AI Wants To Help Us Shop. Are We Okay With That?

You’ve probably noticed the little elf helping you around retail stores this year. No, it’s not the teenager at the mall in red-and-white stockings with a felted green hat. It’s AI.

Log in to Amazon, and you’ll see suggested products like winter decorations, novels, or toy recommendations for kids. Add that remote-controlled car into your cart for your nephew, and you’ll also get recommendations for batteries and gift wrapping. This is no accident – generative AI uses your past purchases and recent searches to curate this personalized display. At the end of your shopping affair, you can share your experience, which will be data fodder for AI to learn and improve your next shopping venture.

One in six shoppers uses generative AI to inspire shopping decisions, according to a 2023 Salesforce survey. However, data by SAP Emarsys reports that barely more than half of consumers feel it positively impacts their online shopping experience. What is generative AI, and what does it mean for our holiday shopping and privacy?

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What Is Generative AI?

Generative AI takes data (provided by humans) to create something new, like music, text, images, or even personal shopping recommendations. Beyond simply following commands, generative AI can study existing data on the Internet to “think up” entirely new content.

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How AI Is Used To Shop

Imagine hiring a personal shopper who also happens to have your entire Internet shopping history – searches, views, shopping carts, purchases, and online interactions (including third-party data) – PLUS every product review and insight available online, handy in seconds. Thanks to this nearly endless supply of data, generative AI seeks to “help” consumers shop in multiple ways, including:

• Creating A (Creepily) Personalized Shopping Experience: Generative AI can curate personalized shopping lists or recommend products based on an individual’s preferences by analyzing past behaviors and predicting future interests.
• Providing Chatbots And Customer Support: Generative AI-driven chatbots can assist customers with queries, recommend products, or help troubleshoot problems, often more sophisticated and human-like than traditional chatbots.
• Improving Fraud Detection: AI can recognize and learn scammer behaviors using its predictive and deep learning capabilities. This helps payment platforms pinpoint problem purchases without impacting legitimate ones.

Cons And Privacy Concerns

AI is only as good as its data. It’s not perfect, and there are some ethical and privacy concerns to be aware of, like:

• Data Collection: Generative AI requires lots of data to offer a personalized experience. This could include shopping habits, product views, search queries, etc. The question is: How much data on consumers is too much, and where is it stored?
• Potential For Misuse: With the ability to generate realistic content, there is potential for misrepresentation or misuse, such as creating fake product reviews.

Implications For Business Owners: Opportunities And Responsibilities

There are several benefits for business owners who opt into AI to improve their customer’s experience. Personalized recommendations lead to more extended site visits and potentially higher conversion rates. Automation via AI can streamline operations, particularly in customer support and product visualization.

However, you also have a responsibility to your customer’s privacy. Businesses must ensure transparency about the data they collect and how they use it. This includes providing clear opt-in and opt-out options for consumers. Additionally, with the increased collection of consumer data, businesses have a heightened responsibility to protect that data from breaches and unauthorized access.

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Be A Smart AI Shopper

You must understand the terms of service and privacy policies of online platforms. Know what data you’re sharing and with whom. Periodically check and manage the data permissions you’ve granted to different e-commerce platforms, and always secure your accounts with multifactor authentication.

Enjoy the benefits of AI recommendations and diversify your information sources and shopping platforms. For example, you’ll want to verify AI-powered suggestions on other product review websites like Wirecutter or Consumer Reports.

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AI Chatbot Or No, Demand Excellent Customer Service

Even though a growing number of people are happy to interact with and benefit from generative AI, according to Salesforce, most people still expect excellent customer service (that’s human); as online platforms harness data to tailor experiences and predict behaviors, consumers should remember they can drive the standards. By voicing expectations and preferences, shoppers ensure that businesses prioritize genuine human interaction and responsiveness alongside their digital innovations. After all, even in a world dominated by algorithms, genuine customer service remains at the heart of a truly exceptional shopping experience!

December Book Review

Stories That Stick: How Storytelling Can Captivate Customers, Influence Audiences, And Transform Your Business

“People want a purpose. If you don’t give them one, they’ll make up their own. Tell your stories first, otherwise someone might tell them for you, and you might not like their version.”

– Kindra Hall

Whether at the dinner table, around the fireplace or while watching our favorite Netflix series, we all love a good story. In her book, Stories That Stick, Kindra Hall breaks down four types of storytelling and how businesses can use them to communicate better and drive more engagement. Although the book is written primarily for business owners and entrepreneurs, it’s easily applicable to HR and marketing leaders who want to get started on a path to more effective messaging.

Cartoon Of The Month

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