Putting The AI Into Retail: How to Balance Personalization and Consumer Trust

As important as it is for marketers to continue to take advantage of the AI tools at their disposal, it’s just as important to understand how consumers are using the technology.

And while new Omnisend research on AI’s benefits found that 38% of consumers appreciate its ability to tailor recommendations, two-thirds are against using AI to make purchases for them in a shopping-assistant capacity, even with the promise of better deals.

(Source: Omnisend)

“AI is great for helping people shop, but when it comes to actually making a purchase, most draw the line,” Omnisend’s Aistė Jočytė writes. “They like AI as a tool, not as a decision-maker.”

Consumer Insights on AI Usage

Omnisend’s research comes at the same time as the release of an NLX and QuestionPro survey of executives of large 5,000-plus-employee companies, in which 47% said they were comfortable with AI making decisions and completing tasks on behalf of their customers, with an additional 40% saying it depended on the type of decisions and tasks.

Omnisend found that 58% of the consumers it surveyed worry about their personal data in AI’s hands, though 28% say “they don’t trust any company with their data at all.” On a tangible level of AI’s actions, 42% said the number of targeted ads and upselling is “AI’s biggest drawback.”

“This is where retailers need to be careful,” Jočytė writes. “Personalization is great, but if it starts to feel too aggressive, it backfires.”

Omnisend’s ultimate assessment is that AI is best considered an assistant to the shopper rather than a consumer-control simply programmed to make sales.

“The retailers that get it right will be the ones that use AI to genuinely improve the shopping experience, rather than automating for the sake of it.” Jočytė writes. “If brands prioritize customer needs over sales objectives, they’ll be the ones that earn long-term loyalty and engagement.”

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