As artificial intelligence gains traction in retail, merchants are reallocating budgets toward AI shopping assistants, signaling a shift away from traditional digital commerce capabilities despite steady consumer demand.
- 37% of retailers prioritize AI shopping assistants in upcoming tech investments
- Consumer demand remains high for cross-channel shopping and mobile apps despite reduced merchant focus
- AI influences 47% of recent online purchases, with 64% of consumers expecting to use AI agents soon
Market signal
AI shopping assistants have surged to the top of global retailers’ digital investment priorities, overtaking longstanding features such as stored payment methods, cross-channel shopping, and mobile apps. This shift reflects a broader industry recalibration where merchants assess not just new capabilities but the ongoing value of established ones.
The PYMNTS Intelligence report, drawing from nearly 1,200 merchants and over 5,800 consumers across the US, Brazil, and UAE, indicates that 37% of retailers plan to increase spending on AI shopping assistants in the next three years. Meanwhile, investment in once-standard digital components is declining, underscoring a strategic focus on AI as a competitive differentiator in product discovery and customer engagement.
Operator impact
Retail operators must balance evolving consumer expectations with efficient allocation of development resources. Although demand for features like cross-channel shopping and mobile apps remains robust, merchants are selectively reducing investment in these areas to support AI initiatives. This suggests a more nuanced approach to technology budgets, emphasizing AI’s ability to enhance product research and purchase decision-making.
The reported gap between consumer demand and merchant support for features such as price matching, loyalty programs, and free shipping highlights ongoing challenges. Operators serving key demographics—millennials, parents, and high earners—need to consider how to integrate AI shopping assistants without neglecting foundational conveniences that influence purchase completion across digital and physical channels.
What to watch next
As AI shopping assistants become more widespread, monitoring their actual impact on shopper conversion rates and customer satisfaction will be critical. Operators should watch for emerging best practices in AI integration that complement rather than replace core digital commerce services, ensuring a cohesive shopping experience.
Additionally, attention should be paid to how retailers adjust investments in adjacent technologies. For example, whether gaps in price matching and loyalty program availability narrow as AI adoption grows or if these disparities widen, potentially creating friction in customer expectations versus actual offerings.