Cognizant, in collaboration with Oxford Economics, has unveiled new insights into how artificial intelligence (AI) is set to revolutionize the consumer purchasing journey by 2030 and drive significant economic impact.
The study, New Minds, New Markets shows that as income and purchasing power increases among 18 to 44-year-old AI enthusiasts, this demographic will command an estimated $4.4 trillion of AI-influenced consumer spending in the U.S. by 2030. In the U.K., this spending projection is estimated at $690 billion, in Australia it’s at $669 billion, and in Germany it’s at $539 billion.
The study also predicts that U.S. consumers who embrace AI could drive nearly half (46%) of spending by 2030. In Australia, this projection rises to 55% over the same period. In Germany it’s estimated at 46% and in the U.K., it’s at 39%.
“As AI-influenced buying evolves, businesses must navigate mixed consumer attitudes towards AI,” said Ravi Kumar S. CEO of Cognizant. “Enterprises are balancing the demand for convenience with the need for control and trust. Understanding these attitudes is crucial for developing AI solutions that not only enhance convenience but build confidence in the full potential of how AI can reimagine the customer experience and unlock tremendous value.”
Key findings from the study:
- Consumers are most comfortable using AI in the discovery phase of making a purchase decision (the Learn phase.) Across all consumer age groups, 47% cite they are comfortable using AI to help choose products and services. In this phase, AI-powered search tools, personalized recommendations and virtual assistants can be essential tools in the discovery and evaluation stages of consumer journeys. Technology companies are already building these capabilities into their consumer-facing toolsets, making it easier for consumers to use AI to gather information and shortlist options.
- During the decision-making phase (the Buy phase), consumers harbor more hesitation. In this phase, consumers share concerns around security and trust when it comes to using. The study showed 75% of consumers are unlikely to allow AI to automatically reorder or pay for high value items without their direct authorization. Additionally, only 16% of those who are 55 years and older are comfortable using AI during this phase (and only 33% are comfortable among the 18–44-year-old group.)
- Comfort levels begin to rebound in the post-sale engagement phase (the Use phase.) In this phase, consumers benefit from AI’s ability to help them tap into time savings and targeted services that add value to their after-purchase experience. Across all consumers, nearly a third (28%) said they are comfortable with AI reordering low-priced items. For example, smart HVAC systems could intelligently reorder air filters from the manufacturer directly, reducing the onus on consumers to identify the need for replacements themselves or reliance on local retailers to deliver supplies in a timely manner.
Related Retail Insider stories:
