Skip to content

Artificial Intelligence surpasses search engines as shopping advisors

Shop for products online, compare prices, and read reviews, tasks traditionally performed by using a search engine.

Artificial Intelligence Emerges as Preferred Shopping Advisors, Overtaking Search Engines
Artificial Intelligence Emerges as Preferred Shopping Advisors, Overtaking Search Engines

Artificial Intelligence surpasses search engines as shopping advisors

In the ever-evolving digital landscape, Artificial Intelligence (AI) is making significant strides in reshaping online shopping experiences across Europe, particularly in Germany. According to a study commissioned by Verdane, an investment company, AI usage in online shopping is on the rise, with personalization at scale, automation, and seamless customer experiences becoming key trends.

The study, conducted by Norstat, included a total of 7,282 participants aged 18 to 60 from Germany, the UK, Sweden, Norway, Denmark, and Finland. Among the findings, it was revealed that the highest AI usage in online shopping is for travel with 33 percent, followed by travel and tourism, software or digital subscriptions, consumer electronics, and DIY products and hobbies.

One of the most striking findings is the shift towards AI in Germany, where nearly half of AI users seek shopping advice from tools like ChatGPT instead of search engines. This trend is further reinforced by the fact that 86% of ChatGPT users in Germany regularly use the AI chatbot. Microsoft Copilot is also gaining popularity, with 20% of AI users using it regularly.

The study also highlights the growing role of AI in purchase-decision support, with over half (53%) of consumers planning to use AI tools to support purchase decisions in 2025. This strong user acceptance of AI as an integral shopping assistant underscores its potential to revolutionize online shopping.

In addition to personalized customer engagement, frictionless checkout, and shift from pull to push shopping, the study also emphasizes the growth of AI in augmented reality (AR) integration. In Germany and Europe, AR tools allow 32% of online buyers to test products virtually, enhancing buying confidence especially in sectors like furniture, fashion, and cosmetics.

The implications of these trends are far-reaching for various stakeholders. Search engine providers must optimize for AI shopping agents that prioritize structured data and relevance over flashy UX. Manufacturers need to leverage AI to predict bestsellers and optimize inventory, while providing rich structured product data to maintain visibility in AI-driven marketplaces. Retailers, on the other hand, stand to benefit from AI for hyper-personalized marketing, unified commerce insights, frictionless checkout, and automation of customer service.

As AI continues to transform online shopping, it's clear that adapting to these changes is a significant challenge for manufacturers and retailers to maintain visibility. However, the potential rewards—stronger consumer trust, increased efficiency, and a more personalized shopping experience—make the investment in AI infrastructure worthwhile.

References: [1] Sephora's AI-Powered Recommendation Engines: Driving Personalization in Retail. (2021). Forbes. [2] Temu's AI-Powered Expansion: European Markets Show Robust E-Commerce Growth. (2022). TechCrunch. [3] The State of AI in Europe: 2021 Report. (2021). Element AI. [4] AI in Online Shopping: A European Perspective. (2023). Verdane. [5] The Future of E-Commerce: AI, Automation, and the Consumer. (2022). McKinsey & Company.

Technology and artificial intelligence are playing crucial roles in shaping the future of online shopping, particularly in Europe. In Germany, for instance, nearly half of AI users seek shopping advice from AI chatbots like ChatGPT instead of search engines, and 86% of ChatGPT users in Germany regularly use the AI chatbot.

Read also:

    Latest