, APAC
105 views
Shutterstock photo

Shoppers welcome AI assistance but resist automated buying

Only 33% are open to autonomous purchasing.

Consumers are embracing artificial intelligence (AI) for product research and comparison but remain reluctant to let AI make purchasing decisions, according to a report from IPSOS.

Between 67% and 71% of consumers either use or would consider using AI to research products, understand features, compare prices and read reviews. Only 33% show openness to automatic purchasing without human approval.

Overall, 62% of consumers want AI to work within boundaries they have already set, whilst 39% would give AI greater latitude to make or influence brand choices.

Some 71% believe AI could be dangerous and should be approached with caution. Only 45% trust companies using AI to protect their personal data.

Trust varies across markets and demographics. In India, 73% trust companies using AI with their data, compared with 25% in Canada. Amongst generations, 48% of Gen Z trust AI with their data compared with 33% of Boomers. Trust is 53% among high-income consumers and 35% among low-income consumers.

AI trust also corresponds with usage. China has 68% trust in AI and 45% use AI for product research, compared with France, where 26% trust AI and 19% use it for product research. In the US, 39% trust companies using AI with their data and 26% use AI for product research.

AI acceptance varies by shopping task. Researching products, understanding features, comparing prices and reading reviews have the highest openness, at 67% to 71%. Creating shopping lists, planning budgets, finding alternatives and getting gift ideas have medium openness, at 51% to 61%.

Gen Z has the highest regular AI use at 43%, followed by Millennials at 38%, Gen X at 29% and Boomers at 18%. However, 48% of Gen Z reject autonomous purchasing. Among Boomers, 69% reject auto-purchase.

Market acceptance also varies. China and India have 66% and 60% openness to autonomous purchasing, respectively, whilst actual usage is 21% and 24%. Brazil and South Korea record 45% and 37% openness.

Canada, France, Germany and Japan have lower acceptance, with 16% to 17% openness to autonomous purchasing and actual usage at 2% to 4%.

The research calls for different AI strategies across markets. In China and India, brands can lean into AI capabilities, although 28% to 29% still explicitly reject autonomous purchasing. In Japan, France and Canada, AI can enhance experiences behind the scenes, including human interactions, logistics and personalised service.

In the US and Brazil, brands can offer customers greater choice and control over AI features.

AI potential also varies by product category. Replenishment items such as household 
basics and batteries have higher automation potential, although only about a third of consumers show openness to autonomous purchasing.

For experience goods such as clothing, entertainment and software, AI can support research and comparison. For considered purchases such as electronics, alcohol and premium items, AI can narrow options whilst human touchpoints remain important.

For trust-intensive goods such as baby products and health products, final purchase decisions require greater human involvement, whilst AI can support advice, wellness planning and navigating choices.

With AI acceptance differing by as much as 50 percentage points between markets, brands and retailers must balance AI innovation, automation, personalisation and the traditional touchpoints consumers continue to demand.
 

Join Retail Asia community
Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Pomelo operator bets on clothing reuse
Garment recycling remains costly without government or corporate support.
Winning Gen Alpha takes more than AI
Parents remain the gatekeepers of children’s spending and personal data.
IKEA Indonesia deepens local sourcing ties
The retailer works with 18 Indonesian suppliers across three product categories.