AI Shopping Assistants Jump to the Top of Retail Budgets

Retailers have spent years enhancing digital shopping capabilities.

Today, many merchants are evaluating which features still justify additional investment as artificial intelligence becomes a larger part of their technology plans.

The PYMNTS Intelligence report “Global Digital Shopping Index: The AI-Powered Shopper Has Arrived,” commissioned by Visa Acceptance Solutions, found that AI is influencing more than how consumers shop. It is also changing how retailers allocate development resources.

AI shopping assistants are now the most frequently cited digital capability merchants plan to invest in during the next three years, selected by 37% of retailers, according to the report, which was based on surveys of 5,841 consumers and 1,185 merchants in the United States, Brazil and the United Arab Emirates.

The increase has coincided with reduced emphasis on several features that became standard components of digital commerce, such as merchant support for cross-channel shopping, stored payment methods and mobile apps. The changes do not necessarily mean that retailers are abandoning these capabilities. Instead, they suggest merchants are becoming more selective about where they devote development budgets and personnel.

As AI projects move higher on investment plans, other initiatives appear to be receiving less attention than they did a few years ago.

Nearly Half of Online Shoppers Now Use AI to Buy

The shifting allocation of resources reflects broader changes in consumer behavior. The report found that 47% of online shoppers used some form of AI during their most recent purchase. Consumers used AI to compare products, research purchases and gather product information before completing a transaction. Looking ahead, 64% said they expect to use AI shopping agents within two years.

The adoption rates help explain why retailers are placing greater emphasis on AI. Product discovery has long influenced purchasing decisions, and AI is becoming another point where…

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