SCAYLE’s study highlights rising discomfort with retail AI tools, as shoppers call for more meaningful uses like product discovery and service, not facial recognition or AI chatbots.
Consumer research released by SCAYLE reveals that 71% are uncomfortable with some of the AI tools retailers are using, and one in three are now putting prices before brand loyalty.
Key Findings:
- Only 18% are not uncomfortable with certain AI-driven features when shopping. Nearly one-third of consumers are uneasy with retailers’ use of facial recognition (32%), 30% with AI-created product images and models, and the same number with AI-powered customer service chatbots.
- Shoppers are open to the tech being used for customer service and product discovery. 25% rank customer service as the biggest positive effect of AI, while 19% say product discovery will be the top area for transformation.
Meanwhile, only 8% believe convenience, e.g., voice commerce or shopping assistants, will have the greatest impact on their buying experience.
- Product quality trumps all else for 53% of consumers, followed by price competitiveness (38%) and good customer service (31%). When it comes to loyalty programmes, 49% of consumers want to see regular discounts, and 36% want added incentives like free shipping, or buy now, pay later options, with 35% valuing loyalty programmes that are free of costs.
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“We know US retailers are facing a challenging landscape right now, with a turbulent economic climate reducing consumer purchasing power, and tariffs set to squeeze bottom lines even further,” said Daniel Fertig, Director Partnerships at SCAYLE.
“But our research shows that shoppers’ concerns go beyond just costs. Many retailers are betting big on emerging tech like AI to improve customer experience, so it’s interesting to hear that customers don’t feel this is currently paying off.”
“Brands need to continue investing in AI to get ahead – but it’s clear customers want to see it used for product discovery and improving customer service, rather than AI-generated images or chatbots.”
“The biggest takeaway is that – even during uncertain times – there are some immediate pain relievers for brands, like implementing AI solutions customers actually want, introducing incentive-driven loyalty programmes, and prioritising product quality.”
The research also finds that 76% of online shoppers are likely to abandon their carts when their preferred payment method isn’t available. Flexible payment options are no longer a ‘nice to have’ – they are an essential part of the shopping experience.
57% prefer a mix of both online and in-store shopping, with ‘buy online, pick up in-store’ (38%) and ‘buy online, return in-store’ (37%) ranking as the most valued omnichannel features.
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