The emergence of artificial intelligence promises to revolutionize almost every aspect of our lives. But nowhere, perhaps, would a revolution in technology and logistics be more welcome than in the retail experience. IBM’s 2024 Consumer Study found that, online, only 14% of the surveyed 20,000 respondents in 26 countries are satisfied with the shopping experience, and only 9% of in-store shoppers feel the same way.
Despite the potential for technology that would render it faster, more convenient and precise, consumers still often find themselves grappling with persistent challenges, ranging from sluggish checkout processes to the absence of helpful store personnel.
Virtually, they frequently spend hours navigating the labyrinth of product searches, perusing recommendations and reviews, comparing prices and evaluating sustainability claims. Three out of five shoppers would be interested in using AI-based applications as they shop, the research found.
Of the survey respondents, 55% also expressed a desire to utilize bots or virtual assistants, 55% are interested in the possibilities presented by augmented or virtual reality, 79% are eager to use AI to help them finds deals and promotions, and a staggering 82% want AI to answer their questions and resolve their shopping problems.
It’s clear that consumers are ready for AI to simplify things. Rather than being an afterthought, brands and retailers need to meet the expectations of their customers by integrating new technology for their convenience. And so, in the age of AI, IBM’s report focused on three potential factors in the retail industry:
Shopping must be simple and precise.
One-size-fits-all experiences don’t impress consumers anymore. They want to be recognized as individuals, receive personalized service, have easy access to their purchase history and their pre-selected preferences across all touchpoints. The challenge, for retailers, will be in making technology work effortlessly to meet these expectations. For instance, chatbots, a potential solution, currently fall short in understanding basic requests and leave only one-third of users satisfied. Brands must leverage AI, automation and machine learning to create connected experiences that redefine retail.
Sustainability is non-negotiable.
As environmental concerns only intensify, consumers are looking for transparency and the real and verified data on brands’ sustainability efforts. Despite 78% of survey respondents expressing the importance of sustainability in their choices, only 41% felt adequately informed to shop through that lens. Generative AI solutions can bridge this gap, offering real-time data on operational performance and environmental impacts, encouraging trust and enabling consumers to make responsible choices.
Real-time operations now.
Shoppers crave efficiency and demand quick access to the right products. Real-time inventory information, offers, and supply chain intelligence can cater to this need. AI in retail can enhance inventory management, optimize supply chains and provide accurate forecasting based on market intel. This ensures that products reach customers when they need them, whether they be in-store or online purchases.
When it comes to the retail space, embracing AI is not just a choice but a necessity for the retailers that want to truly cater to their consumer base. In a rapidly transforming market, the brands in this space that integrate AI and provide a seamless shopping journey, will see growth and customer loyalty.