AI Shifts Retail Loyalty
Artificial Intelligence Shapes Gen Z Shopping Habits While Challenging Traditional Brand Loyalty
Anonymous
Key Points
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SAP’s research found that 23% of UK shoppers would be comfortable allowing an AI assistant to make purchases for them, while 23% would prefer AI recommendations to advice from friends and family. Among Gen Z consumers, 15% feel more loyal to brands that use AI to improve shopping and 21% feel more loyal to brands that market to them personally.
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The MACH Alliance study found that AI guides 41% of online purchases and influences 35% of social-media buying decisions; the latter rises to 50% among both Millennials and Gen Z. Millennials were also the most likely group to use AI for online search and discovery, at 92%.
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Wonder AI plans to deploy its smart-retail technology across at least 20 corporate clients and 100 branches in Thailand by the end of 2026, then expand to 100 enterprise accounts and more than 1,000 branches in 2027.
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Wonder AI’s CCTV-based analytics are designed to identify peak traffic periods, shopper dwell times, high-engagement zones and points where customers abandon their purchases, turning surveillance infrastructure into a commercial decision-making tool.
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Huawei said its new edge-AI infrastructure could support on-site retail applications such as checkout cameras that detect customer intent, dynamic pricing and responsive product displays, while predictive demand-planning systems could anticipate viral-trend-driven spikes and reduce markdowns.
Artificial intelligence is reshaping how Gen Z shops both online and in stores, but the technology is proving to be a double-edged sword. According to SAP research, 67% of UK consumers use AI for online search and discovery, while AI influences 42% of in-store spending—jumping to 62% among Gen Z shoppers. Yet nearly half of Gen Z consumers have switched brands because of how retailers used AI, revealing a stark trust gap between technological convenience and consumer comfort.
Retailers are racing to deploy AI-powered tools like computer vision, smart shelves, and dynamic pricing to win younger shoppers. However, success depends on transparency and data privacy. Nosto research warns that retailers without onsite AI search risk losing customers to ChatGPT and Claude, while consumers demand clear safeguards and human support when AI interactions fail.
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