Key Takeaways:
- 51% of consumers are open to letting AI take over the entire shopping process, including making final purchases.
- Millennials are the most willing to let AI agents do their shopping, with nearly three in five saying they are ready for such a shift.
- Retailers are also open to agentic AI commerce, with 88% seeing it as a top strategic priority.
- OpenAI is introducing ads in its ChatGPT free tier and $8/month Go subscribers, with the goal of making ads relevant and valuable to users.
- Netflix is increasing its use of vertical video, including mobile-first soap opera-type content, and has signed deals for video versions of top podcasts.
Introduction to AI in Shopping
The 2025 holiday shopping season has shown that AI is playing a significant role in how people shop. New research from retail payment platform Adyen found that many consumers are ready for AI to become their personal shopper. Just over half of consumers, 51%, said they are open to letting AI take over the entire shopping process, including making final purchases. This trend is not limited to one age group, as millennials, Gen Xers, and Gen Zers are all open to AI-powered shopping. However, Baby Boomers are less likely to adopt this technology, with only a quarter of them willing to let AI take over their carts.
Consumer Concerns about AI Shopping
While many consumers are open to AI-powered shopping, there are still concerns about how well AI will perform the task at hand and how trustworthy the system is. Many consumers, 45%, want to know who would be accountable if AI purchased the wrong item or if the item had problems. Additionally, two out of five consumers want to know the AI assistant’s reasoning for selecting particular items. Data privacy is also a concern, with 42% of consumers worried about their personal data being used by AI. Furthermore, 43% of consumers are concerned about losing control over their shopping experience and prefer to do the browsing and decision-making themselves.
Retailer Perspective on AI Commerce
Retailers are also open to agentic AI commerce, with 88% seeing it as a top strategic priority. However, retailers are not necessarily ready to implement this technology blindly, and trust is a factor on their end as well. A total of 38% of retailers want to know they will see a clear return on investment before putting such a strategy into place, and the same amount are concerned about data security with a new commerce system being added. Carlo Bruno, VP of product at Adyen, noted that retailers are also concerned about AI taking away their personal connections with customers.
The Future of Advertising with AI
OpenAI is introducing ads in its ChatGPT free tier and $8/month Go subscribers, with the goal of making ads relevant and valuable to users. The company announced that ads would not influence the chatbot’s responses, and ads will be separate and clearly labeled. Individual ChatGPT conversations will not be shared with advertisers, and data to personalize ads can be kept private. This move is seen as a watershed moment in AI development, and it will be interesting to see how users respond to ads in their AI-powered conversations.
The Evolution of CPG Marketing
The consumer packaged goods (CPG) industry has been slow to adopt new marketing strategies, but technology is changing the game. Chris Riedy, chief revenue officer at Ibotta, discussed how technology is changing CPG marketing and what companies need to do to market to today’s consumer. Riedy noted that connecting digital promotions to actual physical sales in a store is inherently tricky, as CPG brands often sell to retailers, who then sell to consumers. However, technology can help bridge this gap and provide more precise measurements of the impact of marketing campaigns.
The Importance of Full-Funnel Marketing
Riedy emphasized the importance of full-funnel marketing, where brands think about driving awareness, consideration, and purchase together. This approach allows brands to break down silos and think about the consumer’s entire shopping journey, from awareness to purchase. By taking a full-funnel approach, brands can better quantify their impact and target consumers more effectively. Riedy also noted that CPG companies need to be willing to hire people with non-traditional backgrounds and experiment with new approaches to drive innovation.
Recent Developments in AI and Marketing
The fight over what’s appropriate for AI chatbots to do continued this week, with Elon Musk’s X announcing that its AI chatbot Grok could no longer create images of actual people in revealing clothing. Meanwhile, Netflix reported quarterly earnings, narrowly beating Wall Street estimates, and announced new initiatives, including increasing its use of vertical video and signing deals for video versions of top podcasts. The company also plans to increase its use of live events, including sporting events and "Netflix Houses" for in-person initiatives.
New Appointments and Promotions
In other news, ADT appointed Kim Miller as its new executive vice president and chief marketing & communications officer, while Panduit promoted Holly Garcia to the role of chief commercial officer. Manhattan Associates appointed Katie Foote as its new senior vice president and chief marketing officer. These appointments highlight the importance of marketing and communications in today’s business landscape.
Conclusion
In conclusion, AI is playing a significant role in the shopping experience, with many consumers open to letting AI take over the entire shopping process. However, there are still concerns about trust, data privacy, and accountability. Retailers are also open to agentic AI commerce, but need to see a clear return on investment and ensure data security. The future of advertising with AI is also evolving, with OpenAI introducing ads in its ChatGPT platform. The CPG industry is also changing, with technology allowing for more precise measurements of marketing campaigns and a full-funnel approach to marketing. As the marketing landscape continues to evolve, it’s essential for companies to stay ahead of the curve and adapt to changing consumer preferences and technologies.
