Gen Z and Millennials Embrace AI in Shopping: A PYMNTS Report

Despite lingering skepticism about the role of artificial intelligence (AI) in commerce, a recent PYMNTS Intelligence study suggests that young consumers are increasingly open to AI-driven shopping experiences, as reported in PYMNTS News.

The report, «AI-Enabled Payments Enhance Customer Options,» conducted in partnership with ACI Worldwide, surveyed a large sample of consumers to gauge their familiarity with and interest in AI technologies. The findings indicate that while only 44% of all respondents show some level of interest in integrating AI into their shopping habits, this figure jumps to 69% for Gen Z and 54% for millennials and bridge millennials.

Retailers, brands, and marketplaces are taking note of this trend, leveraging AI to enhance shopper engagement. Etsy, for instance, recently introduced Gift Mode, a feature that combines AI and human curation to help shoppers find suitable gifts. Similarly, retail giants like Amazon and Walmart are ramping up their use of AI to improve customer experiences.

Tamara Jarrar, founder and CEO of D2C children’s sleepwear brand Bellabu Bear, believes AI can significantly boost sales by making digital platforms more user-friendly. Jarrar points to AI-powered chat and recommendations as tools that can personalize the customer experience, making it easier for shoppers to find information and products tailored to their needs.

As AI continues to evolve, it is likely to play an increasingly prominent role in shaping the future of shopping, particularly for younger generations who are more receptive to its benefits.