How Generative AI and Social Media Are Transforming Shopping Habits
Consumers worldwide are increasingly turning to generative AI tools and social media platforms to guide their purchasing choices, according to a Capgemini survey of 12,000 global shoppers. These technologies are not just supplementary tools but are becoming central to the shopping experience, reshaping how people discover, evaluate, and buy products.
Generative AI Takes Over Search
A major shift is underway as traditional search engines lose ground to generative AI tools like ChatGPT. Close to 60% of consumers now rely on these AI platforms for product recommendations, bypassing conventional search methods. This trend is especially strong among younger generations: about two-thirds of millennials and Gen Z, along with a slightly smaller share of Gen X, have embraced this change. Even 44% of baby boomers are jumping on board, though they lag behind their younger counterparts.
Shoppers aren’t just using generative AI for suggestions—they want it to do more. Over two-thirds expect these tools to pull together search results from diverse sources, such as online search engines, social media, and retailer websites, creating a one-stop hub for shopping insights. This reflects a growing demand for efficiency and consolidated information in the digital marketplace.
Social Media Becomes a Shopping Powerhouse
Social media has evolved into a vital resource for every stage of the shopping journey—from finding new products to finalizing purchases and interacting with brands. Last year, nearly one-third of consumers used platforms like Instagram and TikTok to both discover new brands and buy products, a jump from one-quarter in 2023. For Gen Z, the influence is even stronger: over two-thirds have stumbled upon a new product or brand via social media, and more than half have completed purchases directly on these platforms.
Beyond discovery and sales, social media serves as an information and support hub. Over 50% of shoppers occasionally turn to these platforms for product details and reviews, while 40% use them to reach out to retailers for customer service. This versatility highlights why social media is now a go-to channel for consumers seeking a seamless shopping experience.
Generational Trends and Preferences
The Capgemini findings spotlight Gen Z as a driving force in social commerce. Over half of this group has bought items through social media, a trend backed by other research. A Walmart and Morning Consult survey found that more than 50% of Gen Z have made online purchases while scrolling, and an ICSC study revealed that 85% say platforms like TikTok and Instagram shape their buying decisions. For retailers, this makes social media an essential pathway to connect with younger shoppers.
Meanwhile, generative AI’s appeal spans all ages. An Adobe survey found that nearly 60% of consumers feel it has already enhanced their online shopping, with two-thirds wanting brands to use their past purchases and personal data for tailored suggestions. This cross-generational enthusiasm signals AI’s broad potential to redefine retail.
What This Means for Retailers
The rise of generative AI and social media marks a turning point in how consumers shop. People are leaning on these tools for convenience, personalization, and a richer experience—whether that’s AI curating options or social media offering a direct line to brands. Retailers and businesses must adapt by integrating these technologies into their strategies, especially to capture Gen Z’s attention through social commerce and meet the wider demand for AI-driven personalization. As these platforms continue to dominate, they’re setting the stage for a new era of shopping that’s faster, smarter, and more connected than ever.