How AI is Shaping the Future of Retail: 5 Key Takeaways from Our Webinar
Artificial intelligence (AI) is revolutionizing the retail landscape by providing hyper-personalized recommendations and smarter service experiences. Our recent webinar, AI & the American Shopper, delved into the findings from a national study of over 3,000 consumers, offering insights into what this means for retailers.
Here are five key takeaways from the session and how your brand can turn these insights into action:
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Consumers Are Aware of AI but Don’t Always Seek It Out Our research revealed that while 91% of U.S. shoppers are aware of AI, less than half (41%) use it frequently. This gap presents an opportunity for retailers to focus on practical AI applications that solve real customer pain points, such as smarter search, real-time recommendations, and restock alerts.
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AI Can Enhance Discovery in a Cluttered Digital Environment Customers are overwhelmed by content and choices online. AI can help surface the right product, promotion, or price at the right moment. In fact, 46% of shoppers want AI to help them find the best deals, while 41% desire improved product reviews. Retailers can leverage AI-powered discovery tools like visual search or personalized offers to dramatically improve conversion and loyalty.
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Personalization Is Now an Expectation, Not a Perk Consumers expect brands to use their data responsibly to deliver tailored experiences. A significant 84% are open to AI improving personalization, whether through customized product suggestions, relevant rewards, or timely back-in-stock alerts. AI enables retailers to scale 1:1 personalization, turning transactional moments into relationship-building touchpoints.
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Customer Service Must Remain Human at Its Core While shoppers are open to AI-powered support tools, they don’t want to lose the option to speak with a real person. One in three consumers worry that AI could reduce human support. The key is to balance automation with empathy, using AI to reduce wait times and assist agents rather than replace them. Successful brands blend AI efficiency with human connection.
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Retailers Must Focus on Meaningful AI, Not Just Flashy Tech Across all generations, consumers agree that AI is exciting only if it adds real value. They’re looking for AI that feels personal, helpful, and trustworthy—not just performative. Retailers should ask themselves: is their AI solving a customer need or just checking a box? The difference shows.
Ready to rethink your AI strategy? The research makes clear that shoppers want AI experiences that feel intuitive, relevant, and human. Brands that embrace AI with purpose—not just novelty—will be best positioned to build deeper loyalty and long-term growth.
About Bread Financial®
Bread Financial is a tech-forward financial services company that powers personalized payment, lending, and savings solutions for leading brands and millions of U.S. consumers. Learn more at breadfinancial.com.
