Constructor’s 2024 State of Ecommerce report reveals a compelling trend: a significant uptick in the adoption of Generative AI (GenAI) among consumers.
With 51% of respondents having experimented with tools like ChatGPT — up from 29% just last year — this marks a staggering 75.86% increase. Notably, while only 26% of those over 60 have engaged with GenAI, a striking 64% of shoppers aged 18-29 are diving into this technology.
This rapid adoption suggests a growing comfort with AI among consumers, presenting a critical juncture for retailers. Those who hesitate to explore these technologies risk missing out on an opportunity to provide an enhanced customer experience, engage with tech-savvy shoppers, and ultimately, increase their overall revenue.
It’s hard not to be curious about AI. It’s become more than a buzzword that, for better or worse, has changed the future of technology companies and customers alike. But the power of GenAI goes far beyond asking ChatGPT to summarize the latest article everyone’s talking about.
Online shoppers are feeling more at ease with the idea of using GenAI for product discovery purposes, with more than half of respondents (52%) saying they’d be “very” or “somewhat” comfortable using tools that understand human language like ChatGPT on a retail site to help find the right products. That’s up from 42% last year, and despite the generational divide –– only 34% of those 60 years and older claim to be “very” or “somewhat” comfortable –– that is a very large chunk of shoppers who are interested in an improved shopping experience.
In fact, 24% of survey respondents (up from 15% last year) say that if they were guaranteed an excellent search and product discovery experience, they’d be willing to pay 5-10% more for the item they’re seeking. That is a sentiment that ecommerce businesses cannot afford to ignore.
Specific use cases showcase where shoppers see the most value in GenAI. For instance, 43% would appreciate a grocery site that not only offers recipe ideas but also compiles a list of in-stock ingredients ready to add to their cart. Other scenarios generating interest include:
These insights align with findings from an Adobe survey, which further emphasizes that consumers are looking for smarter, more personalized shopping experiences.
Most customers are arriving at your site with little idea of what they want to purchase. In fact, a staggering 80% report that they “often” or “sometimes” visit websites feeling uncertain about their buying decisions. These aimless shoppers are craving an AI-generated nudge in the right direction through the form of:
Shoppers are also eager to see a variety of AI-driven enhancements. The top applications they desire include:
Given the success of Amazon’s Rufus, the GenAI-powered conversational shopping assistant that has fielded more than ten million queries, consumers are more than willing to take the time to ask the right questions to drill down to the best product fit.
Before diving into something new, it’s important to know what’s working and what isn’t on your site. Where are customers getting stuck in their journey? Are these snags places where GenAI could help? Analyze your data, and get a solid understanding of where customers struggle on your site. Identify points of friction and opportunities where AI can enhance their shopping experience.
Only once you have a clear understanding of the challenges your customers face is it time to explore the technology that can help.
Start by researching and assessing available tools for implementing GenAI solutions tailored to your ecommerce strategy. Prioritize capabilities like personalized product recommendations, virtual assistants, and enhanced search functions. Be sure to evaluate different options based on ease of integration, scalability, and how well they can be customized to fit your brand’s unique needs. Before diving into a full-scale implementation, consider testing a few solutions on a small scale to gauge their effectiveness.
Implementing new technology can be intimidating, but you don’t have to do it alone. Collaborate with technology partners who can guide you in navigating this rapidly changing space and can provide valuable insights into best practices. Look for partners that offer ongoing support and training, ensuring that your team is well-equipped to manage and optimize AI tools effectively. Leveraging their expertise can help you stay ahead of trends and adapt swiftly to changes in consumer behavior.
Consumers are diving headfirst into the world of Generative AI, weaving it into their daily routines and hoping to see their favorite online stores use the same technology to improve their shopping experience. Any retailers that remain stuck in the slow lane, hesitating to even test GenAI as part of their product discovery process, will miss out on engaging tech-savvy shoppers and an opportunity to increase revenue.
Survey says: dragging feet on adopting GenAI could leave most retailers in the dust. In the fast-paced world of ecommerce, those who don’t jump on the AI bandwagon might find themselves left behind — faster than an abandoned cart at checkout.
Want to see more data on changing consumer expectations and ways to improve experiences? Download the 2024 State of Ecommerce report.