SAP Engagement Cloud research flags growing tension in Generation Z’s relationship with AI technology
New research, involving 2,000 respondents in the UK, from SAP Engagement Cloud reveals that while Gen Z is leading the adoption of AI powered shopping, it is also the generation most likely to walk away from brands that fail to meet expectations around how AI is used.
According to SAP's 2026 Customer Loyalty Index, AI is rapidly becoming part of the shopping journey. 23% of UK consumers regularly rely on AI tools or assistants when deciding what to buy, while 26% have purchased products recommended by an AI assistant. A further 23% would be comfortable allowing an AI assistant to make purchases on their behalf.
Gen Z is increasingly giving AI a significant role in what they discover, choose and buy. In the UK, 48% of Gen Z consumers have purchased products recommended by AI and 37% would trust an assistant to make a purchase on their behalf. Yet 43% say they have switched brands because of how AI was used.
The research also points to a broader shift in consumer influence. 23% of UK shoppers would prefer recommendations from AI over advice from friends and family, highlighting AI's growing role in shaping purchasing decisions. For brands, the findings suggest that greater adoption does not automatically translate into greater customer loyalty. While AI has the potential to strengthen relationships, Gen Z consumers expect brands to use the technology responsibly and transparently.
Among Gen Z consumers, 15% are more loyal to brands that use AI to improve the shopping experience, while 21% feel more loyal to brands that market to them in a personalised way. However, enthusiasm comes with clear expectations. 37% of Gen Z consumers want access to human support if something goes wrong, 32% want assurances around data privacy and security, and 29% want transparency about how AI driven decisions are made. A quarter say undisclosed or non-transparent use would cause them to lose loyalty to a brand altogether.
"Gen Z isn't rejecting AI. They're embracing it faster than any other generation and increasingly allowing it to influence what they buy," says Sara Richter, CMO, SAP Engagement Cloud. "The surprise is that greater adoption does not translate into greater tolerance. Gen Z is willing to trust AI with recommendations and even purchasing decisions, but they expect brands to be transparent about how it is used. Brands that fail to earn that trust risk losing customers just as quickly as they gain them."
2026 RTIH Innovation Awards
AI will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
