According to new study nearly half of Australians now trust AI-generated product recommendations more than advice from retail sales staff.

The research, commissioned by supply chain commerce company Manhattan Associates, found 47% of Australians trusted AI shopping recommendations more than advice from a retail sales assistant.

A further 29% placed roughly equal trust in both, meaning 76% trusted AI at least as much as the person serving them in a store.

The findings point to a significant change in the way consumers research major purchases before spending their money.

Almost one in four Australians, or 23%, now turn to AI first when considering an important purchase, while only 7% begin by asking an in-store sales assistant.

Raghav Sibal, APAC Vice President at Manhattan Associates, says consumers were increasingly arriving at stores with much of their product research already completed.

“This is changing the type of information they expect retail employees to provide and placing more pressure on staff to offer advice that customers cannot easily find online,” Sibal said.

“Consumers are using AI for product discovery, to compare options and inform their purchasing choices. These are some of the many things they might previously have relied on a retail sales assistant for,”

“This doesn’t make retail staff irrelevant, but it does change what customers expect from them. Shoppers might now arrive in-store already knowing which products they are considering, what alternatives are available and what they expect to pay,”

“Retailers and their teams need to be ready to add value beyond information the customer can now find for themselves.” he said.

AI assistants have already become a familiar part of the shopping process for many Australians.

More than four in five respondents, or 83%, said they had used services such as ChatGPT, Gemini or Copilot to research a purchase, while 36% said they did so regularly.

Cost and convenience drive shoppers towards AI

The appeal of AI appears to be closely tied to cost-of-living pressures, with consumers using the technology to compare prices and search for better value before buying.

Separate PayPal research found price comparison was the most common shopping-related use of AI, with 57% of Australians who used the technology while shopping saying it helped them save money.

Convenience was another major reason consumers preferred AI over a conversation with retail staff. Manhattan Associates found 42% chose AI because it was available around the clock, while 20% valued its speed and 19% said it made comparing products easier.

Sibal says faster access to product information was also raising expectations once customers moved from research to the point of purchase.

“Retailers still needed to provide accurate information about pricing, availability and delivery, particularly when consumers arrived with a clear idea of what they wanted,”

“AI can make it easier for consumers to reach a decision, but that puts more pressure on retailers to deliver when they move from research to purchase,”

“Knowing a product exists isn’t good enough. Customers need to know whether it’s available, where it’s available, what it will cost and how quickly they can get it,” he said.

Retail websites and physical stores remain important

Despite growing trust in AI recommendations, the research suggests Australians are not ready to hand the entire shopping process over to an automated assistant.

Even if AI could accurately answer every question about a product, 84% said they would still be likely to visit the retailer’s website before buying, while 81% would still consider visiting a physical store.

Those figures show that AI is having its greatest influence during the research and comparison stages, while retailers retain control over the final purchasing experience.

A recommendation may lead a customer towards a product, but inaccurate stock information, unexpected pricing or poor delivery options can still cause the sale to collapse.

“AI can help a customer decide what they want, but it can’t compensate for a poor experience when they are ready to buy,” said Siba

“If the price they find is different, the product isn’t available or the fulfilment options don’t meet their expectations, retailers still risk losing that customer at the point that matters most,”

“As AI becomes more influential earlier in the journey, retailers need to ensure they deliver a connected experience through to purchase,”

“Consumers are arriving better informed and with clearer expectations, putting greater importance on the retailer’s ability to turn that intent into an accurate and reliable purchase and fulfilment experience,” he concluded.

The findings suggest AI is unlikely to replace retail staff entirely, but it is already changing what shoppers expect from them.

Retailers that fail to match AI’s speed and convenience with accurate stock, pricing and product advice risk losing customers at the final point of sale.