Generative AI (GenAI) is reshaping online purchasing. More than half of shoppers rely on the technology, rather than traditional search engines, for product recommendations. As a result, web browsers are becoming less important in online shopping. Shoppers prefer AI-powered platforms that can aggregate information from search engines, social media and retailer websites into a single, convenient interface for discovering products. As many as 71 per cent of consumers want GenAI integrated with their buying journey, according to the Capgemini Research Institute.
As a result, AI has become a bridge for consumers and producers to understand each other better. Consumers use the technology to select and purchase products and services. It helps them get feedback from other users, rather than depending on product information alone. It also allows consumers to experiment with new brands and products. On the other side, a company that dominates advertising and opinion has to compete with smaller brands that show up with AI-based discovery.
Producers and service providers are keen to use AI for influencing consumers. GenAI tools allow small producers to create consumer engagement at a fraction of the budget required by large brands. As this AI shift continues, understanding consumer behaviour has become even more critical. Brands are increasingly turning to AI-powered technologies to gain deeper insights and improve marketing.
AI also enables dynamic ad personalisation, adjusting content in real time based on individual preferences. For example, someone searching for running shoes will see different ads than someone browsing for backpacks, increasing relevance and engagement. GenAI further supports marketers by automatically creating from copy, visuals and variations, allowing for faster production and reducing creative fatigue.
Programmatic advertising uses AI to automate ad buying and placement in real time, ensuring that ads reach the right audience at the optimal moment. Automated A/B testing allows advertisers to quickly examine different variations of a campaign, analyse results and implement improvements. Meanwhile, continuous performance tracking provides real-time insights, enabling brands to adjust strategies and budgets to maximise return on investment.
Despite such advantages, brands have to be cautious as consumers increasingly demand transparency. A recent YouGov and Meltwater report, titled “Trust in the Age of Generative AI”, highlighted how AI-generated content shapes consumer trust. As many as 86 per cent of consumers believe AI-generated content should be disclosed clearly, according to the report, which surveyed people in multiple countries.
Perceptions are mixed: 32 per cent of respondents said they would trust brands less if their content were AI-generated, while 15 per cent would trust them more. This underscores the importance of how brands use and communicate AI. Additionally, many consumers believe they can recognise AI-generated content, while concerns about misinformation remain high.
“The rise of AI in consumer insights presents a dual-edged opportunity. It enhances data processing and pattern recognition, enabling faster decision-making. However, the challenge lies in ensuring that human influence and strategic thinking remain central, preventing insights professionals from becoming sidelined in the decision-making process. Balancing technology with human insight is crucial,” said Liubov Ruchinskaya, founder of Insights Lighthouse, a Zurich-based global body of insight leaders.
The consumer-producer connection with AI as a bridge will be a fast-changing relationship with each tracking the other simultaneously.
The writer is an economic analyst and author
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