SCAYLE's ‘Conversion Killer' report reveals 71% of US consumers are uncomfortable with the way retailers are using AI
HAMBURG, GERMANY, May 8, 2025 / EINPresswire.com / -- Consumer research released today by SCAYLE, one of the fastest-growing enterprise commerce platforms in the world, uncovers pain points for US shoppers, revealing 71% are uncomfortable with some of the AI tools retailers are using, and one in three are now putting prices before brand loyalty.
Key findings from SCAYLE's survey of more than 1500 US shoppers include:
- AI gone wrong: Only 18% of shoppers are not uncomfortable with certain AI-driven features when shopping. Nearly one-third of consumers are uneasy with retailers' use of facial recognition (32%), 30% with AI-created product images and models, and the same number with AI-powered customer service chatbots.
- Missed opportunities for innovation: Shoppers are open to AI being used for customer service and product discovery. 25% rank customer service as the biggest positive effect of AI, while 19% say product discovery will be the top area for transformation. Meanwhile, only 8% believe convenience, e.g., voice commerce or shopping assistants, will have the greatest impact on their buying experience.
- Loyalty drivers: Product quality trumps all else for 53% of consumers, followed by price competitiveness (38%) and good customer service (31%). When it comes to loyalty programs, 49% of consumers want to see regular discounts, and 36% want added incentives like free shipping, or buy now, pay later options – with 35% valuing loyalty programs that are free of costs.
'We know US retailers are facing a challenging landscape right now, with a turbulent economic climate reducing consumer purchasing power, and tariffs set to squeeze bottom lines even further,' said Daniel Fertig, Director Partnerships at SCAYLE. 'But our research shows that shoppers' concerns go beyond just costs. Many retailers are betting big on emerging tech like AI to improve customer experience, so it's interesting to hear that customers don't feel this is currently paying off. Brands need to continue investing in AI to get ahead – but it's clear customers want to see it used for product discovery and improving customer service, rather than AI-generated images or chatbots. The biggest takeaway is that – even during uncertain times – there are some immediate pain relievers for brands, like implementing AI solutions customers actually want, introducing incentive-driven loyalty programs, and prioritising product quality.'
The research also highlights some interesting generational divides among US shoppers' behaviors and preferences:
- Gen Z leads in subscription adoption: 67% of Gen Z consumers (ages 16-26) are likely to sign up for subscription services from retailers they shop with. This is more than double the number of Baby Boomer shoppers (ages 59-68) likely to sign up (31%), and significantly higher than the 56% average across all age groups.
- Millennials are most open to discovering new brands: When shopping on a marketplace, 30% of Millennials (ages 27-42) are looking for new brands to try, compared to 18% of Gen X and just 9% of Baby Boomers.
- Gen X and Baby Boomer Shoppers are most price-conscious: 59% of Baby Boomers and 57% of Gen X cite lower prices as their top reason for choosing a large enterprise retailer over a local or medium sized brand, compared to just 37% of Gen Z. 63% of Gen X and 67% of Baby Boomers would abandon a brand due to increased prices, compared to 44% of Gen Z and 45% of Millennials.
- Baby Boomers remain sceptical of AI: 40% of Baby Boomers express discomfort with AI chatbots, compared to 24% of Millennials (ages 27-42) and 25% of Gen Z.
Other findings:
- The power of payments: 52% of consumers cite increased prices as their primary reason for abandoning brands. 76% of online shoppers are also likely to abandon their carts when their preferred payment method isn't available. Flexible payment options are no longer a 'nice to have' – they are an essential part of the shopping experience.
- Omnichannel remains king: 57% of consumers prefer a mix of both online and in-store shopping, with 'buy online, pick up in-store' (38%) and 'buy online, return in-store' (37%) ranking as the most valued omnichannel features.
Unless otherwise stated, all data are provided by YouGov Deutschland GmbH. 1.583 persons age 16-68 participated in the survey, which took place between the 21.1. and 28.1.2025.
About SCAYLE
SCAYLE is an enterprise shop system enabling B2C brands and retailers to create unique customer experiences with ease. Its extensive feature set includes PIM, Shop Management, Checkout, and OMS, as well as functionalities for omnichannel, advanced promotions, and search. And all is unified within one intuitive user interface. The modern architecture can be flexibly expanded via APIs. Leading brands such as Harrods, Manchester United, Deichmann, s.Oliver, Fielmann, and FC Bayern choose SCAYLE to accelerate innovation speed and drive growth in commerce. SCAYLE GmbH is part of the ABOUT YOU Group.
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