The train has left the station in terms of consumer acceptance of data use for promotional marketing. Brand and retailer caution is well within the realm of acceptable behaviour generally, but retailers have to be diligent about hacking and data theft, which consumers can be justified in being concerned over. My Christmas wish is that no retailer suffer data losses as this erodes overall consumer confidence in technology-enabled commerce.

If consumers do not see a real value in using AI and know where their data is going with an assurance of privacy, it will not take off. Whether or not people understood how to use email, texting or sending pictures, they figured out how to do it because they wanted to use it. The same will be true with AI. They will have to want to use it. Before using it, they are likely to question privacy.

These kinds of studies are silly. First of all, “stated” preference studies for shopping behaviors are almost always wrong, as most shopping decisions are made continuously. For example, Admaster does a poll of Chinese shoppers before Singles Day every year. Per the “stated” preference survey 84 percent of shoppers planned to shop on Singles Day in 2015, only 71 percent in 2016 and only 64 percent in 2017, so Singles Day should be shrinking every year. Yet Singles Day grossed $14.3 billion in 2015, $17.8 billion in 2016 and $25.4 billion in 2017. Even worse, in this case the study asks consumers to evaluate a tactic they can’t even see/experience/consume. How does a consumer know if the great outfit in their latest Stitch Fix box is the result of a stylist that really knows her or an AI algorithm? Lastly, the definition of AI is constantly evolving. Aren’t all the suggested products on the Amazon and Tmall PDPs actually generated by AI? AI, and more specifically deep learning, is a game-changing capability for commerce. But… Read more »

AI is a technology and, as is the case with all technologies, should be implemented as an enabling vehicle — not as an end in itself. While privacy should always be respected, the focus should be on providing the shopper with the most valued and frictionless shopping journey — period. If AI can facilitate that then all of the secondary issues, concerns and challenges will melt away.

Assuming the retailers and brands who can afford to invest in AI will be the same that want to go global then, with the recent change in EU law, they will have little choice. While the change in EU law may not be relevant to some, no developed nation seems to be easing off on the use of personal data so brands and retailers have to put in the effort to protect consumers.

Consumers like retailers and brands are new to AI. Educating in the art of the possible with AI is a key part of any development in this area. Most of the tasks listed that consumers do are the very tasks shown in ads and introductory videos. Providers need to take them on the journey of learning this new capability.

We have had privacy concerns every time some new technology came to be. Each time we voiced and wrote our concerns. And each time we have become comfortable using the new technology. AI will be the same. Maybe we will continue with our concerns for another year; but after that we will get more comfortable with less worries about privacy.

While the Integer survey noted protecting personal information was the #1 preference for AI among shoppers, making things easier and lowering cost were #2 and #3. AI that keeps the user in control is most likely to be successful. This means:

1. Involve user in decisions, especially unplanned purchases. Chatbots, preferred by millennials to human agents, help in travel, fashion and beauty.
2. Help shoppers save money. Pricebots make shoppers feel smart, and they don’t necessarily lower prices, according to the Economist magazine
3. Don’t be a black box. Allow users to add, edit, delete what info is collected about them

As much as users say what they think about AI today, expect attitudes to change as retailers inevitably adopt more of it and shoppers realize it’s opt-out rather than opt-in.

Let’s face it, most consumers are benefiting from AI today, but they may not call it that or understand that is what is powering an aspect of their shopping. As long as AI offers value and builds trust with consumers, most will appreciate better selection, easier shopping and helpful advice.

Surveys that ask shoppers if they’re willing to share personal data invariably show that few shoppers are willing. However, reality shows that if the right, compelling offer is presented to the shopper, they’ll give up most anything to get a good deal.

As more and more retailers employ true AI in their shopping experience, more shoppers will get comfortable with it. AI is only as good as the info it’s fed, so the more shoppers who use it, the better it becomes, and the self-fulfilling prophecy of ubiquitous adoption will ensue.

Consumer adoption of new things is a value exchange. As soon as the value proposition is right for a critical number of people it starts driving a culture shift. Privacy is cost of entry these days for everything and needs to be in place. Retailers should focus on the key drivers of broader adoption: usefulness, effectiveness and making sure consumers understand how it all works.

Consumers don’t need to know whether AI is behind their shopping experience or not. What they need to see and feel is convenience, understanding of context, and assistance. These will be brand differentiaters for retailers.

For example, I was recently shopping for wheels for my car. After a few clicks an AI system with picture and attribute recognition should have been able to determine the style and size I was looking for, and the many, many styles and sizes I was not.

If a website had this technology, and quickly began filtering my search for me, presenting me with choices consistent with my needs and preferences, it would have saved me time and demonstrated intelligent, personalized understanding of my needs. This benefit would have been noticed and appreciated, increasing the odds of conversion, and fostering loyalty.

AI processes the same data currently collected by retailers like consumer demographics, purchase history, and various inferred user behavior data, etc., to offer up “AI” recommendations. Same as current and past shopping applications apply the same collected consumer data through older systems of collaborative filtering, segmentation, inferred behavior, etc. AI cannot be “spurred to be adopted” just because it is AI. AI is not for the consumer to decide. It is the retailer who must invest time and expertise in understanding how they design and build an AI system to maximize the value for each of their individual customers, based on the retailers’ brand, business model, and products they sell. Knowing this, the developers writing the code for an AI application MUST know exactly the outcomes the retailer is seeking. In coding an AI solution, by virtue of being coded by a human, subjectivity is introduced [for shopping]. Each retailer must spend the time and resources to ensure the code in their AI solution is relevant to their customer, brand and product lines. The question… Read more »

The first part of the question seems out of place. Retailers should not be spending any time trying to spur mainstream adoption of AI for shopping. They should be focused 100% of their efforts on solving consumer needs and if AI can help (which I believe it does and will even more in the future), then they should test and find best uses of it. We are just at the start of the voice era. It took e-commerce a solid decade for any real adoption. Like e-commerce, it will start slowly with minimal use and adoption but as it gets better and when it solves a need more efficiently or with better results, we will use it more and more and it will, by the nature of the increased use and AI, get better over time.

Transparency is crucial to any AI effort by retailers or brands. The minute shoppers think you’re trying to pull a fast one with their personal data, trust starts to erode. Conversely, if you’re upfront with the customer and present offers that help them shop better – that could mean price, value, assortment, service and more, depending on the individual or segment – then you can quickly build trust. Bottom line is adhere to the Golden Rule and you likely won’t go wrong.

I’m not surprised by the lack of understanding of AI, or the caution people feel. I think it’s really easy to forget that clothes shopping is a very personal experience, often driven by quite strong emotions. While customers are happy to shop online, and value the convenience, it still doesn’t compare with the all-round sensory experience you get when shopping in a physical store in the high street. Many people still hanker for the intimacy of the physical store, and in fact many are just browsing online before they go to the stores in person. I think that’s part of the reason why people don’t fully engage with retail AI – they are happy to use it for practical, functional tasks but they don’t really trust it. They still equate AI with a faceless machine or megacorporation that doesn’t have their best interests at heart. If retailers want to improve engagement with AI they need to ensure customers see it as more human than machine – and that goes for every industry hoping to disrupt… Read more »