TL;DR:
- Irish consumers exhibit caution regarding the use of generative AI in retail.
- Familiarity and trust with the retailer influence their acceptance of AI.
- 70% are aware of generative AI, but only 16% are excited about it.
- Half of the respondents are reluctant to embrace AI for personalized product recommendations.
- Similar reluctance is observed for AI-powered virtual try-on services.
- Consumers are more open to AI if it offers time or cost savings.
- 63% are open to budget-aligned product recommendations.
- 60% are receptive to tailored gift suggestions.
- 56% consider recommendations for complementary products.
- There is a generation gap, with older consumers being more hesitant.
- European Union establishes regulations for AI’s impact on fundamental rights.
Main AI News:
Irish consumers exhibit cautious optimism when it comes to the integration of generative artificial intelligence (AI) in their retail experiences. A recent study conducted by Accenture in Ireland unveils intriguing insights into shoppers’ perceptions of AI, revealing that familiarity and trust play pivotal roles in shaping their acceptance of this transformative technology.
The survey, which encompassed the responses of over 1,000 consumers in the Republic of Ireland, highlighted a significant trend: the more personalized AI becomes, the more apprehensive shoppers tend to be. While approximately 70% of respondents were aware of generative AI, only 16% expressed genuine enthusiasm for its implementation in both online and in-store retail environments.
When it came to AI’s role in providing personalized product recommendations, with the technology analyzing past purchases and other data, roughly half of those surveyed expressed reluctance to embrace this form of assistance. A similar percentage of shoppers also hesitated to welcome AI-powered virtual try-on services, which predict how a particular clothing item would fit the customer.
However, there is a glimmer of hope for generative AI, particularly when it offers tangible benefits in terms of time and cost savings. Approximately 63% of respondents indicated their willingness to receive product recommendations aligned with their budget. Moreover, 60% were open to receiving tailored gift suggestions, while 56% expressed receptiveness to recommendations for products that complement their current or previous purchases.
The research also underscores a substantial generation gap in the acceptance of generative AI. Consumers aged 55 and above displayed greater hesitation, with only 5% expressing excitement about its potential impact on the retail market. In contrast, 25% of 18–24-year-olds and 12% of 35–44-year-olds displayed enthusiasm for AI’s role in the shopping experience.
Denis Hannigan, Data and AI Lead at Accenture in Ireland, acknowledges the transformative potential of generative AI in the retail sector. He notes, “Generative AI has the potential to be a real game-changer in retail, transforming the way that businesses and consumers interact.” While some consumers harbor reservations, there is a discernible appetite for generative AI when it promises time, money, or convenience savings.
In a broader context, recent developments have seen the European Parliament and European Council align on a comprehensive set of harmonized regulations governing the application of AI across the European Union, particularly with regard to safeguarding citizens’ fundamental rights. This underscores the growing importance of AI in shaping the future of retail and society at large.
Conclusion:
Irish shoppers approach generative AI in retail cautiously, with trust and familiarity influencing their acceptance. The market should prioritize building trust and demonstrating tangible benefits to encourage wider AI adoption, especially among older consumers. Additionally, compliance with evolving European regulations will be crucial for AI integration in the retail sector.
