Key Takeaways
• 58% of consumers now prefer Gen AI tools over traditional search engines for product and service recommendations, a significant rise from 25% in 2023.
• Gen Z and millennials strongly demand hyper-personalized shopping experiences powered by Gen AI.
• Although adoption is rising, consumer satisfaction with Gen AI tools has declined from 41% in 2023 to 37% in 2024.
• 70% of consumer product and retail companies now view Gen AI as a transformative technology in their strategies.
More than half of consumers, 58%, are now turning to generative AI (Gen AI) tools instead of traditional search engines for product and service recommendations, according to the Capgemini Research Institute’s fourth edition of “What Matters to Today’s Consumer.”
This is a sharp increase from 25% in 2023, signaling a transformative change in how consumers research and make purchasing decisions.
Personalization Drives the Trend
The demand for hyper-personalized shopping experiences is particularly strong among Gen Z and millennial consumers.
The report indicates that two-thirds of these younger demographics expect content and recommendations tailored specifically through Gen AI.
At the same time, overall consumer satisfaction with Gen AI technologies has declined. In 2024, only 37% of consumers expressed satisfaction with Gen AI tools, compared to 41% in 2023.
This drop suggests that while usage is growing, meeting consumers’ evolving expectations remains a challenge.
• Satisfaction with Gen AI tools fell to 37% in 2024.
• Retailers face a growing need to deliver truly customized experiences.
Retailers Recognizing Gen AI’s Transformative Potential
Retailers and consumer product companies are adjusting their strategies rapidly. According to the study, seven in 10 companies now perceive Gen AI as a transformative technology, a significant shift from previous years where AI adoption was often seen as experimental or optional.
In discussing these findings, Lindsey Mazza, Global Retail Lead at Capgemini, emphasized the importance of consumer-centric AI integration:
Mazza also pointed to another rising trend that retailers must address:
Consumer Expectations Continue to Evolve
Although enthusiasm around Gen AI continues to grow, challenges remain. Poor customer experience and concerns over sustainability are still major drivers when consumers decide to switch brands, according to the study.
Additionally, while three-quarters of consumers are open to receiving Gen AI recommendations—an increase from 63% in 2023—the decline in satisfaction highlights a clear demand for improvements in personalization, transparency, and user experience.
• Poor customer service and sustainability issues prompt brand-switching.
• Bridging the gap between openness and satisfaction is essential for brands.
The Capgemini Research Institute’s findings make it clear: Generative AI is no longer an emerging tool—it is now central to the consumer experience.
Retailers that prioritize genuine personalization, responsible innovation, and sustainability will be better positioned to foster long-term loyalty and thrive in an increasingly AI-driven marketplace.
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