The Rise of Gen AI in Consumer Behavior
A recent study by Capgemini Research Institute has found that 58% of consumers are now using Gen AI tools instead of traditional search engines when searching for product and service recommendations. This represents a significant increase from 25% in 2023.
The research, detailed in the fourth edition of the annual consumer trends report ‘What Matters to Today’s Consumer,’ also discovered that two-thirds of Gen Z and millennials are seeking hyper-personalized content and product recommendations powered by Gen AI. The main drivers for consumers switching brands or retailers are poor customer experience and sustainability concerns.
Nearly half (46%) of consumers are enthusiastic about the impact of Gen AI on their online shopping experience, and three-quarters are open to Gen AI recommendations, marking an increase from 63% in 2023. The majority (seven in 10) of consumer products and retail companies view Gen AI as a transformative technology, indicating a significant shift in perspective from the previous year.
However, the current usage of Gen AI is not meeting consumer expectations. Satisfaction with the technology has decreased from 41% in 2023 to 37% in 2024. According to Lindsey Mazza, global retail lead at Capgemini, “Consumers today want personalized shopping experiences, enhanced by AI and generative AI. To remain competitive and build brand loyalty, retailers must adopt strategies that put the consumer at the center, leveraging AI to deliver seamless yet exceptional customer interactions.”
The study highlights the need for retailers to capitalize on social and digital advertising platforms to engage consumers early in the purchasing journey, as there is a clear shift towards social commerce. Retailers must be aware of the importance of fast and efficient deliveries, as well as the growing consciousness among consumers about the impact of their purchasing decisions.
