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Retailers must prepare for AI-driven shift in consumer behaviour: Accenture’s Fawad Baig

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In a climate of growing uncertainty, new research from Accenture reveals a surprising trend: Canadian consumers are forging deeper emotional connections and placing greater trust in generative AI. 

With 57% of Canadian consumers reporting unusually high levels of uncertainty in their daily lives, generative AI is emerging not just as a tool, but as a trusted companion helping consumers navigate the unknown.

Accenture’s latest Consumer Pulse survey explores how the adoption of AI is reinventing the consumer-brand relationship, influencing not just what people buy, but how they think, feel and engage.

KEY FINDINGS FOR CANADA:

A year ago, consumers were open to AI making purchases on their behalf. Today, they’re not just open – they’re emotionally invested, according to Accenture Consumer Pulse Survey 2025.  

  • One in three (33%) active gen AI users – defined as people using gen AI tools at least weekly for personal and/or professional reasons – think of gen AI as “a good friend.”;
  • The vast majority (92%) of active gen AI users have or would consider asking gen AI for help with personal development goals, and more than 14% of active users rank gen AI as their single-most trusted source of what to buy;
  • Generative AI (gen AI) is becoming a go-to for consumers in their daily lives. More than six in 10 (66%) consumers have used standalone gen AI tools such as ChatGPT and Claude, or engaged with gen AI through social media or search;
  • At the same time, uncertainty is the prevailing backdrop to consumers’ lives, with more than half of consumers (57%) report feeling unusually high levels of uncertainty, a sentiment that has doubled since last year (28% in Dec 2024);

 Despite the current economic challenges, retailers and brands that compete on experience and connection can drive growth. It pays off for brands that get this right.

  • Consumers are 1.6 times as engaged, 2.6 times as likely to recommend a brand online, and 1.9 times as likely to accept a higher price from a brand or retailer that provides emotionally engaging experiences;
  • More than one-third (35%) of consumers would switch from a preferred brand to one that makes them feel special;
  • Members of loyalty programs are more willing to share data and engage with personalized experiences; and 1.7 times as likely to help brands refine new products and services.
Fawad Baig
Fawad Baig

Retailers in Canada are entering a critical phase of transformation as artificial intelligence—particularly generative AI—reshapes how consumers make purchasing decisions, says Fawad Baig, Managing Director at Accenture.

In a recent interview, Baig, who also serves as Senior Client Executive and Retail Leader for Canada, shared key insights from a new consumer survey on AI’s growing role in retail.

“One of the major takeaways was the changing role of AI, specifically generative AI, in consumer behaviour and purchasing decisions,” said Baig. “We’re seeing AI show up in various forms from search tools to product companions and even as referral agents. Consumers are now engaging with virtual assistants that offer a more personal and dynamic experience than legacy search engines or apps have in the past.”

He said this signals a major shift in how people seek and process information during the buyer journey.

“There’s a significant shift in how consumers are making use of generative AI and AI, and the information that comes in terms of how they’re going to make purchase decisions,” he explained. “That was a stark contrast to previous conversations.”

When asked if younger generations are more likely to adopt AI than older ones, Baig said the technology’s simplicity helps bridge generational gaps.

“We were just discussing this with a client recently. Generative AI is actually quite simple to use, and that simplicity helps it transcend typical generational barriers. Anyone who consistently uses it can start to understand its power without needing to know what’s happening behind the scenes.”

While younger users may experiment more readily, Baig added that the technology is intuitive enough for most people to grasp.

Photo: Vlada Karpovich
Photo: Vlada Karpovich

“Yes, newer generations are likely more able to experiment and have the capacity to experiment a lot faster than perhaps older generations do. But that said, unless you’re completely new to the world of internet, I think the generative AI component of today’s AI actually bridges a lot of the gap for the user.”

He likened the current moment to past technological revolutions, noting that the shift doesn’t require users to understand the underlying complexity.

“Initial hesitation, as it may have been when the Industrial Revolution took place and cars came about, and then many years later the internet came about, and then within the internet, many years later, computing became cloud computing. There were significant jumps that people had to make. I think generative AI allows for a lot of that to become grayed out and not require the users to focus on that, while giving them the output they would simply get.”

On the retailer side, Baig emphasized the urgency of taking a proactive, foundational approach to AI integration.

“Retailers need to think holistically. First, they must evaluate how AI integrates across their existing channels whether in-store, on mobile, or online. Then, they need to assess how their digital footprint needs to evolve to leverage generative AI effectively.”

People, process, and technology all need to align, Baig stressed.

“Retailers have to prepare their workforce for ongoing change. The journey with AI is far from over. It’s only accelerating. The foundation must include investment in AI and strong practices around data and analytics. If decisions aren’t already being made based on data, that has to change immediately.”

He added that each new AI version brings greater capabilities, both for consumers and internal operations.

“Whether it’s cost takeout because things are going to be more efficient, or it’s completely changing the way their business processes are going to work tomorrow in terms of automation and intelligence that couldn’t exist before, it’s now going to be easily accessible.”

Photo: Andrea Piacquadio
Photo: Andrea Piacquadio

The impact on talent development may be profound, he noted, citing how traditional entry-level roles could be replaced by automation.

“For example, some entry-level analytical roles might be replaced by AI. Retailers will need to rethink how they hire and train, given that certain traditional career paths may change or disappear altogether.”

He concluded that success in this new landscape will depend less on the technology itself and more on how well retailers manage organizational change.

“It’s not about the technology. It’s absolutely about thinking through the people and process side of this equation more than it is. And I think that goes for companies across the spectrum of industries and specifically retailers as they’re on the front lines.”

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Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

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