A new study by Cognizant and Oxford Economics reveals the profound impact of Artificial Intelligence (AI) on the consumer purchasing journey. By 2030, AI is projected to drive an estimated $4.4 trillion in consumer spending in the United States alone, with significant influence in other major economies like the United Kingdom ($690 billion), Australia ($669 billion), and Germany ($539 billion).
Key Findings:
- The rise of AI-influenced spending: The study highlights the growing influence of AI-savvy consumers, particularly those aged 18-44. In the U.S., these individuals are expected to drive nearly half (46%) of all consumer spending by 2030. This figure rises to 55% in Australia, underscoring the significant shift in consumer behaviour.
- Consumer attitudes towards AI: While consumers are receptive to AI in the product discovery phase (“Learn”), utilising AI-powered search tools and personalised recommendations, hesitation arises during the decision-making phase (“Buy”). Concerns around security and trust are prominent, with a majority of consumers reluctant to authorise AI for high-value purchases without direct involvement.
- The “Use” phase: embracing convenience: After the purchase, consumers are more open to AI-powered services that enhance convenience and streamline post-sale experiences. Examples include AI-driven reordering of low-priced items and smart home systems that automate tasks like air filter replacements.
The study underscores the significant economic impact of AI, emphasising the transformative potential of AI in driving consumer spending and shaping future economic growth. Learn more.