Australia – More than 76% of Australians trust AI shopping recommendations as much as or more than advice from a retail sales assistant, according to research commissioned by Manhattan Associates.
The study found that 47% of Australians trust AI recommendations more than those from retail sales assistants, while 29% said they place about the same level of trust in both.
AI is also becoming an increasingly common starting point for researching major purchases. Nearly one in four Australians (23%) said they turn to AI first for information, compared with 7% who initially seek advice from an in-store sales assistant.
“Consumers are using AI for product discovery, to compare options and inform their purchasing choices. These are some of the many things they might previously have relied on a retail sales assistant for,” said Raghav Sibal, APAC Vice President at Manhattan Associates.
“This doesn’t make retail staff irrelevant, but it does change what customers expect from them. Shoppers might now arrive in-store already knowing which products they are considering, what alternatives are available and what they expect to pay. Retailers and their teams need to be ready to add value beyond information the customer can now find for themselves,” he continued.
The findings come as AI becomes more established in the shopping journey. More than four in five Australians (83%) have used an AI assistant such as ChatGPT, Gemini or Copilot for shopping research, with 36% saying they do so regularly.
Price and convenience are among the factors contributing to the adoption of AI for shopping research.
Separate research from PayPal found that price comparison is the most common way Australians use AI when shopping, with 57% of AI shoppers saying the technology helps them save money.
Manhattan Associates’ research found that 42% of respondents would choose AI over a retail sales assistant because it is available 24/7. Speed was cited by 20%, while 19% said they preferred AI because it made comparing products easier.
“AI can make it easier for consumers to reach a decision, but that puts more pressure on retailers to deliver when they move from research to purchase. Knowing a product exists isn’t good enough. Customers need to know whether it’s available, where it’s available, what it will cost and how quickly they can get it,” Sibal said.
Despite the growing use of AI, the research suggests consumers continue to value retailers’ own digital and physical channels.
Even if AI could accurately answer every product-related question, 84% of Australians said they would still be likely to visit a retailer’s website before purchasing, while 81% said they would still be likely to visit a physical store.
“AI can help a customer decide what they want, but it can’t compensate for a poor experience when they are ready to buy. If the price they find is different, the product isn’t available or the fulfilment options don’t meet their expectations, retailers still risk losing that customer at the point that matters most,” Sibal said.
“As AI becomes more influential earlier in the journey, retailers need to ensure they deliver a connected experience through to purchase. Consumers are arriving better informed and with clearer expectations, putting greater importance on the retailer’s ability to turn that intent into an accurate and reliable purchase and fulfilment experience,” he concluded.
