Generative AI (Gen AI) is enhancing consumer online shopping experiences by offering personalized recommendations, speedy services, convenient, and tailored to their priorities.
According to Capgemini Research Institute’s consumer trends report, 71% of consumers want Gen AI to be integrated into their online shopping experiences. The report shows that technological advancements, evolving financial priorities, and heightened sustainability awareness are pivotal in shaping consumer behavior.
Consumer enthusiasm for the influence of Gen AI in online shopping is evident, with 46% expressing positiveness about its effects—an increase from 63% in 2023 regarding the acceptance of Gen AI recommendations.
About 58% of consumers choose Gen AI solutions over traditional search engines for product and service recommendations. Furthermore, 68% of consumers prefer Gen AI to consolidate search results from various sources, including online search engines, social media, and retail websites, facilitating a comprehensive overview of purchase options.
7 in 10 consumer products and retail organizations see potential in Gen AI technology, a significant shift from last year.
Despite the growing investment in Gen AI, the report shows that actual usage levels declined short of expectations. A decline in consumer satisfaction with Gen AI solutions is notable, down to 37% in 2024 compared to 41% the previous year. This highlights the necessity for retailers to understand user preferences strategically.
“Consumers today want personalized shopping experiences enhanced by AI and generative AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact,” said Lindsey Mazza, Global Retail Lead at Capgemini.
The demand for quick commerce is rising. Many consumers are willing to pay extra for fast delivery services. The percentage of consumers favoring additional costs for speedy delivery services grows from 41% in 2023 to 70% in 2024. This indicates a strong consumer trend toward convenience.
Consumers are willing to allocate an average of 9% of the order value for a delivery time of just over 2 hours, with 65% identifying quick delivery options as critical when making purchasing decisions. This trend is most pronounced in markets like India, Germany, France, Sweden, Spain, and the Netherlands, while the US appears to lag in adopting such models.
Sustainability remains a pivotal factor in consumer purchasing decisions. While 64% actively buy from sustainable brands and 67% are inclined to switch retailers due to sustainability concerns, their willingness to pay a premium is declining.
The proportion of consumers willing to pay an additional 1-5% for sustainable products has increased slightly, from 30% to 38%. However, there has been a consistent decline in those willing to pay over 5%.
Initiatives such as carbon labeling and food waste reduction resonate strongly with consumers, in line with growing demands for greater transparency and detailed product information, particularly nutritional data—which 67% of consumers indicated could influence their product choices.
AI Influencers in Product Discovery: The use of AI influencers, such as avatars generated through AI technology, is on the rise, with one-fourth of consumers admitting to trusting their recommendations.
Social media influencers are also gaining traction, with approximately 70% of Gen Z respondents discovering new products through these channels in 2024, a major boost from 45% in 2023.
Impact of Online Advertising The report highlights that 67% of consumers notice advertising on retail websites and applications while searching for products, with nearly one-third of online purchases in the last year being influenced by these advertisements.
In-store advertisements are perceived to weaken in effectiveness, primarily due to dissatisfaction with content quality and placement. The report shows significant consumer disappointment, with 59% noting issues that can hinder potential purchases.
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