April 28, 2025
Over half, 58%, of consumers have replaced traditional search engines with Gen AI tools when it comes to searching product and service recommendations. The statistic reflects a huge jump from just 25% in 2023.
The insight comes from the fourth edition of Capgemini Research Institute's annual consumer trends report, "What Matters to Today's Consumer," which also revealed two-thirds of Gen Z and millennials want hyper personalized content and product recommendations powered by Gen AI.
Poor customer experience and sustainability are the main reasons consumers switch brands or retailers, according to a press release on the study's findings.
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Nearly half (46%) of consumers are enthusiastic about the impact of Gen AI on their online shopping and three quarters are open to Gen AI recommendations, up from 63% in 2023.
Seven in 10 consumer products and retail companies view Gen AI as a transformative technology, a significant shift from last year.
Yet Gen AI usage is not meeting expectations. Consumer satisfaction with the technology is down from last year (at 37% in 2024 compared to 41% in 2023).
"Consumers today want personalized shopping experiences, enhanced by AI and generative AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact," Lindsey Mazza, global retail lead at Capgemini, said in the release. "To remain competitive and build brand loyalty, retailers must adopt strategies that put the consumer at the center, leveraging AI to deliver seamless yet exceptional customer interactions. The clear shift towards social commerce is also significant. Retailers need to capitalize on their social and digital advertising platforms to engage consumers early in the purchasing journey."