More than a third of consumers are now using generative artificial intelligence tools to assist them with shopping, and younger shoppers are adopting the tech rapidly, according to a report by Acosta Group.
The trend offers opportunities and challenges for CPG companies looking to build their omnichannel strategies.
“Success requires brands to build new or elevated pathways for their products to be understood, recommended, compared and selected by any AI,” said John Carroll, president of Connected Commerce for Acosta Group.
While 34% of all shoppers are using AI to find products and compare prices, the percentage is much higher for Gen Z and Millennial consumers at 74%, according to the report. Meanwhile, nearly half (45%) of Baby Boomers have used generative AI to assist them in shopping.
How are consumers using AI?
Consumers are using AI in a variety of ways, including comparing products and searching for deals, according to Acosta. The firm noted that more than half (55%) of Gen Z shoppers use AI tools while shopping at brick-and-mortar locations.
Users primarily turn to AI – most frequently taking place on ChatGPT and Google Gemini – to help them choose among product options, Acosta’s survey noted. Half of all consumers said they are likely to choose a known brand over an unfamiliar one, the groups’ consumer survey noted, but 40% said they have tried a new brand suggested to them by AI.
Consumers use AI for shopping most frequently on products that are purchased repeatedly, such as groceries, household products and health and wellness products, the report said.
Trusting AI for shopping
Shoppers using AI tools to shop largely say they trust the technology at a rate of 60%, but trust can be broken when AI provides incorrect or misleading information.
Biased advertisements that result from AI searches also raise concerns, “further highlighting the need for brands to ensure accuracy of details across all platforms,” according to Acosta.
Nearly half of consumers (48%) voiced concerns about how their data is collected and used by various AI-powered shopping tools, the report added.
Younger consumers were less concerned about sharing data, though, Acosta said.
“Younger shoppers willing to share information with Gen AI say they are now more likely to share additional personal details, such as their photo or medical history,” the report noted. “Similarly, grocery shoppers willing to share information are now more willing to share their preferences, stores or brands with Gen AI.”
AI agents do the shopping for consumers
The rise of agentic AI, where autonomous agents make decisions for users, such as making purchases based on their own independent conclusions, are a tougher sell for consumers, the report explained.
Less than a quarter of all shoppers (22%) trust AI agents to do the shopping for them. That percentage reaches more than a third (35%) for Millennials.
“Shoppers’ trust in AI for product recommendations has been slow in evolving to allow agents to make purchases on their behalf, reflecting concerns for the privacy of their own lives and those of their families,” said Kathy Risch, SVP Shopper Insights and Thought Leadership for Acosta Group. “The more value shoppers experience with AI, the more likely they will share information, especially as brands and retailers provide transparency on how it will be protected. Companies that earn shopper trust now will be best positioned as AI becomes a more active purchase agent.”
Getting started with AI in CPG
Carroll recommends a four-pronged investment strategy for getting started with AI promotion:
- Retailer readiness: the brilliant basics.
- Shopper understanding: learning how consumers share needs, problems, occasions and desired outcomes.
- AI discoverability: confirming that AI systems consistently understand products and recommend them across platforms.
- Experimentation: consumer shopping behavior will evolve, so companies much test new concepts to stay relevant.
Acosta noted that sales using AI is changing rapidly, with half of Gen Z and Millennials saying the technology has influenced their purchase within the last three months.
“Brands’ and retailers’ future growth will require knowing how products move through the AI commerce stack we’ve defined, evolving from discovery to decision to transaction,” Carroll concluded.
