New research from Sitecore reveals a timely challenge: Gen Z expects brands to deliver increasingly sophisticated digital experiences, but they’re also quick to walk away when those experiences feel untrustworthy or inauthentic.
With Gen Z’s spending power projected to reach $12 trillion by 2030, says Sitecore, earning this generation’s trust isn’t just a holiday-season priority, it’s critical to building long-term customer relationships.
Sitecore’s inaugural Digital Authenticity Index surveyed 4,000+ consumers in the U.S., U.K., Australia and UAE. The findings from its Gen Z cohort (ages 18–29) offer a valuable blueprint for retailers looking to use AI without undermining the authenticity and trust that keep consumers engaged.
The takeaway for retailers: the brands that win with AI won’t necessarily be those using the most sophisticated technology. They’ll be the ones using AI to deliver what Gen Z values most: accurate, transparent and human digital experiences.
Here are some of the key findings among the Gen Z cohort:
- 83% believe AI can be beneficial when used responsibly.
- 80% say digital experiences are equally or more important than real-life experiences.
- 89% say brands need to do more to improve digital authenticity.
- Nearly 70% have reduced engagement, switched brands or stopped using a brand because a digital experience felt untrustworthy, inconsistent or inauthentic—the highest rate of any generation studied.
In an interview with Retail Insider, Sitecore CMO Michelle Boockoff-Bajdek discussed the report’s findings.
Question: What are the most effective ways retailers can use AI in holiday marketing while still making digital experiences feel authentic and human to Gen Z?
Answer: The first thing I’d say is: don’t use AI simply because you can. Use it because it makes the customer experience better. Sitecore’s Digital Authenticity Index (DAI) found that 83% of Gen Z consumers believe AI can be beneficial when used responsibly. But 74% also say they can spot AI-generated content. They may be open to AI, but they aren’t easily impressed by it.
During the holidays, retailers should use AI to solve real customer problems: helping someone find the right gift within a particular budget, surfacing relevant recommendations, keeping inventory and delivery information accurate, and answering routine questions quickly. Those are the moments when speed and relevance are genuinely useful.
Retailers get into trouble when they assume that because Gen Z is comfortable with AI, they want it everywhere. They don’t. The best AI experiences should feel less like “Look what our AI can do” and more like “That was actually helpful.” That matters even more during the holidays, when shoppers are under time pressure and one bad answer can mean a missed gift.
Q: What specific uses of AI are most likely to undermine Gen Z’s trust in a brand, and what are the biggest “trust killers” retailers should avoid?
A: The DAI’s findings give us a pretty clear answer. Gen Z’s three biggest digital trust killers are inaccurate or misleading information at 35%, no clear way to reach a human when needed at 34%, and overly automated or robotic interactions at 33%.
During the holidays, those failures have real consequences. An AI shopping assistant that gives the wrong inventory or delivery information could mean a missed gift. A chatbot that sends someone in circles only makes a stressful situation worse. And personalization that crosses the line from helpful to creepy can quickly make someone question how the brand is using their data.
The technology may be generating the answer, but the retailer still owns it. That means checking for accuracy, making the path to a person obvious, and knowing when AI is making the experience harder rather than easier.
Q: How should retailers balance AI-driven personalization with transparency, particularly when consumers may not know how or why AI is influencing the experience they receive?
A: I think this is where the distinction between personalized marketing and permissioned marketing comes in. Personalization says, “We know something about you.” Permissioned marketing says, “Here’s what we know about you, where and how we’re using it, and what you can do if you’re not comfortable with that.”
Transparency doesn’t require a lengthy explanation at every touchpoint. But if AI is influencing a recommendation, search result, or offer, the customer should be able to understand why. They should also be able to change their preferences, correct misinformation, or opt out.
That becomes especially important during the holidays because people are often shopping for someone else. A gift purchase doesn’t necessarily tell you anything about the buyer’s own interests. Anyone who has bought one gift and then been followed around the internet by similar recommendations for months knows how quickly personalization can get it wrong.
The goal is for customers to feel understood, not watched. Giving them clarity and control is what makes the difference.
Q: Given that nearly 70% of Gen Z respondents have reduced engagement or switched brands after an untrustworthy or inauthentic digital experience, what should retailers prioritize this holiday season to retain customers?
A: Actually, I’d start with the basics. Holiday shopping puts enormous pressure on every part of the customer experience, and it is often the simple, underinvested areas that do the most to earn trust—or erode it.
Is the inventory information accurate? Does the promotion still work at checkout? Is the delivery promise realistic? Is the return policy clear? And can the customer reach a person when something goes wrong?
Gen Z won’t separate a technical failure from the brand behind it. If an AI assistant says an item is available when it isn’t or promises delivery before the holidays when that is no longer possible, the retailer owns that experience.
Retailers also need to invest in service recovery. Make it easy to reach a person, give that person enough context to resolve the issue, and communicate quickly when a promise can’t be kept. Nothing makes a bad experience worse than forcing the customer to explain the same problem over and over again.
The brands that retain customers will be the ones that get those seemingly small moments right—especially when the pressure is on.
Q: Can you share examples of retail brands that are using AI successfully in their holiday marketing while maintaining authenticity and human support?
A: I really like Etsy’s Gift Mode, which combines AI with human curation to help shoppers find gifts. The technology helps narrow the choices, but Etsy keeps its sellers and the human stories behind their products at the center of the experience. During the holidays, it has also paired digital discovery with more accurate delivery dates, purchase protection, and additional customer support agents. That feels like a thoughtful division of labour. The technology helps with discovery, while people and clear policies provide reassurance when it matters.
Walmart has taken a similarly practical approach. It has used generative AI to help holiday shoppers search for gifts in natural language, compare products, summarize reviews, and get personalized ideas. Its customer support assistant can also help people find orders and manage returns.
What I like about these examples is that AI has a specific job. It’s not there simply to make the campaign look innovative. It helps the customer find something, make a decision, or solve a problem.
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