Capgemini: How Gen AI is Driving Consumers Away From Search

The retail sector is experiencing a fundamental shift in how consumers discover and purchase products, driven by advances in AI technology. Search engines, which have dominated product discovery for two decades, are facing their first significant challenge as consumers embrace AI-powered alternatives.

These changes are reshaping the relationship between retailers, brands and their customers, according to new research from Capgemini, the global technology consulting firm. The firm’s latest study of 12,000 consumers across North America, Europe and Asia-Pacific reveals that 58% have replaced search engines with generative AI (Gen AI) platforms for shopping research, up from 25% in 2023.

This transition marks a significant departure from traditional digital shopping patterns. With Gen AI becoming central to the consumer experience, the technology’s ability to process natural language queries and provide contextual recommendations is attracting consumers who find traditional search engines increasingly limiting.

The shift represents a transformation in consumer behaviour, with 71% of respondents wanting generative AI integration in their purchasing journey. However, the implementation of these technologies presents challenges. Consumer satisfaction with current Gen AI implementations has decreased from 41% to 37% year-on-year, indicating a gap between expectations and delivery in retail applications. The research shows 68% of consumers want Gen AI tools to aggregate search results from online search engines, social media platforms and retailers’ websites into consolidated purchase options.

Capgemini Research Institute’s annual consumer trends report highlights that 46% of consumers express interest in Gen AI’s impact on online shopping, with three-quarters open to AI-generated recommendations, an increase from 63% in 2023.

Gen AI adoption rises as Capgemini spots delivery trends

The research indicates geographical variations in consumer preferences for rapid delivery services. Consumer willingness to pay for quick delivery has increased from 41% to 70% between 2023 and 2024, with shoppers prepared to pay 9% of order value for delivery within two hours.

This trend is prevalent in India, Germany, France, Sweden, Spain and the Netherlands, with the United States showing lower adoption rates. The research indicates 65% of consumers consider two-hour delivery capability a key factor in retailer selection.

Lindsey Mazza, Global Retail Lead at Capgemini, says: “Consumers today want personalized shopping experiences, enhanced by AI and Gen AI. In addition, they expect fast and efficient deliveries and have become more conscious of their purchasing impact.”

Artificial influencers gain traction in social commerce

The emergence of AI-generated avatars as product promoters has gained acceptance, with 25% of consumers reporting trust in these synthetic personalities for purchase recommendations. These AI influencers are computer-generated characters that interact with audiences through social media platforms.

Social commerce platforms have become central to product discovery, with over 50% of consumers finding new products through social media, an increase from 32% in November 2022. The trend is pronounced among younger demographics, with 70% of Generation Z consumers learning about products through social media influencers in 2024, compared to 45% in 2023.

Traditional retail advertising maintains influence, with 67% of consumers noticing advertisements on retailer websites and applications during product searches. Online advertisements have influenced one-third of digital purchases in the past year.

In-store advertising effectiveness remains limited, with 59% of consumers reporting generic content that fails to address individual needs. Retail Media Networks (RMNs), which are advertising platforms operated by retailers that enable brands to reach consumers through various digital touchpoints, are becoming a focus for retailers seeking to improve advertising performance.

The research reveals 53% of consumers switch brands or retailers despite loyalty programme membership, with lack of personalisation cited as a major factor. The survey methodology covered 12 countries, with fieldwork conducted in October and November 2024.

Lindsey Mazza says: “To remain competitive and build brand loyalty, retailers must adopt strategies that put the consumer at the center, leveraging AI to deliver seamless yet exceptional customer interactions. The clear shift towards social commerce is also significant.”

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