Artificial intelligence is rapidly changing how Canadians discover products, evaluate options, and make purchase decisions, according to new research presented during a recent webinar hosted by the Retail Council of Canada and Environics Analytics. The session explored how AI is already embedded across the AI consumer shopping journey, with nearly half of Canadian shoppers now using AI tools at some stage of the process.
Presenters emphasized that AI is actively influencing how consumers search, compare, and buy products today. The research suggests that retailers are entering a period where expectations are being reset by technology-enabled shoppers, particularly younger and more digitally fluent households.
AI Already Embedded Across the Shopping Journey
The presentation highlighted that AI is now present in multiple stages of the AI consumer shopping journey, from early inspiration to final purchase. According to the data, 42 per cent of consumers use AI to understand product features, compare specifications, and synthesize reviews before buying. Another 28 per cent rely on AI-powered tools to track discounts, compare offers, and identify the best prices.
This marks a shift away from the traditional linear purchase funnel. Consumers are increasingly moving in a loop where inspiration feeds research, research feeds new inspiration, and AI tools sit at the centre of that process.
Presenters also noted that AI is moving beyond traditional shopping tasks. Consumers are using it to plan meals, manage budgets, organize travel, and support health goals. As a result, retailers are no longer competing solely within product categories. They are competing for attention inside broader daily routines shaped by AI-assisted decision making.
Adoption Led by Younger, Urban, and Diverse Households
AI adoption is not evenly distributed across the population. The research shows that early adopters tend to be younger, more diverse, and concentrated in urban or suburban environments. Many are singles, couples, or diverse families who use AI to save time, manage budgets, and create more personalized experiences.
Three consumer groups were identified as leading adoption.
The first group, described as suburban sophisticates, includes higher-income, diverse households motivated by technology and aesthetics. These consumers use AI to visualize outcomes and make confident decisions around higher-value purchases, particularly in the home.
The second group, multi-generational families, uses AI primarily to find value. These households rely on AI tools to compare grocery prices, identify deals, and stretch budgets across larger families.
The third group, younger urbanites, integrates AI into everyday life. These consumers use AI for inspiration, product discovery, and decision support, shaping expectations around speed, personalization, and relevance.
Wealth and Spending Power Shifting Toward AI-Fluent Generations
The research also highlighted a demographic and economic shift that reinforces the importance of AI-driven behaviours. While baby boomers still hold a large share of national wealth, their share is declining. At the same time, Gen X, millennials, and Gen Z are gaining both wealth and spending power.
Gen X has already overtaken boomers in total consumption spending, and younger generations continue to increase their share of discretionary spending. These groups are also more comfortable using AI to research, compare, and validate purchases.
This combination of shifting wealth and changing behaviour suggests that AI-driven expectations will increasingly define the mainstream retail experience in the coming years.
Hybrid Model Emerges as Stores Remain Central
Despite rapid digital adoption, physical retail continues to dominate the final transaction. More than 80 per cent of consumers still complete purchases in store, even as AI-assisted research becomes more common.
This creates a hybrid model where AI-enhanced digital discovery shapes in-store decisions. Consumers increasingly arrive at stores with more information, clearer preferences, and stronger expectations for personalization and service.
Personalization Gap Remains Significant
One of the most striking findings from the research is the gap between consumer expectations and actual experiences.
According to the data, 71 per cent of Canadian consumers expect retailers to anticipate their needs through relevant, tailored interactions. However, only about 20 per cent feel they currently receive that level of personalization. Just nine per cent are willing to pay extra for it.
This indicates that personalization is no longer a premium feature. It has become a baseline expectation for the AI consumer shopping journey, and retailers that fail to deliver it risk losing relevance with key customer segments.
What Canadians Actually Want from AI
While the technology continues to evolve, the research suggests that Canadian consumers are looking for practical benefits rather than novelty.
The most desired uses of AI include help finding better prices, providing more effective customer service, and tools that simplify decision-making. Consumers also want AI to synthesize reviews, identify trustworthy information, and deliver curated product recommendations.
In many cases, AI is replacing premium services such as personal styling or product advice, making those experiences accessible to a wider audience.
Loyalty and Trust Still Critical
Even as AI adoption grows, loyalty dynamics are changing. Younger, AI-forward consumers are less brand loyal than older segments, but they are more likely to engage with retailers that offer personalized experiences through loyalty programs.
At the same time, privacy concerns remain a barrier. More than 30 per cent of Canadians express concerns about data protection, and a larger share worries about misuse of personal information. This creates a delicate balance for retailers, who must deliver personalization while maintaining trust.
Retailers Enter a New Competitive Landscape
The overall message from the webinar was clear. AI is not just changing how businesses operate. It is fundamentally reshaping how consumers behave.
As younger, tech-forward households gain more spending power, their expectations around speed, relevance, and personalization will increasingly define the retail landscape. Retailers that adapt to this AI consumer shopping journey will be better positioned to connect with emerging customer segments, while those that lag risk losing relevance in an increasingly personalized and AI-driven market.
