AI adoption among consumers is set to reshape purchasing behaviors, with the UK projected to see $690 billion in AI-influenced spending over five years.
A recent study by Cognizant, in collaboration with Oxford Economics, highlights the transformative potential of artificial intelligence (AI) in consumer purchasing. The report, ‘New Minds, New Markets’, projects that AI-driven consumer spending will reach $690 billion in the UK by 2030, with similar growth expected in Australia ($669 billion) and Germany ($539 billion). In the US, this figure is estimated at a staggering $4.4 trillion, with AI enthusiasts aged 18 to 44 leading the charge.
The study also reveals that AI could influence 39% of consumer spending in the UK by 2030, compared to 46% in the US and Germany, and 55% in Australia. Ravi Kumar S., CEO of Cognizant, emphasized the importance of balancing convenience with trust, stating, “Understanding consumer attitudes is crucial for developing AI solutions that enhance convenience while building confidence in AI’s potential to reimagine the customer experience.”
Consumer Comfort with AI Across the Buying Journey
The report identifies three key phases in the purchasing journey where AI is expected to play a pivotal role: Learn, Buy, and Use.
Learn Phase: Consumers are most comfortable using AI during the discovery phase, with 47% expressing ease in leveraging AI tools like personalized recommendations and virtual assistants to evaluate products and services.
Buy Phase: Hesitation arises during the decision-making phase, with 75% of consumers unwilling to let AI automatically reorder or pay for high-value items without their approval. Comfort levels are particularly low among older demographics, with only 16% of those aged 55+ open to using AI in this phase.
Use Phase: Post-purchase, comfort levels rebound as consumers recognize the value of AI in automating low-cost reorders and enhancing after-sales experiences. For instance, smart systems like HVAC units can autonomously reorder supplies, streamlining maintenance for users.
Preparing for an AI-Augmented Future
Cognizant’s findings underscore the need for businesses to adapt to AI-empowered consumers. The economic impact is expected to be substantial, with AI projected to contribute $1 trillion to the US economy by 2032. To support this shift, Cognizant has launched initiatives like Cognizant Moment, aimed at helping businesses integrate AI into customer experiences, and the Synapse program, which focuses on upskilling over one million individuals globally.
For supply chain leaders, the implications are clear: AI will not only redefine consumer expectations but also demand agile, trust-centric strategies to meet evolving market dynamics. As AI adoption accelerates, businesses that prioritize secure, seamless, and human-centered AI solutions will be best positioned to thrive in this new era.
