Australians trust AI shopping advice over retail staff, study finds

AI is the first source for 23% of consumers versus 7% for sales assistants.

Nearly half of Australians trust artificial intelligence (AI) shopping recommendations more than advice from retail sales assistants, according to research commissioned by Manhattan Associates.

Another 29% trust both sources about the same. In total, 76% trust AI recommendations as much as or more than advice from retail staff.

AI is also becoming a first stop for consumers researching significant purchases, with 23% using it as their first source of information, compared with 7% who first seek advice from an in-store sales assistant.

More than four in five Australians have used an AI assistant such as ChatGPT, Gemini, or Copilot for shopping research, with 36% using AI for this purpose on a regular basis.

Raghav Sibal, APAC Vice President at Manhattan Associates, said AI is changing what consumers expect from retail staff.

“Consumers are using AI for product discovery, to compare options, and inform their purchasing choices. These are some of the many things they might previously have relied on a retail sales assistant for,” Sibal said.

When asked why they would choose AI over speaking to a retail sales assistant, 42% of respondents cited 24/7 availability.

Speed was the second most common reason at 20%, followed by the ability to compare products more easily at 19%.

Separate research from PayPal found price comparison was the most common way Australians use AI when shopping, with 57% of AI shoppers saying the technology helps them save money.

Despite the shift towards AI-led research, consumers continue to use retailer-owned channels.

The Manhattan Associates research found 84% of Australians would still be likely to visit a retailer’s website before buying, even if AI could accurately answer every product question. Another 81% would still be likely to visit a physical store.

Sibal said retailers must meet consumer expectations once shoppers move from research to purchase.

“Customers need to know whether it’s available, where it’s available, what it will cost and how quickly they can get it,” he said.