Cognizant: as AI influenced buying evolves retailers must navigate mixed consumer attitudes

UK consumers embracing AI could drive $690 billion of spending by 2030, accounting for up to 55% of spending, according to research by Cognizant, in collaboration with Oxford Economics.

This also found that currently, 47% of consumers across all age groups feel comfortable using AI to help choose products and services. While 28% are fine with AI reordering low cost items, 75% won’t trust it to automatically reorder or pay for high value purchases without approval.

The study also predicts that US consumers who embrace AI could drive 46% of spending by 2030. In Australia, this projection rises to 55% over the same period. In Germany it's estimated at 46%.

"As AI influenced buying evolves, businesses must navigate mixed consumer attitudes towards AI," says Ravi Kumar S., CEO at Cognizant.

"Enterprises are balancing the demand for convenience with the need for control and trust. Understanding these attitudes is crucial for developing AI solutions that not only enhance convenience but build confidence in the full potential of how AI can reimagine the customer experience and unlock tremendous value."

Cognizant and Oxford Economics examined historic patterns of consumer technology adoption across a range of demographics and grouped them into cohorts based on behavioural dynamics.

They then aligned these cohorts with data from a survey of 8,400 respondents focusing on their openness to using AI in the buying experience. With 75% of all respondents noting they have frustration with the buying process today, the study found the transformative potential of AI will reshape the purchasing journey in three pivotal phases in the years to come: Learn (when consumers learn about new products), Buy (when consumers make a purchase), and Use (when consumers are in the process of using a product).

For the Learn phase, across all consumer age groups, 47% cite they are comfortable using AI to help choose products and services. In this phase, AI powered search tools, personalised recommendations and virtual assistants can be essential tools in the discovery and evaluation stages of consumer journeys. Technology companies are already building these capabilities into their consumer facing toolsets, making it easier for consumers to use AI to gather information and shortlist options.

In the Buy phase, consumers share concerns around security and trust when it comes to using AI. The study showed 75% are unlikely to allow AI to automatically reorder or pay for high value items without their direct authorisation. Additionally, only 16% of those who are 55 years and older are comfortable using AI during this phase (and only 33% are comfortable among the 18–44-year-old group).

In the US phase, consumers benefit from AI's ability to help them tap into time savings and targeted services that add value to their after-purchase experience. Across all consumers, 28% said they are comfortable with the technology reordering low priced items.

For example, smart HVAC systems could intelligently reorder air filters from the manufacturer directly, reducing the onus on consumers to identify the need for replacements themselves or reliance on local retailers to deliver supplies in a timely manner.

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 3rd July. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

FAQs

Is there a fee to enter the awards?: No, it is free of charge.

Can I enter across multiple categories: Yes.

Do I need to complete all the sections in the entry form? No, but the more information you provide, the better chance you have of producing a successful submission.

Is there a certain timeframe for nominated projects, initiatives etc? Yes, nominated projects, initiatives etc should have been completed (or substantially completed) during the last 12 months.

Who has visibility of our completed entry form and what information will be public should we win or be shortlisted? Only our Editor, Scott Thompson, and judging panel will view submissions. The information provided in the summary section of the entry form will be made public.

Do you only accept entries from UK-based companies? No, we accept entries from all parts of the world.

What is the shortlists process? Shortlists will be announced in April 2025, then shortlisted entries will be sent to our independent judging panel who will decide upon the winners and highly commended submissions. Shortlisted companies will be invited to attend an awards ceremony at The Barbican in Central London on Thursday, 3rd July 2o25.

Do winners and highly commended companies receive post-event coverage? Yes, post-event coverage includes articles on our website and also an in-depth awards review in our printed magazine. There is also the opportunity for a company profile type piece to be published on our site and within our magazine.

When is the deadline for 2025 submissions? Friday, 23rd May 2025.

When will the 2025 winners be revealed? Winners will be announced at an event at The Barbican in Central London on Thursday, 3rd July. This will kick off with a drinks reception, followed by a three course meal, awards ceremony, and after party featuring DJ until midnight.

Who will be judging submissions? Details of our 2025 judging panel will be announced in the near future.