Consumers increasingly expect generative artificial intelligence (genAI) to enhance their shopping experiences, as a new survey revealed that genAI-driven assistance is becoming a key factor in purchasing decisions both online and in stores.
Coveo, an enterprise AI platform specializing in AI search and genAI, has released its fifth annual Commerce Relevance Report titled "Can GenAI Close the Gap Between Online and In-Store Experiences?" The report examined consumer expectations, frustrations, and purchasing behaviours, focusing on how genAI reshapes retail.
The study, conducted in partnership with Arlington Research, surveyed 4,000 consumers across the US and UK. Findings indicated that shoppers increasingly expect genAI-driven assistance. Sixty-two percent stated they are more likely to complete purchases when guided by genAI, a figure that rose to 68 percent among millennials.
Peter Curran, general manager of commerce at Coveo, stated that consumers now expect genAI to enrich their shopping experiences, making them more relevant, convenient, and informative. He explained that genAI does not replace search but enhances it by integrating it into key touchpoints like the search bar, product pages, and shopping carts. According to Curran, this technology is reshaping how consumers discover and select products, strengthening the connection between retailers and their customers while driving higher conversions and revenues.
The report identified several trends in consumer behaviour, particularly in the continuing convergence of online and offline shopping experiences.
The findings showed that online research plays a critical role in purchasing decisions. Seventy-seven percent of consumers research products online before purchasing, even if they ultimately buy in-store. The findings suggested that a strong digital presence is essential for e-commerce sales and driving in-person transactions.
Shoppers continue to express frustration with poor search experiences on retail websites. Seventy-two percent of consumers abandon e-commerce sites when they cannot find what they need quickly. At 53 percent, more than half turn to Google, while 36 percent opt for a competitor's site. Younger generations and higher-income shoppers are particularly likely to leave due to poor search functionality.
Social media has become a key discovery tool, with 73 percent of consumers finding products on these platforms. However, only 37 percent complete their purchases there. Younger consumers, such as Gen Z (58 percent) and millennials (54 percent), are more comfortable shopping directly through social platforms, while older shoppers prefer e-commerce websites due to their perceived security and transparency.
The report highlighted that trust plays a significant role in consumer decision-making. Fifty-eight percent of shoppers are willing to share personal data with trusted brands in exchange for better deals and more personalized experiences. However, retailers must communicate how they use consumer data, as transparency remains critical for building engagement.
Coveo's latest report suggested that genAI is enhancing digital shopping experiences and bridging the gap between online discovery and in-store purchases. The report emphasized that as consumer expectations continue to evolve, retailers may need to further integrate AI-driven solutions to remain competitive.