Source: www.fibre2fashion.com
Generative AI is reshaping the first steps of shopping experience before clicking buy, as per a new global study from the Institute for Business Value (IBM), in collaboration with the National Retail Federation (NRF). From hyper-personalised suggestions to curated inspiration, influence now begins long before a store visit or app tap, moving where brands and retailers compete to an entirely new level.
The study found that while nearly three-quarters of surveyed consumers (72 per cent) still shop in stores, almost half (45 per cent) turn to AI for help during their buying journeys. Shoppers still want to see and touch products, but today's savvy consumers increasingly arrive with a sense of what they're looking for and why. They are using AI to research products (41 per cent), interpret reviews (33 per cent), and hunt for deals (31 per cent).
Generative AI is reshaping early shopping decisions, with 45 per cent of consumers using AI for product research, reviews, and deal-hunting, as per an IBM–NRF study. While stores remain important, AI-driven discovery now guides choices before purchase. Brands must redesign journeys around AI moments, ensure data readiness, and invest in AI skills to stay competitive and build long-term trust.
As AI reshapes consumer decision-making, brands and retailers must redesign shopping journeys around future AI-driven moments, using agents to reduce uncertainty early through research, comparison, and personalised support. Strong data readiness and end-to-end testing are essential to overcome cross-channel challenges. Companies should leverage AI to scale relevance while preserving brand distinctiveness, and invest in AI skills and strategic partnerships to build expertise and deploy AI responsibly.
AI is reshaping where, when, and how decisions are made across every industry. In retail, understanding AI-influenced consumer behaviour will become a defining competitive advantage, separating brands and retailers that shape decisions from those that simply fulfill them.
