Artificial Intelligence overtakes search engines as shopping advisors
In the ever-evolving digital landscape, Artificial Intelligence (AI) is making significant strides in reshaping the shopping experience, with Germany being no exception. Here's a snapshot of the key trends and comparisons:
### Hyper-Personalization and AI-Driven Recommendations
Retailers worldwide, including those in Germany, are embracing hyper-personalization strategies using real-time data. This approach involves tailoring homepages, offering situational recommendations, and maintaining cross-channel consistency based on customer behaviour, location, and preferences.
Moreover, generative AI (genAI) is becoming increasingly important for product discovery and recommendations. Brands like Zalando in Germany are leveraging AI for personalised content creation, such as generating campaign visuals.
### AI Adoption and Consumer Behavior
While specific data on Germany might not be as detailed as in other regions, the trend of increasing AI adoption for shopping is observed globally. For instance, in the U.S., 39% of consumers use AI for product discovery, with over half of Gen Z doing so. Internationally, consumers are increasingly trusting AI for shopping recommendations, with 18% of users trusting genAI more than friends and family for recommendations.
### Impact on Manufacturers and Retailers
The use of AI in shopping is compelling manufacturers to rethink their product development and marketing strategies. They must ensure that product information is optimised for AI-driven discovery, focusing on solution-oriented descriptions rather than keyword optimisation.
Retailers, on the other hand, face the challenge of integrating AI effectively into their platforms to maintain visibility and attract consumers. This involves structuring product data for AI interfaces like chatbots and shopping agents.
### Key Differences and Similarities
While fashion ecommerce growth in Germany is slower compared to broader ecommerce, there is still a significant market with projected sales of $20.76 billion in 2025. Internationally, AI is driving shopping behaviour similarly by enhancing personalisation and product discovery. However, specific challenges and opportunities may vary based on regional consumer behaviour and market maturity.
The study on AI usage for online shopping was conducted by Norstat and commissioned by Verdane. Among the key findings, nearly half of AI users in Germany often seek shopping advice from tools like ChatGPT instead of search engines, with ChatGPT having 86% regular users, followed by Google's Gemini with 26% and Microsoft Copilot with 20%. The highest AI usage for online shopping is in the purchase of travel, with 33%, while fashion and clothing (13%), cosmetics (12%), and real estate (7%) show relatively low usage.
In conclusion, AI is transforming shopping experiences globally by providing personalised and efficient shopping experiences. Manufacturers and retailers must adapt to these changes to remain competitive in the AI-driven market.
Artificial Intelligence (AI) is instrumental in personalized product discovery and recommendations for retailers in Germany, with Zalando being a notable example. Additionally, the study on AI usage for online shopping found that a significant number of AI users in Germany frequently seek shopping advice from ChatGPT instead of search engines.
