Generative artificial intelligence (AI) is expected to play an increasingly significant role in consumer purchasing, evolving from a tool used for product discovery and research to one capable of completing transactions on behalf of shoppers, according to a report by McKinsey.
The report said advances in AI technology, coupled with persistent consumer focus on value and affordability, are reshaping how people discover products, make purchasing decisions and spend their money.
“Rapidly evolving AI models have begun to shape how people shop,” the report noted, adding that younger consumers, particularly Generation Z, are leading this shift.
McKinsey described the growing influence of AI-powered tools, social media and digital platforms on shopping behaviour as a “new tech-driven path to purchase.”
According to the consumer survey, social media is becoming increasingly relevant across every stage of the purchasing journey and has emerged as the most important channel for Gen Z consumers.
The report found that 28 per cent of Gen Z consumers already use generative AI tools for shopping, compared with 16 per cent of baby boomers. It also noted that 60 per cent of Gen Z respondents regularly use AI-generated overviews displayed on traditional search platforms, compared with 29 per cent of baby boomers.
While social media and AI tools continue to gain influence, consumer trust remains a key factor in their wider adoption. The report observed that Gen Z consumers report lower levels of trust in these platforms than baby boomers.
At the same time, traditional search remains an important component of online shopping despite changing user behaviour. The report said overall web traffic has declined by 8 per cent since 2023, but search activity continues to grow, even as the number of searches per user falls.
“As AI-generated summaries and conversational interfaces evolve, the experience of using a search platform is changing rapidly,” the report said.
The study also highlighted how major technology, retail and payments companies are preparing for the next phase of digital commerce. Companies including Shopify, Amazon and Walmart are increasingly aligning around common standards for AI-enabled transactions, creating the foundation for AI agents to compare products, apply loyalty benefits and complete purchases across multiple retailers.
As a result, generative AI is expected to become more widely used during the final stage of the consumer decision-making process.
“Gen AI tools will become more widely used in the last stage of the consumer decision journey: completing purchases,” the report said.
McKinsey noted that the rise of AI-enabled purchasing, often referred to as “agentic commerce,” could create a “dual front door” for consumers, allowing them to complete transactions either through retailer-operated AI systems or directly within generative AI platforms.
(With inputs from ANI)
