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The Critical Consumer 2024
The race to harness AI has gripped every business sector and industry in 2023, driven
by the advancements of Generative technology. Within retail, this technology can
improve the online buying experience, especially in sectors where consumers prefer to
test in person such as beauty and cosmetics or apparel. For example, while AI's global
market size for the beauty and cosmetics industry was valued at $2.7 billion in 2021,
it is expected to reach $13.3 billion by 2030, according to a market intelligence report
by InsightAce Analytic. Companies are already using AI advances to allow consumers
to virtually apply make-up or discern their "skin age", while the technology is also
increasingly deployed to aid better customer product choices online and reduce return
rates in apparel.
Beyond improving the shopping journey, Generative AI can serve a key role in supporting
staff shortages or driving operational efficiency. GenAI solutions in contact centres
present an alternative as a first point of contact for consumers, which can often answer
more predictable questions, freeing up human customer service agents to handle
more complex tasks. As a rule of thumb, while GenAI business use cases will continue
to expand, the tech is currently best suited to automate repetitive tasks, as well as
summarising vast amounts of content and data.
From a consumer perspective, AI adoption and usage for product discovery is catching
on fastest in the Middle East:
• 41% of consumers in the UAE and 36% in Saudi Arabia are utilising AI tools to research
products and holidays.
• Among the five European countries in our survey, Italian consumers scored
highest in this respect, at 23%. Interestingly, while the UK uses the digital channel
the most for purchases, it significantly trails the other four European countries in
AI usage for research.
USE OF
TECHNOLOGY5 IN-DEPTH INSIGHTS
Which statement applies more to you?
RESEARCH PREFERENCES OF TRAVEL CONSUMERS ACROSS MARKETS
I use classic methods to research products and holidays I use AI tools to research products and holidays
France
87.43% 12.57%
Germany
84.25% 15.75%
Italy
76.73% 23.27%
Saudi Arabia
63.78% 36.22%
Switzerland
19.50%
80.50%
UK
91.21%
8.79%
UAE
59.30% 40.70%