Shoppers Still Skeptical of Benefits of AI
Artificial intelligence (AI) may be the new frontier for retail, but consumers are still skeptical of its applications and benefits.
Shoppers across the globe are less than eager to integrate AI into their browsing and buying experiences, according to new data from online commerce firm Digital River. The group’s survey of 3,000 consumers across the U.S., U.K. and Germany revealed that security concerns and a general lack of familiarity with the advanced technology have left many feeling wary about its use.
More from Sourcing Journal
Only 27 percent of survey respondents said they were versed in AI prior to taking the survey, and 29 percent fingered data security and privacy as their top reasons for being uncomfortable with using AI-based tools. While shoppers are increasingly gravitating to personalized experiences, like customized product recommendations, 54 percent said the lack of control over their data outweighed the upsides of such conveniences.
Thirty-six percent of survey-takers who had used AI in the past said they were familiar with its ability to provide search and filtering capabilities, while 34 percent pointed to targeted product recommendations as its most impactful use. However, only 32 percent of shoppers felt comfortable with AI automating routine product orders, with 42 percent saying they prefer to have total control over their purchasing decisions. More than one-quarter (29 percent) expressed doubts about AI’s ability to truly understand their preferences, while a near-equal number said they prefer to order their own goods based on shifting needs.
“It’s no surprise to see that shoppers have been slow in embracing AI in its nascency, especially given hesitations around data security and surrendering control,” Digital River chief marketing officer Ted Rogers said in a statement. “It takes time for new innovations to be widely adopted, but brands should be proactive in honing their approach to AI and identify potential use cases to stay ahead of the curve.”
Shoppers in the U.S. have generally been the slowest to acclimate to AI’s continuing rise. The firm’s data showed that they are less likely to understand or engage with AI tools than their counterparts in the U.K. or Germany.
German respondents were most likely to be familiar with AI (33 percent), compared to 24 percent in the U.S. Nearly two-fifths (38 percent) said they would likely allow the technology to automate routine orders, compared with 31 percent in the U.K. and 28 percent in the U.S.
German consumers were also much more enthusiastic about the efficacy of on-site AI tools. Only 15 percent questioned the usefulness of AI chatbots—significantly fewer than the 27 percent in the U.K. and 26 percent in the U.S. More than two-fifths (42 percent) of all respondents flagged misinterpreted queries as a downside of using AI, while 37 percent were vexed by the technology’s inability to handle complex requests.
One-third of those queried said they were annoyed by the difficulties they faced in escalating an issue to a human support provider. In America, 72 percent of shoppers said interacting with a real-life associate was important to them, two percentage points higher than the global figure.
Despite the meteoric growth of e-commerce over the past decade, consumer preferences have shifted in the wake of the pandemic to favor omnichannel commerce. According to Digital River analysts, shoppers prefer to buy certain products online and others in stores—and they’ve also grown accustomed to blending the two experiences, with some purchasing journeys beginning on the web and ending in person. When asked where they tend to start the shopping process, 38 percent pointed to the web, while 22 percent identified a combination of online and physical retail.
A notable majority (63 percent) of survey takers across the world said they prefer to shop in stores, compared to 33 percent who said they favor e-commerce. The U.S. boasts the highest number of physical retail enthusiasts (70 percent), followed by the U.K. (60 percent) and Germany (59 percent).
Over half (51 percent) of those who prefer to shop online said convenience was the determining factor, with 37 percent citing the ease of locating sales as the reason. Meanwhile, 37 percent said they valued the personalized recommendations they receive, and 26 percent said that user-generated content like product reviews was important to them.
When it comes to products like groceries (80 percent), toiletries (70 percent) and apparel and accessories (56 percent), the majority of respondents said they favor the experience of shopping at retail. More than two-thirds (67 percent) said they prefer to see items with their own eyes, and 56 percent want to try on the clothes, shoes and other fashion products they intend to buy. Nearly three-fifths (58 percent) of consumers said they prefer to purchase “lower variance items” like books and media online, and 51 percent said the same about electronics.
