Traditionally, shopping advice came from friends, parents, relatives and even online reviews. Now, consumers have found an unlikely shopping companion — artificial intelligence, though it is yet to earn the same level of trust.Generative AI and other digital tools are increasingly becoming part of the shopping journey, helping consumers discover products and weigh their options, even as their trust in these sources remains low.According to a report by McKinsey Podcast, trust in generative AI has fallen below 40 per cent. “We found significant skepticism around algorithm-driven channels like social media, and in particular generative AI, where the trust level is below 40 per cent,” Danielle Bozarth, global leader of McKinsey’s Retail and Consumer Packaged Goods Practices said in an episode of The McKinsey Podcast.Younger consumers are also showing limited trust in recommendations from family and friends. At the same time, they are drawing on a wider range of information before making purchasing decisions.“While these consumers are bringing more sources of information into their consideration set, they trust those sources significantly less,” Bozarth noted. “That creates a real challenge for brands and influencers as they try to shape the consumer decision journey.”The changing way consumers search for information is also creating a new challenge for brands. The research found that brand-owned websites account for minimal direct citations in AI responses, prompting companies to adopt generative engine optimisation strategies.These strategies are aimed at helping algorithms understand structured specifications, product details and frequently asked questions.The podcast highlighted four broad trends influencing how consumers shop: a technology-led path to purchase, a broader health revolution, an expanding experience economy and the emergence of the resourceful consumer.For the latter group, getting value from a purchase is no longer limited to its initial price. Clarisse Magnin, senior partner at McKinsey, said consumers are increasingly considering how useful and durable a product is.“Resourceful is exactly the right word because consumers are becoming increasingly creative when it comes to getting greater value for their money,” Magnin stated.“Consumers are evaluating durability, usefulness, repairability, resale value, and other factors,” Magnin added. “For executives, that means value needs to be designed into the offering from the beginning, not simply added later through promotions.”Generative AI is meanwhile finding its strongest consumer adoption in purchases that involve greater consideration, particularly in travel, beauty and fashion. The trend is forcing businesses to adjust their operational and marketing strategies rapidly.
