When AI revolutionizes shopping: opportunities and risks for consumers

When AI revolutionizes shopping: opportunities and risks for consumers

Artificial intelligence (AI) is on the rise and revolutionizes the way in which consumers buy. The trend of using KIS like "Rufus", "Agent Pay" and "Intelligent Commerce" for purchasing is increasing worldwide. These systems enable users to delegate the purchase process through simple verbal requests such as "Find the best winter jacket". The AI ​​then automatically takes over the comparisons of products, the payment and organization of the delivery. According to [OE24] (https://www.oe24.at/businesslive/goodbye-shopping-wenn-k-i-bauf-ueberntmt.

The vision is that customers speak in the future instead of making several clicks. Visa processes around 3.3 trillion transactions every year and PayPal has over 430 million users. Despite this progress, however, there are considerable concerns. A survey of omni shows that 58 percent of consumers are concerned about their data. In addition, two thirds of the respondents reject the full submission of their purchase decisions to KIS. Critics warn that AI systems could collect personal data such as clothing sizes and account information, which can lead to incorrect purchases and possible data leaks.

challenges in online trading

Artificial intelligence should optimize and personalize online trade. The AI ​​assistant "Rufus", which is currently being tested at Amazon, should not only answer product-specific questions, but also take into account personal preferences of customers. Although the use of AI in online trading offers advantages such as improved individualization of purchasing, only 4 percent of German trading companies currently use such technologies. According to the Tagesschau, 56 percent of companies in AI see a competitive advantage. Nevertheless, around 68 percent of companies do not plan any efforts, which is due to a lack of applications and high costs.

experts warn that companies that do not invest in AI could suffer a decisive disadvantage in competition. At the same time, there are major risks for consumers, including the risk that personal weaknesses will be exploited and fake reviews are circulating. The Federal Consumer Center (VZBV) advises caution in personalized offers and customer reviews. In order to address these risks, the AI ​​Act of the EU should prohibit the responsible use of AI and manipulative techniques. Nevertheless, some fear that there are protective gaps and possible bypasses for companies that could violate ethical standards.

The role of AI in the trade

In the past five years, AI has developed from a mere trend towards a key technology in retail. The use of sophisticated algorithms and generative AI transforms the industry sustainably. It not only offers personalized shopping experiences, but also enables more precise forecasts of customer needs. According to an online study that was carried out in cooperation between the trade association Germany and Safaric Consulting, AI is a central success factor for the future of trade. This study has been the fourth edition of the AI ​​study since 2020 and illustrates how important the use of big data and innovative AI applications are for growth and competition. [Wet trade.de] (https://einzelhandel.de/ki study) records these changes in detail.