Generative artificial intelligence (AI) and social media are rapidly reshaping how consumers make purchasing decisions, according to a recent survey by Capgemini. The study of 12,000 global shoppers found that consumers are increasingly turning to these tools throughout their shopping journey, from initial product discovery to final purchase.
Generative AI as a Search Tool
Nearly three in five consumers are now utilizing generative AI tools instead of traditional search engines, and over two-thirds want these technologies to aggregate search results from online search engines, social media platforms, and retailer websites. This trend is especially pronounced among younger demographics. Roughly two-thirds of millennials and Gen Z, and a significant portion of Gen X, have adopted generative AI for product recommendations. Interestingly, the survey also found that 44% of baby boomers are using generative AI in their shopping experiences.
The Rise of Social Commerce
Social media is becoming a primary resource for consumers across the entire shopping experience. Almost one-third of shoppers used social media to buy products and discover new brands last year, which is up from one-quarter in 2023, and the numbers are even higher among Gen Z shoppers. “Social commerce is the retailer’s route to Gen Z,” Capgemini noted, adding that over half of Gen Z shoppers have made purchases directly through a social media platform. Consumers also increasingly depend on social media for product information, reviews, and interacting with retailers for customer service; two in five shoppers are using social media for customer service.
Additional research underscores the impact of social media on purchase decisions, especially for Gen Z. A survey by Walmart and Morning Consult revealed that over half of Gen Z have purchased an item while browsing social media. The ICSC found that 85% of Gen Z consumers report that social media impacts their purchase decisions, with TikTok and Instagram being the most influential platforms.
Personalization and the Future of Shopping
Generative AI’s impact extends across all generations, with nearly three in five respondents to an Adobe survey reporting an improved online shopping experience thanks to these tools. Moreover, two-thirds of the survey respondents want brands to leverage their previous purchase data and customer information to personalize the shopping experience further. The findings suggest a future where AI and social platforms play an increasingly central role in consumer behavior.
