Capgemini report highlights consumer shift to Gen AI tech

Capgemini has released the fourth edition of its annual consumer trends report, 'What Matters to Today's Consumer,' highlighting significant shifts in consumer behaviour and preferences.

Based on responses from 12,000 global consumers, the report shows a growing appetite for generative AI (Gen AI) in shopping experiences. In the UK, 74% of consumers were found to purchase based on Gen AI recommendations, significantly up from 58% the previous year. Furthermore, 61% have shifted from traditional search engines to Gen AI tools for product and service recommendations, up from 24% in 2023.

Sustainability remains a crucial factor for consumers when making purchasing decisions. The research finds that 70% of consumers switched to another retailer due to concerns about environmental care, stressing the importance of sustainability in consumer choices. Similarly, 70% of UK consumers notice ads during product searches on retailer websites and apps, though fewer, at 65%, notice such ads on social media platforms.

There has been a noticeable shift in engagement with influencers and celebrity brands, with the number of consumers purchasing from these sources dropping to 23% from 48% last year. Simultaneously, social media continues to serve as a customer service platform, with 31% of respondents frequently using it for such interactions.

Given the rise in demand for quick commerce, the report indicates an increasing importance of delivery speed in consumers' purchasing decisions. 53% of consumers prefer shopping options that offer 10-minute delivery capabilities as a key feature.

Perceptions of personal financial situations appear to have improved, with only 38% of consumers feeling extremely concerned about their finances, down from 51% in 2023 and 63% in 2022.

The report notes a decline in consumer satisfaction with Gen AI, with only 37% satisfaction reported in 2024 compared to 41% the preceding year. "Consumers today want personalised shopping experiences enhanced by AI and generative AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact," stated Lindsey Mazza, Global Retail Lead at Capgemini.

Demand for fast delivery is a growing trend, as highlighted by the report showing a leap in willingness to pay more for quick delivery from 41% in 2023 to 70% in 2024. This is particularly evident in India, Germany, France, Sweden, Spain, and the Netherlands.

The report also underscores the importance of sustainability to consumers, albeit with a caveat: while the willingness to pay slightly more for sustainable products has increased, the number of people ready to pay a premium of more than 5% is decreasing.

AI influencers are a rising trend, with 25% of consumers trusting them for product recommendations. Meanwhile, platforms like Instagram and TikTok play a significant role in product discovery. Over half of consumers use social media to find new products, compared to 32% in November 2022.

Advertising on retailer websites and apps is crucial. 67% of consumers notice ads while searching for products, influencing nearly one-third of online purchases. However, satisfaction with in-store advertisements lags behind due to a perceived lack of personalisation, leading retailers to focus on retail media networks to better capture consumer attention.