Many US shoppers uneasy about AI tools like facial recognition being used by retailers, SCAYLE research

Consumer research released by SCAYLE reveals that 71% are uncomfortable with some of the AI tools retailers are using, and one in three are now putting prices before brand loyalty.

Key findings from the company’s survey of more than 1,500 US shoppers include:

Only 18% are not uncomfortable with certain AI driven features when shopping. Nearly one-third of consumers are uneasy with retailers’ use of facial recognition (32%), 30% with AI created product images and models, and the same number with AI powered customer service chatbots. 

Shoppers are open to the tech being used for customer service and product discovery. 25% rank customer service as the biggest positive effect of AI, while 19% say product discovery will be the top area for transformation. Meanwhile, only 8% believe convenience, e.g., voice commerce or shopping assistants, will have the greatest impact on their buying experience. 

Product quality trumps all else for 53% of consumers, followed by price competitiveness (38%) and good customer service (31%). When it comes to loyalty programmes, 49% of consumers want to see regular discounts, and 36% want added incentives like free shipping, or buy now, pay later options – with 35% valuing loyalty programmes that are free of costs.

“We know US retailers are facing a challenging landscape right now, with a turbulent economic climate reducing consumer purchasing power, and tariffs set to squeeze bottom lines even further,” says Daniel Fertig, Director Partnerships at SCAYLE.

“But our research shows that shoppers’ concerns go beyond just costs. Many retailers are betting big on emerging tech like AI to improve customer experience, so it’s interesting to hear that customers don’t feel this is currently paying off. Brands need to continue investing in AI to get ahead - but it’s clear customers want to see it used for product discovery and improving customer service, rather than A -generated images or chatbots."

"The biggest takeaway is that - even during uncertain times - there are some immediate pain relievers for brands, like implementing AI solutions customers actually want, introducing incentive-driven loyalty programmes, and prioritising product quality.”

The research also finds that 76% of online shoppers are likely to abandon their carts when their preferred payment method isn’t available. Flexible payment options are no longer a ‘nice to have’ – they are an essential part of the shopping experience.

57% prefer a mix of both online and in-store shopping, with ‘buy online, pick up in-store’ (38%) and ‘buy online, return in-store’ (37%) ranking as the most valued omnichannel features.

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 Wednesday, 3rd September.

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

Key 2025 dates

Friday, 18th July: Award entry deadline 

Tuesday, 22nd July: 2025 finalists revealed

Wednesday, 23rd July - Friday, 8th August: Judging days

Wednesday, 3rd September: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.