Artificial Intelligence Generators and Social Media Influence Decisions Regarding Purchases
Going Shopping? AI and Social Media Rule Now
It's the new normal - consumers are leaning on AI tools and social media when it comes to shopping, according to a survey of 12,000 global shoppers by Capgemini.
Over two-thirds of consumers have ditched traditional search engines in favor of AI. More than two-thirds of shoppers want these smart tools to collate search results from search engines, social media platforms, and retailers' websites.
Younger consumers, especially millennials and Gen Z, are leading the charge. Almost two-thirds of these tech-savvy shoppers are using AI for product recommendations, like ChatGPT, which older generations, such as baby boomers, are less likely to use.
Social media is more than just a platform for sharing selfies and memes. It's become a primary source for the shopping journey, from discovering products to making buying decisions and reaching out to retailers.
Last year, nearly one-third of shoppers used social media to buy products and discover new brands, with Gen Z leading the way. Over half of Gen Z have even made a purchase through a social media platform.
Social media isn't just about product recommendations; it's also a hub for answering product-related questions, gathering reviews, and accessing customer service. Half of consumers use social media to search for product information and reviews, while two in five rely on it for customer service.
Reports suggest that Gen Z leans heavily on social media for shopping decisions. Over half of Gen Z have made an online purchase while browsing on social media.
Social media's influence isn't limited to Gen Z. Platforms like TikTok and Instagram are popular for product recommendations, with 85% of Gen Z stating that these platforms impact their shopping decisions.
Generative AI is making headway across all age groups. Nearly three in five respondents to an Adobe survey last year said AI had already improved their online shopping experience. Two-thirds of survey respondents wanted brands to analyze previous purchases and customer information to personalize the shopping experience.
While social media's role isn't explicitly covered in the sources, its synergy with AI tools amplifies personalized, frictionless shopping experiences, particularly for younger demographics.
AI enables smaller retailers to compete with large brands by automating personalized shopping experiences. There's even been a significant surge in retail site traffic due to AI sources, which reflects the increased reliance on AI for product discovery.
Men are more likely than women to experiment with AI shopping tools, while younger users prioritize speed and novelty over traditional search methods.
- AI tools, such as ChatGPT, are being used by tech-savvy shoppers, particularly younger generations like millennials and Gen Z, for product recommendations.
- Over half of consumers use social media platforms to search for product information and reviews, while two in five rely on social media for customer service.
- Generative AI has been found to improve the online shopping experience for a majority of survey respondents, with two-thirds wanting brands to analyze previous purchases and customer information to personalize the shopping experience.
- AI sources have shown a significant surge in retail site traffic, suggesting an increased reliance on AI for product discovery.
