to erode brand loyalty within the next two years.
Research suggests that AI shopping assistants do not only assist consumers but actively influence preferences and overall spend.
The commercial implications of AI-driven shopping are substantial.Retail Economicsestimate that UK retailers lose an £34.4 billion annually as shoppers add items to their online baskets but leave before completing checkout. However, industry research analysed bySavillsfound that AI chat-based exchanges can significantly increase the likelihood that a shopper goes on to buy a product.
Source: International Business Times UK
