How Tech is Impacting Consumer Behaviour in the Age of AI  

Artificial Intelligence, 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 their 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 40% would leverage AI to automate and speed up their everyday shopping decisions, making it essential for companies to assess which AI advancements are going to appeal to consumers and provide options to support older consumers.  

Locally, the report found 30% of Australian consumers are likely to accept a product recommendation from their AI assistant, and 30% would leverage AI to automate and speed up their everyday shopping decisions. 

Trust in AI technologies still slow

Despite the acceptance of AI to help with decision-making the survey uncovered 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.  

What’s more, 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 also 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.  

Meanwhile some 34% of Australian consumers say they are likely to spend more on a purchase because of an in-app challenge, point system or reward 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 behaviour that is benchmarked globally is now table stakes to establish and maintain any competitive advantage.” 

Technology accelerating Gen Z consumer behaviour

Further research from NIQ has found technology is also 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.   

In Australia alone, 26% of Gen Z use their phones while shopping to make purchasing decisions compared to 16% of Gen Y, 16% for Gen X and 3% for Boomers.  

“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,” said Tracey Massey, NIQ’s Chief Operating Officer. “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.”