A global study conducted by IBM reveals the growing gap between customer demands and current retail offerings. The study, conducted by the IBM Institute for Business Value, shows that only 9% of respondents are satisfied with the in-store shopping experience. In fact, only 14% of respondents are satisfied with the online shopping experience. The retail industry is currently facing immense pressure from evolving customer expectations. At the same time, with the transformative impact of new technologies such as artificial intelligence (AI), IBM emphasizes how technology can be used to improve the customer experience. Integrating AI into retail As part of the "Reinventing Retail with AI: Customers Won't Wait" consumer study, nearly 20,000 global consumers were surveyed. The study analyzed customer preferences and behaviors, revealing that customers typically spend hours searching for suitable products, comparing prices, and evaluating sustainability performance. According to the findings, approximately 80% of surveyed consumers who have not yet used AI for shopping expressed interest in using the technology for various aspects of their shopping journey. IBM highlights the current dissatisfaction of consumers with the retail experience, while also emphasizing the role technology plays in improving the overall shopping experience. Over half of the respondents expressed a desire for AI-enhanced features such as virtual assistants (55%) and AI applications (59%) to assist them during shopping. Consumers surveyed by IBM also expressed a desire for stores to offer a wider variety of products (37%), more information about products (26%), and faster checkout processes (26%). The majority of respondents (65%) use mobile apps to enhance their in-store experience, demonstrating a trend towards digitally integrated physical retail experiences. In an increasingly digital world, AI is undoubtedly becoming an integral part of the retail industry, providing business leaders with deeper insights. Last year, fashion group Mango launched a conversational AI platform called Lisa to help improve series development, customer interactions, and after-sales service for its employees and partners. Similarly, URBN, the parent company of Urban Outfitters, has adopted AI technology in its merchandise planning platform to better meet customer demands. Integrating advanced technology into retail has the potential to truly enhance the customer shopping experience. IBM's survey outlines actionable strategies to help retail businesses meet the changing consumer demands in the digital age. Increasing consumer interest in AI However, despite two-thirds of surveyed consumers discovering new products online, many also expressed dissatisfaction with their online shopping journey. Consumers cited challenges in finding the products they want (36%), a lack of sufficient product information (33%), and cumbersome return processes (33%). In addition to consumers expressing interest in using AI technology to enhance their shopping experience, 52% of consumers are interested in receiving personalized information, advertisements, and offers related to their specific interests. During a period of economic uncertainty, with challenges such as inflation continuing to impact consumer shopping behavior, 60% of consumers surveyed by IBM stated that inflation affects their shopping decisions, with price being the primary reason for changing stores or brands. "Faced with rapidly changing consumer expectations and the harsh reality of today's economic situation, the retail industry is facing ongoing challenges - as well as unprecedented opportunities," said Luq Niazi, Global General Manager at IBM. "The IBM IBV Consumer 2024 study highlights the opportunity for retailers to integrate AI and other technologies into digital and physical shopping experiences to meet these changing consumer demands and economic challenges. Leveraging advancements in AI technology, retailers can boldly enter a new era of business and fulfillment, leading with innovation to create intuitive, unified, personalized, and efficient shopping experiences."