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Less than half (41 percent) of shoppers in the United Kingdom think that artificial intelligence (AI) is having a positive impact on their retail experiences. However, over two-thirds (70 percent) do prefer brands with personalized recommendations, which is how AI is often used in online retail.

These data come from new research conducted by SAP Emarsys. Over 2,000 shoppers in the United Kingdom were surveyed. The research tried to get an overview of the general consensus on AI in retail.

AI in ecommerce

Within ecommerce, the use of AI is becoming more widespread. A couple of months ago, Zalando introduced a beta version of a fashion assistant powered by ChatGPT. Additionally, AI is often used to create personalized offerings in newsletters from online stores, for example.

‘Only 31% of consumers can tell the difference between a human and an AI chatbot.’

According to the research, 25 percent of consumers in the United Kingdom are worried that AI will negatively impact their shopping experience. Additionally, 91 percent said that they would rather interact with humans than AI. However, only 31 percent can tell the difference between a human and an AI chatbot.

Consumers do not recognize AI

The research indicates that consumers do not realize that AI is behind their customer experiences. Shoppers enjoy personalized content, custom recommendations and speedy checkouts, but do not realize that AI is behind these advancements.

‘AI can enhance user experience in everything.’

“The benefits of AI in retail cannot be overstated: not just for brands but, for customers as well. It is clear that, at present, shoppers are not entirely convinced on AI’s value – but when used responsibly, AI can truly enhance user experience in everything from receiving the right recommendations to easy purchasing processes”, said Kelsey Jones, global head of product marketing at SAP Emarsys.

Data collection and education

Consumers are often concerned about the collection of data for AI. At least 60 percent want retailers to create a better balance between collecting data and improving shopping experiences.

‘It is essential that retailers educate consumers about data collection.’

“The personalized experiences that drive business growth and establish long-term customer loyalty are not realistic without data, so it is essential that retailers educate shoppers and strike a mutually beneficial balance for data sharing. In order to do that, transparency is critical; brands need to explain how data is being used, and the direct value it offers to consumers in terms of driving the personalization that they so desire at every touchpoint.”