AI is increasingly at the forefront of consumer decisions, particularly promotions and purchase reminders, according to a new from study from EY.

The latest EY Future Consumer Index shows that 71% of 500 Canadian respondents – included among a data set of 23,000 people spanning multiple countries – are actively using artificial intelligence (AI) on e-commerce platforms. Canadians are turning to AI and digital platforms to help make more informed purchasing decisions by identifying cheaper alternatives to costly products and services in an inflationary environment, the study reveals.

The numbers also show that 61% of respondents believe AI will improve online shopping in the future, despite only 18% of Canadians fully understanding the technology.

Trust in AI is also growing, with 61% trusting the technology to offer tailored promotions and 53% trusting it to provide purchase reminders, a 6% increase since April 2023.

This is important for marketers to be cognizant of, particularly as The EY Future Consumer Index shows that as price sensitivity is growing, consumers are buying less and trading down in search of value with 55% only buying brands that are on promotion.

“We’re seeing a shift towards independent consumerism, where people are actively seeking out information, making decisions and taking actions autonomously,” says Elliot Morris, EY Canada grocery and CPG leader. “With that, consumers are becoming more self-directed and tech-savvy in their shopping journeys – leveraging AI to discover savings and create convenience.”

The index shows 59% of consumers trust AI-generated imagery to show them what a product would look like on them, 50% trust AI to take size measurements via their phone camera and 56% are happy for AI to answer their questions about an item.

EY Canada says CPG leaders are also more likely than their retail peers to believe AI will have a significant impact on revenue growth now and within the next two years.

The insights firm warns, however, that brands cannot rely on AI alone, and that marketers ultimately need to communicate their authenticity and trustworthiness, and to emphasize the human touch.