Over Half of Shoppers Seek AI-Powered, Personalized Retail Experiences

A new report from PYMNTS Intelligence reveals that consumer expectations are shifting, with over half of shoppers now seeking AI-driven features that enhance convenience, customization, and efficiency in their shopping experiences. Retailers are responding by integrating artificial intelligence (AI) into various stages of the customer journey—from personalized recommendations to virtual try-ons and voice shopping—to build loyalty and drive growth.

Growing Interest in AI Shopping Among Younger and Higher-Income Consumers

The demand for AI-enhanced retail is particularly strong among higher-income and younger shoppers:

• 51% of consumers overall are interested in AI-powered shopping.

• 59% of shoppers with incomes over $100,000 are drawn to AI-driven retail, compared to 40% of those earning less than $50,000.

• 73% of Gen Z and 74% of zillennials (ages 26-41) express interest in AI-enhanced shopping.

Retailers Embracing AI to Meet Consumer Demand

To meet rising demand, retailers like Amazon, Walmart and Best Buy are enhancing search functions, adding personalized promotions, and introducing AI-powered order tracking. As AI becomes more commonplace, shoppers are beginning to expect these high-tech features rather than seeing them as a novelty.

Amazon is enhancing personalized shopping through AI-driven features like Rufus, a conversational assistant that answers product queries and offers tailored recommendations. Additionally, Amazon's AI Shopping Guides consolidate product information to help customers make informed decisions.

Personalized Offers and Product Customization

The most popular AI feature among consumers is personalized shopping:

• 25% of consumers want tailored promotions or deals, especially Gen Z and millennials, with 33% seeking personalized offers.

• 18% of shoppers want AI to provide customized products based on their preferences or budget, with particular interest among younger shoppers (29% of Gen Z).

Retailers are responding to this preference for personalization. For example, Kroger uses tailored deals to boost loyalty, while Macy’s invests in targeted offers to improve customer satisfaction.

Voice AI Usage on the Rise, But Full Adoption Still Lagging

Voice AI is emerging as an important part of the shopping experience, with 27% of consumers having used voice commands for shopping in the past year. Interest is especially strong among high-income and younger shoppers:

42% of Gen Z and nearly a third of those earning over $100,000 annually have used voice prompts to assist with shopping.

However, voice technology is still evolving. Only 6.9% of consumers use voice AI for the entire shopping process, from browsing to checkout. While adoption is growing, most consumers still rely on other devices alongside voice commands, indicating room for growth in voice commerce.

Looking Ahead

As AI-driven experiences become central to retail, companies integrating these tools are poised to lead the industry’s evolution. From personalization to voice-enabled shopping, retailers that embrace AI can deepen customer loyalty, enhance convenience, and shape the future of shopping in a tech-driven world. These innovations are setting a new standard, making personalized experiences a core expectation. As more companies adopt AI, the industry is likely to see a rise in convenience, loyalty, and competitive differentiation.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.