Consumers want to benefit from convenience and value of AI, but assumptions and fears remain – putting the onus on retailers to educate their audience
That is according to a new study by SAP Emarsys which revealed that just half of shoppers believe that AI is having a positive impact on their retail experiences.
Yet, over three quarters of shoppers say they prefer brands that offer personalized recommendations suggesting a conflict between consumer concerns about AI and their desire to reap the real-world benefits of its use.
The research, which surveyed over 4,000 U.S. shoppers, highlights an opportunity for retailers to educate and convert loyal customers. Almost a quarter of consumers are worried that AI will negatively impact their shopping experiences, while 86% say they’d rather interact with humans than AI. However, less than almost only 27% said they can tell the difference between a human and an AI chatbot online.
According to Emarsys’ analysis, this negativity is often because consumers don’t see that AI is behind their best experiences. While shoppers value personalized content, custom recommendations, and speedy checkouts, few realise that AI is behind these advancements.
The research also highlights that many consumers are concerned about the use of data collection for AI, with 63% wanting retailers to strike a better balance between collecting their data and improving their shopping experiences.
Realising the value of AI
Emarsys advises that retailers must educate their customers on the value of their data to elevate their experiences across websites, apps, and even mobile wallets.
Kelsey Jones, Global Head of Product Marketing at SAP Emarsys explains, “The benefits of AI in retail can’t be overstated: not just for brands but, for customers as well. It’s clear that, at present, shoppers aren’t 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.
“The personalized experiences that drive business growth and establish long-term customer loyalty aren’t realistic without data, so it’s 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 personalisation that they so desire at every touchpoint.
“This education will be essential for the widespread adoption of AI and the consumer benefits it brings, with leading retailers able to meet – and even anticipate – their customer’s expectations through the relevant, reliable, responsible use of embedded AI. That’s the real benefit of AI, making better, smarter decisions, faster.”
Data, data, data
Expanding on this, Ritu Bhargava, President and Chief Product Officer, SAP Industry & Customer Experience, said: “Without data — the right data, and enough of it — all the AI in the world won’t amount to one single meaningful insight that can help brands create the personalized experiences needed to drive business growth, provide value to consumers, and build customer loyalty.
“We typically see that people are more amenable to sharing their data when it provides direct value – in savings, efficiency, and stronger connections with brands. But transparency is critical to building the much-needed trust between a customer and a brand. Sharing how data is being used anytime a customer creates an account, signs up for marketing communications, or agrees to data sharing reassures customers that their data is being treated securely and compliantly.”
She added: “Retailers who can provide this transparency and direct value will enjoy the kind of widespread brand loyalty that comes from more personalized, value-oriented interactions, which can be the key to giving customers the brand experiences they truly want, when they want it, and where they want it.”
