Manila, Philippines — Nearly half of consumers surveyed globally (45%) now use artificial intelligence tools during their shopping journeys, even as 72% continue to make purchases in physical stores, according to a new study by the IBM Institute for Business Value in collaboration with the National Retail Federation.
The report, authored by Dee Waddell, global head of consumer, Travel & Transportation Industries at IBM, suggests that consumers are arriving in-store or online with more defined preferences, shaped in part by AI-driven recommendations and insights. Additionally, the study noted 41% of respondents use AI to research products, 33% to interpret reviews, and 31% to search for deals.
“AI is changing how consumers shop, and every aspect throughout the shopping journey,” said Caroline Reppert, senior director, 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,” added Caroline.
The study also highlights a shift from traditional browsing to what it describes as “guided buying”, with AI tools playing a more active role in product discovery and decision-making.
Matthieu Houle, CIO at ALDO Group, also shared, “AI 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.”
Despite continued interest in physical retail experiences, with 35% of respondents expressing a preference for visually appealing stores with no waiting times, digital expectations are evolving. Around one in three consumers surveyed also expressed interest in “super apps” that combine commerce with other services, while 30% indicated a preference for smart homes equipped with AI personal shoppers and autonomous delivery. A further 29% favoured streamlined purchasing through social platforms.
The report also notes that expectations for AI-powered assistance are developing more quickly than many retail operating models can adapt.
“AI is not a magic wand,” said Stanislas Vignon, head of insights (AI and Omnichannel) at LVMH. “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.”
Among brand executives surveyed, 54% reported ongoing challenges across channels and systems, highlighting issues around data alignment and operational integration. In addition, 51% cited limited AI expertise within their organisations.
Moreover, the study outlines several areas for retailers to consider as AI adoption grows, including redesigning customer journeys around AI-influenced decision points, integrating AI agents earlier in the purchasing process to reduce uncertainty, strengthening data readiness and testing processes, maintaining brand distinctiveness while using AI to scale relevance, and investing in AI skills and partnerships.
The findings suggest that as AI becomes more embedded in consumer decision-making, retailers that adapt their strategies accordingly may be better positioned to respond to changing expectations in both physical and digital environments.
