Nearly three-quarters of shoppers are now using AI for product discovery, according to market researcher NielsenIQ.
In a related development, retail media has grown into a $184 billion global market, NIQ pointed out. Adopted together, AI, retail media and other innovative applications of technology are reshaping how consumers discover, evaluate and ultimately purchase products, NIQ noted.
The effects of AI and retail media are particularly evident, the market researcher maintained. As consumers become more selective about where they seek value and where they trade up in purchasing, AI and retail media are helping companies identify which consumers are more or less likely to respond to premium messaging, promotions and personalized offers.
In its global report “A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption,” developed in collaboration with World Data Lab, Nielsen characterizes artificial intelligence, retail media networks, and social commerce as transforming the path to purchase and influencing which products shoppers ultimately buy.
The latest research builds on earlier analysis of how Eastern commerce innovation and Western retail media monetization have been reshaping the global consumer marketplace, NIQ indicated.
Among the key findings of the latest report:
- As three-quarters of shoppers use AI during product discovery, two in 10 consumers have already taken a step further and use AI more extensively as part of their shopping process.
- Almost a third of Western consumers have purchased a product after discovering it on a social platform.
- About 60% of consumers in Asia, Australia, and Oceania shop through social and quick-commerce channels.
Still, 68% of North American consumers have never purchased through social media, suggesting that many shoppers in the region are still evaluating alternative purchase channels.
NIQ suggested that AI-powered tools are more often helping consumers determine where to trade up, where to save, and which retailers and brands deserve consideration, serving as an alternative to search, reviews, and word-of-mouth recommendations. The shift creates opportunities and challenges for manufacturers and retailers, NIQ concluded.
Consumers who are likely to trade up are still value-led, with 60% saying they focus on value for money, the market researcher observed, so spelling out advantages can help prompt upgrades. They are also willing to pay for convenience, with 46% ready to do so, and are often early adopters, with 38% open to new products or brands.
As AI-powered recommendations become more personalized, discoverability is becoming a significant driver of growth. As such, companies that fail to optimize product content, digital shelf presence and visibility risk becoming less discoverable as AI agents and recommendation engines play a larger role in shopping journeys.
With consumers becoming increasingly selective about where they trade up and where they seek value, AI and retail media are helping companies identify which consumers are most likely to respond to premium messaging, promotions and personalized offers, NIQ maintained.
