TechForge

October 11, 2024

AI, ecommerce, digital devices and data-driven consumer platforms are revolutionising the way consumers interact with brands – and we’re also seeing a seismic generational consumer shift in behaviours along the way, new research from NielsenIQ (NIQ) shows.

NIQ recently released its much-anticipated Mid-Year Consumer Outlook: Guide to 2025 report, which found 40% of consumers globally would accept a product recommendation from their AI assistant. The report also said 40% would leverage AI to automate and speed up their everyday shopping decisions. This makes it essential for companies to assess which AI advancements are going to appeal to consumers and provide options to support older consumers.

Trust in AI technologies still slow

Despite the acceptance of AI to help with decision-making, the survey stated that 56% of global respondents said they would avoid sharing personal details virtually because they do not trust AI technologies to protect the privacy of their data. This was compared with 18% who would be willing to share personal information.

Nearly half (49%) said they feel most comfortable with person-to-person support interactions and would wait longer for support from a human.

Omnichannel and in-app experiences

The social commerce revolution has led to the evolution of omnichannel, with an 11.6% increase in global online sales performance and the rise of gamification, with 36% of consumers saying they would spend more on a purchase because of an in-app experience.“There is increasing demand for AI-driven insights based on large quantities of granular data that only NIQ can deliver,” said Tracey Massey, COO of NIQ. “Having your finger on the pulse of current and expected consumer behavior that is benchmarked globally is now table stakes to establish and maintain any competitive advantage.”

Technology accelerating Gen Z consumer behavior

Further research from NIQ has found technology is becoming a key driver in accelerating consumer behaviour for Gen Z, defined as anyone born between 1997 and 2012.

NIQ recently collaborated with the experts at World Data Lab to put together a first of its kind, comprehensive generational spending report focused on Gen Z, the “Spend Z” report. The report found online reviews from other shoppers are paramount when shopping, with 53% of the Gen Z population likely to make purchases on social media or live stream platforms.

“Gen Z is here, they are ready to spend, and companies need to know how to pivot to serve them. Understanding what makes this generation different is key to unlocking the greater than $12 Trillion USD growth opportunity they represent,” Massey said. “Companies are trying to understand the opportunities for growth with Gen Z, and how they are influencing others. ‘Spend Z’ is just one example of how NIQ helps our clients uniquely achieve their ambitions by anticipating and meeting consumer needs.”

For more information, please visit www.niq.com

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Tech Wire Asia

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