A new global study from the IBM Institute for Business Value, IBM’s thought leadership think tank, saw consumers expressing interest in using artificial intelligence (AI) in their online shopping.
IBM Institute for Business Value’s consumer study, titled “Revolutionize retail with AI everywhere: Customers won’t wait,” revealed that over half of respondents expressed eagerness for AI-driven advancements such as virtual assistants (55%) and AI applications (59%) while they shop.
Conducted across 26 countries, the IBM Institute for Business Value’s research delved into consumers’ digital habits, their interactions with artificial intelligence (AI) and generative AI (GenAI), and their expectations from brands. The analysis, segmented by age group, income, and purchasing habits across product categories, provided valuable insights into consumer preferences.
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AI technology emerges as an indicator that the shopping experience can be improved, with 59% of consumers expressing interest in leveraging AI applications while shopping. Personalization and targeted offerings are particularly sought after, with 52% of consumers expressing a desire for tailored information and promotions. Still, there exists a notable gap between current AI offerings and shopper expectations, as evidenced by the dissatisfaction among users of virtual assistants.
Online shopping
However, the IBM study also uncovered a prevailing dissatisfaction with retail experiences. The study saw that only 9% of respondents expressed contentment with in-store experiences, while a mere 14% found solace in online shopping.
The study also indicates that economic strains, particularly inflation, are reshaping consumer behavior, with 62% citing price as a top reason for switching stores or brands.
Despite a prevailing preference for physical stores among 73% of respondents, satisfaction with the in-store experience remains low at 9%. Consumers voiced a desire for a broader product selection (37%), more comprehensive product information (26%), and expedited checkout processes (26%). Also, 65% of consumers augment their in-store experiences with mobile apps, underscoring a trend toward digitally integrated shopping environments.
Critiques of online retail are also pronounced, with two-thirds of consumers discovering new products online. However, dissatisfaction persists, primarily due to difficulties in finding desired products (36%), inadequate product information (33%), and cumbersome return processes (33%).
Economic forces loom large over consumer decisions, as evidenced by the desire for flexible payment options (55%) and installment payment plans (46%). As inflation and economic uncertainties persist, price sensitivity continues to drive consumer preferences, influencing store and brand loyalty.