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NEW YORK – Generative AI (Gen AI) is reshaping the retail industry, with 71% of shoppers eager for its integration into their shopping journeys, according to a new report from Capgemini, What Matters to Today’s Consumer.
This shift is driven mainly by Gen Z and Millennials, who prioritize personalized and seamless experiences. Around 50% of consumers are excited about Gen AI improving online shopping, while 75% embrace AI-generated recommendations, reflecting a significant increase from the previous year.
Gen Z is driving social commerce, with over half now making purchases through social media platforms. Their demand for faster delivery, personalized experiences, and seamless AI interactions is reshaping the retail industry.
Despite Gen AI's popularity, there's a gap between investment in the technology and consumer satisfaction, which has dropped slightly. According to the report, retailers must refine AI strategies to meet consumer expectations and enhance the shopping experience.
AI-generated avatars are becoming influential in product recommendations, with 25% of consumers trusting these digital personalities. Social commerce is also on the rise, with over half of consumers turning to social media for recommendations and 40% using it for customer service.
Personalized digital ads now influence nearly a third of online purchases, while in-store ads are falling short. Shoppers expect interactive displays and tailored recommendations when they visit stores.
