A recent survey by Bain & Company highlights the growing role of generative AI in online retail, revealing that while most U.S. shoppers have unknowingly used it, they are optimistic about its potential. The study was conducted by polling 700 online shoppers. The findings show that 71% of U.S. consumers were unaware of using generative AI during recent shopping experiences.
Despite low awareness, consumers express optimism, with nearly half acknowledging generative AI’s potential to transform their shopping experience. Many are willing to share personal data, such as hobbies, preferences, and demographics, in exchange for personalized recommendations.
Bain Partner and Global Head of Design Merritt Robinson said, “The online shopping experience has been so finely tuned over the past couple decades that retailers’ near-term generative AI priorities should be about complementing existing shopping habits, rather than replacing them. It’s about enhancing, not disrupting, shopping flows. It may be somewhat counterintuitive, but this includes moving beyond some of the more explicit tools, like chatbots, to more passive solutions, such as summarized reviews on product pages. Much of the magic will then come from more proactive solutions, such as personalized content, tone of voice, and anticipatory service in customer interactions. Generative AI will help retailers stay in touch in more natural and helpful ways.”
Not all findings from the report were positive and there are still barriers to AI adoption. While 47% of respondents cite satisfaction with current methods as a reason for not engaging with generative AI, only 22% identify distrust of the technology as a concern. This suggests that lack of necessity, rather than skepticism, limits more widespread use.
Trust plays a pivotal role in adoption. The survey shows that 41% of consumers feel comfortable using generative AI tools from trusted brands. Yet, challenges like “hallucinations” or instances of inaccurate or misleading AI outputs pose risks. More than 50% of respondents cited inaccuracies and obvious errors as significant detriments to user experience, highlighting the need for transparency in AI applications.
Mikey Vu, partner and head of Bain’s Retail AI practice, notes that careful product design can mitigate concerns. “Generative AI provides a bridge to a more interactive and personalized retail experience. Some executives are understandably concerned about its tendency to deliver inaccurate information and the impact that can have on customer relationships. That’s why careful and thoughtful product design is pivotal. Setting expectations is key: ‘should generative AI be perfect, or should it be reliably better than today’s experience?’ In practice, we’ve actually seen generative AI’s customer responses be more accurate, on average, than those from human agents. Retailers who prioritize trust, transparency, and adaptability will unlock new levels of engagement and loyalty among their customers.”
Unlock the full insights from the survey here: https://www.bain.com/insights/generative-ai-potential-to-improve-customer-experience/
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