Consumer research released by SCAYLE, an enterprise commerce platform, uncovers pain points for US shoppers, revealing 71 per cent are uncomfortable with some of the AI tools retailers are using, and one in three are now putting prices before brand loyalty.
Key findings from SCAYLE’s survey of more than 1500 US shoppers include:
- AI gone wrong: Only 18 per cent of shoppers are not uncomfortable with certain AI-driven features when shopping. Nearly one-third of consumers are uneasy with retailers’ use of facial recognition (32 per cent), 30 per cent with AI-created product images and models, and the same number with AI-powered customer service chatbots.
- Missed opportunities for innovation: Shoppers are open to AI being used for customer service and product discovery. 25 per cent rank customer service as the biggest positive effect of AI, while 19 per centsay product discovery will be the top area for transformation. Meanwhile, only 8 per cent believe convenience, e.g., voice commerce or shopping assistants, will have the greatest impact on their buying experience.
- Loyalty drivers: Product quality trumps all else for 53 per cent of consumers, followed by price competitiveness (38 per cent) and good customer service (31 per cent). When it comes to loyalty programs, 49per cent of consumers want to see regular discounts, and 36 per cent want added incentives like free shipping, or buy now, pay later options – with 35 per cent valuing loyalty programmes that are free of costs.
“We know US retailers are facing a challenging landscape right now, with a turbulent economic climate reducing consumer purchasing power, and tariffs set to squeeze bottom lines even further,” said Daniel Fertig, Director Partnerships at SCAYLE. “But our research shows that shoppers’ concerns go beyond just costs. Many retailers are betting big on emerging tech like AI to improve customer experience, so it’s interesting to hear that customers don’t feel this is currently paying off. Brands need to continue investing in AI to get ahead – but it’s clear customers want to see it used for product discovery and improving customer service, rather than AI-generated images or chatbots. The biggest takeaway is that – even during uncertain times – there are some immediate pain relievers for brands, like implementing AI solutions customers actually want, introducing incentive-driven loyalty programs, and prioritising product quality.”
The research also highlights some interesting generational divides among US shoppers’ behaviours and preferences:
- Gen Z leads in subscription adoption: 67 per cent of Gen Z consumers (ages 16-26) are likely to sign up for subscription services from retailers they shop with. This is more than double the number of Baby Boomer shoppers (ages 59-68) likely to sign up (31 per cent), and significantly higher than the 56 per cent average across all age groups.
- Millennials are most open to discovering new brands: When shopping on a marketplace, 30 per cent of Millennials (ages 27-42) are looking for new brands to try, compared to 18 per cent of Gen X and just 9 per cent of Baby Boomers.
- Gen X and Baby Boomer Shoppers are most price-conscious: 59 per cent of Baby Boomers and 57 per cent of Gen X cite lower prices as their top reason for choosing a large enterprise retailer over a local or medium sized brand, compared to just 37 per cent of Gen Z. 63 per cent of Gen X and 67 per cent of Baby Boomers would abandon a brand due to increased prices, compared to 44 per cent of Gen Z and 45 per centof Millennials.
- Baby Boomers remain sceptical of AI: 40 per cent of Baby Boomers express discomfort with AI chatbots, compared to 24 per cent of Millennials (ages 27-42) and 25 per cent of Gen Z.
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