The annual global IBM consumer retail study, recently released in collaboration with National Retail Federation (NRF), indicates Canadians are moving from browsing to guided buying:
- Nearly half of Canadians (45%) use AI in their shopping journey (research, reviews, deals)
- AI app usage is up 82% in two years.
- Conversational commerce (chat/voice/messaging) is becoming a primary interface for discovery and purchase.
But trust is the new battleground:
- only 19% trust AI recommendations outright
- Canadians want AI agents that do the work like deal hunters, service agents, review guides, personal shoppers.
“Canadians aren’t just browsing. Nearly half now use AI during their shopping journey, and adoption of AI apps has surged 82% in two years. This isn’t just a tech trend. It’s a shift in how decisions are made. Retailers that embed trust and transparency into these experiences will turn convenience into confidence, and confidence into loyalty,” said Jayme Johnson, Partner & Industry Leader, IBM Consulting Canada.
Retailers and Brands quoted in the study:
Matthieu Houle, CIO at ALDO Group: “AI is turning shopping into a trusted conversation, much more than a search. Consumers now rely on assistants that feel almost human, know their preferences, and offer neutral, best-for-me advice that reshapes how they validate and decide what to buy.”
Byron Ells, Vice President, Marketing Technology and Digital Experience, Sobeys: “How do you make sure an agent is choosing your brand over another? What’s the role of the brand or retailer? These are interesting questions that we need to answer.”
Key Insights – Canadian data
- AI Adoption & Shopping Behaviors
- AI adoption in Canada is accelerating, with nearly half (45%) of consumers using AI in their shopping journey from researching products (42%) to finding deals (28%).
- Canadian use of AI apps surged 82% in two years, outpacing global growth (62%), signaling a rapid shift toward conversational commerce.
- Despite this digital shift, 82% of Canadians still shop in-store, highlighting a hybrid shopping model.
- Bottomline: AI is reshaping the shopping journey, guiding consumers as they research, discover and decide what to buy.
- Digital Retail Preferences
- Consumers want convenience and integration: 28% seek super apps combining commerce and services, 24% want smart-home shopping with AI personal shoppers and autonomous delivery, and 27% look for effortless social platform purchasing.
- While 40% value beautiful stores with no wait times, AI-powered solutions are nearly as important for Canadian shoppers.
- Trust & Data Sharing
- Trust remains critical: 52% of Canadians are comfortable sharing data, but concerns about privacy (45%), misuse (39%), and data resale (34%) persist.
- Only 19% trust AI recommendations outright, while 22% cross-reference sources and 14% validate social media content before making decisions.
- AI Agents Desired by Canadians
- AI agents are moving from concept to reality: Canadians want practical helpers—39% want a deal hunter, 33% a customer service agent, 27% a product review agent, and 23% a personal shopper.
“The interesting thing I’m seeing is consumer preferences of where they want AI to help them in the shopping journey. There are some obvious ones that we probably know and maybe even use ourselves around researching products, finding reviews, and finding a good deal,” explained Johnson.
“What’s interesting is some of the other areas that are lower in terms of a percentage right now, but I think show us where AI is going in terms of what customers want, and therefore what retailers are going to have to do to be able to interact not just with us as human consumers, but even to interact with AI as a shopping agent working on our behalf and maybe shopping without us intervening to make a decision, as long as it falls within the parameters we set out.”
Sharing data a key part of AI experience
Johnson said consumers must be okay to share their data which is a key part of the AI experience.
“Many Canadian consumers are comfortable sharing their data, but brands have to earn and keep our trust with that data. Many consumers are still worried about data privacy, security, that the data’s going to be misused or sold without their consent, or that they’re going to get unwanted ads or messages,” she said.
“So when organizations and retailers think about data and how to build that trust, there are elements of security and transparency. They need to look within their organization. They’ve got vast and varied data, often scattered across the enterprise, and they need to figure out how best to bring that together in a secure, compliant way where it’s governed across the enterprise—especially where you have sensitive customer information.
“Then, if you’re using AI and building and scaling AI that’s using that data, you and I as consumers need to have transparency into what was used and how it was used to generate the feedback, insight, or decision coming out of those AI models.”
Grocery sector leveraging digital channels
Johnson said she’s seeing differences across segments.
“Grocery, especially where you’ve got home delivery and capabilities through a mobile app or website, is leveraging digital channels that already exist to infuse AI, not only for the retailer, but for the shopper in that digital channel.
“But we see it across the spectrum . . . They’re all using it in different ways. I think it also comes down to brand authenticity. The experience of grocery is different than, say, a Canada Goose or a lululemon, or someone in apparel or fitness, or buying a car or appliances.
“They’re all leveraging it. Many are still experimenting, and I think that’s where we’re going to start to see more of a pivot to more robust, enterprise-wide, AI-first digital channels and AI models, versus experimenting here and there.
“At the end of the day, you can think of it like agents talking to agents. My personal shopping AI is going to work with my deal-hunter AI agent, which is connected into my purchasing agent, and all of these come together to orchestrate everything. This is where experimenting needs to evolve into more of an enterprise AI-first operating model. Part of that is starting to think about AI as a consumer segment. Just like they target you and me as humans, as AI agents start making decisions for us, retailers need to get product data, store data, and promotion data out to agents in a way that’s readable, understandable, digestible, and actionable so those agents can make decisions on our behalf.
“I think the trend we’re starting to see is more focus on a unique consumer segment and a unique entry point for commerce that’s machine and AI, not just the human side.”
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