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AI-Driven Pricing and Promotions Valued by UK Shoppers

TL;DR

  • UK shoppers value AI-driven pricing and promotions in their online buying journeys, with 28% seeing it as a significant enhancement.
  • AI chatbots, while disruptive, are perceived as ‘clunky’ by 25% of UK consumers in their shopping experiences.
  •  Transparency and positive experiences are key to gaining consumer trust in AI, according to 61% of respondents.

As artificial intelligence (AI) continues to weave itself into the fabric of everyday life, UK shoppers are coming to expect retailers to harness AI to enhance their shopping experiences. A recent study conducted by Intellias, a retail technology partner, shed light on the growing role of AI in shaping the preferences of UK consumers when it comes to their buying journeys.

Widespread adoption of GenAI

The research, which surveyed over 1,000 UK shoppers, revealed that nearly half, or 45%, of UK consumers already incorporate Generative AI (GenAI) tools, such as ChatGPT, into their daily lives. This percentage soars to a remarkable 79% among Generation Z individuals. This widespread and swiftly growing adoption of GenAI is prompting consumers to take notice of where AI intersects with their shopping journeys. In fact, 42% of consumers are now aware of retailers utilizing AI in their shopping experiences, and they have clear expectations of how AI can enhance those experiences.

AI’s role in pricing and promotions

Amidst ongoing cost-of-living pressures that encourage shoppers to be price and promotions-conscious, AI applications in pricing and promotions emerged as the areas where UK consumers see AI adding the most value to their online shopping journeys. A notable 28% of shoppers expressed that AI-powered automated pricing and real-time promotions would significantly enhance their customer experiences. Additionally, 18% of those surveyed saw potential in AI’s use within loyalty schemes to deliver real-time personalized offers and rewards.

AI chatbots: Disruptive but clunky

While 14% of UK consumers acknowledged that AI-powered chatbots added value to their buying journeys, a surprising 25% noted that AI chatbots were the most disruptive AI application in their shopping experiences. Moreover, an equal percentage of respondents found automated chat functions to be among the most ‘clunky’ elements of AI when purchasing items.

Consumer trust and transparency

The rapid adoption of GenAI by both retailers and consumers in 2023 has inevitably led to some level of wariness among shoppers. About 43% of those surveyed expressed mistrust toward brands and retailers using AI in their shopping experiences. However, a majority, or 61%, stated that they did not mind retailers using AI as long as it was transparently communicated. This percentage rose to 66% among Generation Z consumers. Furthermore, 52% felt that their experience with a retailer or brand was the primary determinant of their acceptance of AI, emphasizing the importance of a positive shopping experience.

The future of AI in retail

Alexander Goncharuk, VP of Retail at Intellias, commented on the future of AI in the retail sector. He noted that the momentum surrounding GenAI is expected to continue to accelerate as we approach 2024. This acceleration will be driven by consumers becoming increasingly accustomed to AI interfaces in their daily lives and by retailers exploring different use cases to enhance efficiency and customer experience across the value chain.

Goncharuk emphasized that the key to delivering AI-powered value to shoppers hinges on transparency, seamless integration as part of the omnichannel shopping experience, and the development of robust and secure compliance procedures in the back-end.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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John Palmer

John Palmer is an enthusiastic crypto writer with an interest in Bitcoin, Blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience.

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