Dive Brief:
- Two-thirds of consumers say they would refuse to let AI make purchases on their behalf even if they would get a better deal, according to a survey of more than 1,000 consumers released last month by Omnisend and conducted by Cint.
- Some shoppers still believe AI can be useful. Two in five say personalized product recommendations are the most useful AI-powered feature, while 3 in 10 say AI helping them discover products faster is the most useful application.
- However, data concerns remain a sticking point. Nearly 3 in 5 of consumers say they are worried about how AI handles their personal data, while another 3 in 10 say they don’t trust any company with data handling.
Dive Insight:
Trust is a significant barrier that keeps customers from fully embracing AI-powered shopping experiences.
“Consumers already feel manipulated and misled by the way data collection and usage have evolved over the past few decades,” Terra Higginson, principal research director at Info-Tech Research Group, said in an email. “Companies need to understand that consumers are already skeptical.”
Companies should disclose when and how they use AI, especially when the AI is making decisions or using customer data, according to Higginson. Companies that act proactively and ensure they have safeguards in place are in a better position to win trust and grow adoption.
Even if consumers learn to trust AI, limits may remain. The technology has access to a lot of data, but that doesn’t necessarily mean it has enough to complete transactions without customer input, according to Higginson. She brought up the example of using AI to purchase a plane ticket.
“In this complex purchasing workflow, some travelers may prioritize price or carbon impact, while others may prefer specific airlines for safety reasons,” she said. “Without fully understanding individual preferences, AI should act as a smart summarization tool, presenting key options with pros and cons.”
Companies that focus on using AI to dig through large amounts of data to surface key insights can improve customer experience while building trust in AI-powered recommendations, according to Higginson.
Companies should make sure they understand what customers want from AI recommendations.
Two in five shoppers say AI currently feels more like an upselling tool than a helpful assistant, according to the Omnisend survey. Another 2 in 5 cited the flurry of targeted ads as the main drawback of e-commerce AI in its current state.
Companies may also want to be wary of AI that gets in the way of otherwise smooth transactions. Two in five consumers say they have abandoned a potential purchase due to frustrating AI interactions, which include inaccurate recommendations or poor chatbot experiences.
“Consumers want AI-driven workflows that save time and money,” Higgins said. “No one is willing to endure the cognitive frustration of a confusing and difficult-to-follow AI experience. We are all too busy for frustrating user experiences.”
