Cimulate and Future Commerce Release New AI Shopping Report

The findings point to a clear shift: Gen AI has become a front door to commerce, acting as a personal concierge that helps consumers discover, compare, and validate products, while driving high-intent traffic to brand and retailer sites for conversion.

Marketing Technology Insights: 

Key insights from the report include: TiVo Ads Launches New Home Screen Features To Drive Viewer Engagement

• Gen AI has moved from experimentation to habit formation. Awareness of AI platforms exceeds 80% across Gen Z, Millennials, and Gen X, with nearly 70% using Gen AI regularly. While 49% of consumers planned to consult AI first when shopping, actual behavior surpassed expectations with 80% of AI users reportedly asking AI first when researching holiday gifts.
• Deal-hunting fatigue is accelerating AI adoption. In Phase 1, 57% of consumers said they wanted AI to handle price comparisons. In Phase 2, 59% of AI shoppers used AI at least sometimes to find the best price. Economic efficiency is becoming AI’s killer feature.
• Expectations are rising once consumers shop with AI. Leading to the “Concierge Economy” shift, the Phase 2 AI shoppers are starting to rely on AI platforms for multiple steps of the journey including product comparison (57%), researching specific products from brands (55%), and getting product ideas and inspiration for a specific need (55%). As Gen AI starts to operate like a personalized concierge, getting to know its users’ preferences and interests, it continues to deliver even more value which sets new expectations for retailer & brand experiences.

• While AI is reshaping the top of the funnel – brands & retailers still own conversion. Across both Phase 1 and Phase 2 surveys, 77% of consumers said that when AI makes a recommendation, they would click through to a brand or retailer site for further research and purchase. This is compared to 23% who are willing to check out directly within AI platforms. While AI is supporting product discovery & research, the referral traffic is now extremely qualified, and brands + retailers need to be ready to convert.
• Physical retail discovery is disproportionately impacted. AI effects store visits more than branded eCommerce. In Phase 1 for consumers leveraging AI for holiday planning, 30% intended to visit stores less vs. 10% would visit branded eCommerce sites less. In Phase 2, that figure rose to 40% of consumers intending to visit stores less, an 11% visiting branded eCommerce sites less. This reinforces the role of eCommerce for confirmation and conversion and will force retailers to rethink what makes a store worth the trip.