One in five consumers has already used generative AI in shopping, according to a Capgemini Research Institute report.
Additionally, it is not just being used by Gen Z consumers but is prevalent across most age categories, only with a significant drop off among boomers.
In the report – What matters to today’s consumer: 2024 consumer behavior tracker for the consumer product and retail industries – the think tank takes a closer look at how consumer behavior is changing today and the factors that are shaping it.
It focuses on five broad themes around consumer behaviour, noting that consumers continue to express concern about their personal financial situations amid rising inflation.
Although 52% of consumers are still extremely concerned about their personal finance compared with 61% last year, there is reason for optimism. Only 43% of consumers fear their personal finances will worsen in the next 6–9 months, far below the 80% previously reported..
Among the themes, the report explores the increase in social commerce, as well as greater consumer concern around issues like sustainability, product origin and business practices.
For instance, scocial commerce continues to grow driven largely by Gen Z. In this category, 46% of consumers have already bought products on a social media platform. Consumers also prefer Instagram and YouTube as purchasing platforms while social media influencers are impacting consumers’ product discovery and purchasing processes. Almost one-third of consumers had discovered a new product/brand on social media in the preceding six months, broadly in line with the previous report.
Among its recommendations, Capgemini Research Institute suggests that brands and retailers use generative AI tools to become more consumer-centric while social commerce should be considered as a sales channel in its own right, especially for reaching Gen Z audiences. It adds that brands can more easily adapt if they lead with purpose. This could mean educating consumers on the sustainability impact of their shopping or reducing food waste.
Download report here
