ARMONK, N.Y. – Generative AI is reshaping the first steps of customers’ shopping experiences before they ever click “buy.” 

From hyper-personalized suggestions to curated inspiration, influence now begins long before a store visit or app tap, moving where brands and retailers compete to an entirely new level.

A new study from the IBM Institute for Business Value, in collaboration with the National Retail Federation, found that while nearly three-quarters of surveyed consumers (72%) still shop in stores, almost half (45%) turn to AI for help during their buying journeys. Shoppers still want to see and touch products, but today’s savvy consumers increasingly arrive with a sense of what they’re looking for and why. They are using AI to research products (41%), interpret reviews (33%) and hunt for deals (31%).

“AI is changing how consumers shop and every aspect throughout the shopping journey,” said Caroline Reppert, senior director of AI and technology policy at the National Retail Federation. “As these technologies increasingly guide consumer discovery, comparison and choice, retailers that understand and respond to this shift will be best positioned to earn trust, relevance and long-term customer loyalty.”

For leading brands and retailers, this shift toward AI-shaped discovery is prompting a rethink of how and where they engage consumers.

“AI is turning shopping into a trusted conversation, much more than a search,” said Matthieu Houle, CIO at ALDO Group. “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.”

While 35% of surveyed consumers still desire visually appealing stores with no wait times, AI-powered solutions are nearly as important. In fact, 1 in 3 consumers seek super apps that combine commerce with other services; 30% want smart homes with AI personal shoppers and autonomous delivery; and 29% look for effortless purchasing through social platforms.

Consumers are growing increasingly accustomed to AI-powered shopping assistants helping them decide what to buy. That expectation, however, is forming faster than most retail operating models can keep pace, forcing the question: Is our data ready to guide and validate what customers ultimately choose?

“AI is not a magic wand,” said Stanislas Vignon, head of insights at Louis Vuitton Moët Hennessy. “If you don’t have the right data, it doesn’t work. And you must test your solution to know whether it works and where it will bring value.”

As AI transforms how consumers make choices, brands and retailers need to anticipate change and intentionally design experiences that meet shoppers where they are, with focus on:

  • Redesigning the journey around future decision moments: Identify where consumers will use AI to research, compare and look for value, and ensure those moments connect seamlessly to purchase.
  • Using agents to reduce uncertainty earlier in the journey: Put deal-hunting, review interpretation and personal shopping support where it will help consumers decide, not only where it deflects service volume.
  • Making data readiness and testing nonnegotiable: With more than half of surveyed brand executives (54%) reporting persistent challenges across channels and systems, aligning product and policy truth and testing end-to-end is essential.
  • Amplifying what makes the brand distinctive: Use AI to scale relevance and remove friction while preserving creativity and authentic brand expression.
  • Investing in AI skills and partnerships: More than half of executives (51%) cite limited AI expertise, underscoring the need to strengthen internal capabilities while partnering strategically to scale AI responsibly and effectively.

The full study is available HERE.

Pictured at top: Image via IBM.com.