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The annual global IBM<\/strong> consumer retail study, recently released in collaboration with National Retail Federation (NRF)<\/strong>, indicates Canadians are moving from browsing to guided buying:<\/p>\n But trust is the new battleground:\u00a0<\/strong><\/p>\n \u201cCanadians aren\u2019t just browsing. Nearly half now use AI during their shopping journey, and adoption of AI apps has surged 82% in two years. This isn\u2019t just a tech trend. It\u2019s 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,\u201d said Jayme Johnson, Partner & Industry Leader, IBM Consulting Canada.<\/strong><\/p>\n Retailers and Brands quoted in the study:\u00a0<\/strong><\/p>\n Matthieu Houle, CIO at ALDO Group<\/strong>: \u201cAI 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.\u201d<\/p>\n Byron Ells, Vice President, Marketing Technology and Digital Experience, Sobeys<\/strong>: <\/strong>\u201cHow do you make sure an agent is choosing your brand over another? What\u2019s the role of the brand or retailer? These are interesting questions that we need to answer.\u201d \u00a0<\/strong><\/p>\n Key Insights \u2013 Canadian data\u00a0<\/strong><\/p>\n \u201c<\/strong>The interesting thing I\u2019m 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,\u201d explained Johnson.<\/p>\n \u201cWhat\u2019s 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.\u201d<\/p>\n Sharing data a key part of AI experience<\/strong><\/p>\n Johnson said consumers must be okay to share their data which is a key part of the AI experience.<\/p>\n \u201c<\/strong>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\u2019s going to be misused or sold without their consent, or that they\u2019re going to get unwanted ads or messages,\u201d she said.<\/p>\n \u201cSo 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\u2019ve 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\u2019s governed across the enterprise\u2014especially where you have sensitive customer information.<\/p>\n \u201cThen, if you\u2019re using AI and building and scaling AI that\u2019s 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.\u201d<\/p>\n Grocery sector leveraging digital channels<\/strong><\/p>\n Johnson said she\u2019s seeing differences across segments.\u00a0<\/p>\n \u201cGrocery, especially where you\u2019ve 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.<\/p>\n \u201cBut we see it across the spectrum . . . They\u2019re 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.<\/p>\n \u201cThey\u2019re all leveraging it. Many are still experimenting, and I think that\u2019s where we\u2019re 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.<\/p>\n \u201cAt 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\u2019s readable, understandable, digestible, and actionable so those agents can make decisions on our behalf.<\/p>\n \u201cI think the trend we\u2019re starting to see is more focus on a unique consumer segment and a unique entry point for commerce that\u2019s machine and AI, not just the human side.\u201d<\/p>\n More from Retail Insider:<\/p>\n<\/div>\n\n
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