2024 Consumer Study: Revolutionize retail with AI everywhere

Today’s technology can make shopping faster, easier, and more precise than ever before. So why are consumers still waiting in line?

From slow checkout lanes to absent associates, in-store shoppers are still struggling with the same headaches they’ve always faced. Online, the situation is only slightly better. According to our survey of 20,000 consumers across 26 countries—only 9% of consumers say they’re satisfied with the in-store shopping experience. For e-commerce, that figure climbs to just 14%.

Our 2024 consumer study analyzes customer preference and customer behavior—and what drives decision-making. We found that, despite the supercomputers in their pockets, consumers must often spend hours searching for the right products, scouring product recommendations and reviews, comparing prices, and assessing sustainability performance.

3 in 5 consumers would like to use AI applications as they shop.

Consumers know brands and retailers can do better. Leading digital experiences have shown them what’s possible, and they now expect companies to infuse technology to create a connected, omnichannel shopping journey.

More than half say they would like to use bots or virtual assistants (55%), augmented or virtual reality (55%), and AI applications (59%) as they shop. In fact, roughly four in five consumers who haven’t yet used artificial intelligence for shopping would like to see how it can help them research products or get product information (86%), look for deals and promotions (79%) or get service, ask questions, and resolve issues (82%).

Consumers want AI to simplify the shopping journey

When technology is integrated to improve the customer experience—not added as an afterthought—brands and retailers can finally deliver the convenience and flexibility consumers have come to expect. Here are three growth imperatives facing the consumer products and retail industries in the AI era:

Experiences must be seamless, dynamic, and contextual

Shoppers are no longer content with one-size-fits-all experiences. As they move across touchpoints, consumers expect companies to recognize them, remember their preferences, and serve them appropriately. They want to easily access their orders, shopping carts, and purchase histories every step of the way.

They crave more choices but less hassle, with accurate inventory data, delivery timelines, and targeted offers available in real time, at the click of a button. Most of all, they want things to just work. But they often don’t.

Nearly two-thirds of Gen Zers and Millennials want to shop for products from multiple brands on a marketplace with a single checkout.

For example, many chatbots still lack the training, capabilities, and skills needed to understand basic requests and answer customer questions. As a result, only about one-third of consumers who have used chatbots and virtual assistants are satisfied with the experience. In fact, nearly 20% were so disappointed that they don’t want to use them again.

To deliver the streamlined experiences consumers expect, brands and retail businesses must tap AI technology, automation, and machine learning algorithms to create connected experiences. By personalizing the journey, enabling shopping platforms, and making payments more convenient—while tapping customer data responsibly—companies can transform retail experiences.

Brands must be sustainable—and be able to prove it

As environmental issues continue to intensify, consumers are looking for information that will allow them to make more responsible choices. And they want hard data, not vague PR statements.

In our 2022 and 2024 surveys, roughly two-thirds of consumers said trust is important when choosing a brand—and purpose-driven consumers remain the largest market segment (45%). Overall, 78% of consumers say sustainability is important to them when choosing a brand—and 61% say they’re willing to alter their habits to help reduce negative environmental impacts.

73% of consumers who care about sustainability are willing to pay more for sustainable products—up from 50% in 2022.

However, only 41% of consumers say they have sufficient information to shop sustainably. Consumers want to see how companies measure up in the areas they most care about. But consumer companies aren’t reporting enough of those metrics.

Generative AI solutions can address this issue by putting real-time data within reach. It can create end-to-end visibility across the enterprise—and the entire supply chain ecosystem—to offer nearly instant insights into both operational performance and environmental impacts.

Make real-time operations a reality

Consumers want to find the right product quickly, no matter where they shop. Real-time inventory information, real-time offers, and real-time supply chain intelligence can help retailers and brands attract shoppers' attention by giving them what they want, when they want it.

Retail AI can help companies improve inventory management by using sales and market data to make demand forecasting more accurate. But real-time data must be connected for it to be valuable. That means brands and retailers must also help build an intelligent supply chain that lets all partners track products—and accurately forecast how long it will take to get them into specific customers' hands.

Real-time supply chain management and predictive analytics can also help companies identify bottlenecks and increase optimization. In large geographic regions, such as the US, accurately predicting where and when to stock products in-store can often be more cost-effective than fulfilling digital orders from a centralized warehouse.

2 in 3 consumers shop for products in-person—and 73% say they rely on physical stores to purchase goods.

However, two-thirds of consumers learn about new products online. By anticipating what people want, curating featured products, and making personalized recommendations online, AI can help companies introduce new products to the customers they were designed for, rather than relying on expensive merchandising displays to reach target customers in stores.

Download the full 2024 consumer study for more data highlighting what consumers crave in the AI era—and actions that brands and companies in the retail sector can take to drive growth and boost customer loyalty in a transforming market.