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AI Search

Generative AI enters ‘recommendation era’ as search falls to the wayside

By Advanced AI EditorJuly 1, 2007No Comments3 Mins Read
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This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter.

More than 7 in 10 consumers say they use generative AI tools regularly, according to an Accenture survey of 18,000 people in 14 countries released last week. Half of these users have already used the technology to inform a purchasing decision.

Another 18% of active generative AI users said the technology was their preferred source for purchase recommendations. Generative AI was the second most common source, topped only by physical stores at 19%.

Three-quarters of users say they are open to using a trusted AI-powered personal shopper that understands their needs. Just 9% of consumers say generative AI is already their single most trusted source for deciding what to buy.

Generative AI is reimaging the digital shopping experience by making the product search experience conversational.

A traditional search engine can’t offer fashion advice, according to Jill Standish, senior managing director and global lead of retail at Accenture. Customers type in specific search queries and see results that directly match what they entered.

Search tools or chatbots powered by generative AI, in contrast, can talk back. A customer can start by mentioning they have a July wedding, and the technology can ask about age, themes and preferred styles to narrow down the results.

“We’re moving from a product search era to a recommendation era,” Standish told CX Dive. “It used to be you could search for a brand or a product, or you could search for a price. But could you ask for advice?”

One advantage of a generative AI experience is that it can reduce the impact of price on purchasing decisions. Accenture’s research found that consumers are 1.7 times more likely to accept a higher price point from a brand that delivers emotionally engaging experiences, and AI can facilitate those experiences.

While the potential varies by category, making a journey conversational can generate a certain level of emotional attachment between the customer and the product, according to Standish.

“It’s giving you advice, and if that advice is ‘here’s a healthier option for your dinner’ or ‘here’s the dress you should wear,’ you’re almost emotionally attached to the answer, and so you’re not necessarily searching on price,” Standish said.

However, the benefits of generative AI are predicated on trust. While many consumers are already familiar with the technology, brands can benefit from putting in the effort to onboard reluctant consumers or those unfamiliar with the technology.

Story Continues

Transparency is at the core of trust building exercises, according to Brett Leary, generative AI transformation and global retail lead at Accenture. Brands should let customers know when they interact with AI, and inform them that the results can sometimes be wrong, even as brands introduce guardrails to minimize the problem.

“We do believe that brands should help with the onboarding process to those new customers that are engaging with the tools for the first time,” Leary told CX Dive. “And there’s different tactics in terms of showing examples of how to talk to it, or here’s what the output could look like, or here’s some things that you could ask.”



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