A new survey has revealed that 91% of retailers in Australia and New Zealand are investing in generative artificial intelligence (AI).
The survey comes from a joint ‘Connected Shoppers Report’ between the Australian Retailers Association (ARA) and global software company Salesforce.
Both parties claim that the report shows the industry is already adapting to meet the evolving wants and needs of consumers.
Retail stores now more than ever function as e-commerce fulfillment centres, according to the report, with many ANZ retailers offering services like buy-online-pickup-in-store (47%) and ship-from-store (63%).
Nearly a quarter (24%) of store associates in ANZ are using mobile devices to complete tasks away from the register.
On the consumer side, 52% of shoppers in the millennial generation are interested in using generative AI-led shopping technology to source gift ideas.
Overall, 31% of all ANZ shoppers admitted they’d be interested in using the technology to get inspiration for product purchases.
Meanwhile, a majority 53% of ANZ shoppers report purchasing on social media — up from 6% in 2021. ARA and Salesforce noted this is part of the shift to digital shopping channels, with an estimated 42% of transactions occuring over digital channels in 2023, a figure expected to rise to 49% in 2025.
The report also found that ANZ shoppers belong to an average of almost 4 (3.94) loyalty programs — down from 4.08 in 2021.
Two-thirds (67%) of ANZ retailers offer such programs, the report found, which added that relatively few retailers have expanded beyond tried-and-true points-based schemes, leaving possible opportunities to expand into newer models such as tiered or coalition programs.
“High-tech and high-touch are becoming vital tools to entice the modern shopper,” ARA CEO Paul Zahra said.
“Today’s customers want it all – a tailored, fast, frictionless shopping experience – and artificial intelligence tools certainly have the potential to improve that experience.”
Zahra said there is already an uptake of interactive technologies - such as the virtual fitting room - in overseas markets, and that this will solidify in the Australian retail market soon.
“Social media has become an intrinsic part of the shopping experience,” Zahra said. “Retailers who use social media in their broader marketing strategies will be best placed to succeed.
“Likewise, with loyalty and rewards programs. Advancing these incentives is critical to entice and retain customers amid the cost-of-living crisis.”