Coveo, a leading enterprise AI platform that integrates AI Search and Generative AI into every point of experience, has released its fifth annual Commerce Relevance Report, titled Can Can GenAI Bridge the Gap Between Online and In-Store Shopping? This report offers a deep dive into shopper behavior, expectations, and frustrations. To gather insights, Coveo collaborated with Arlington Research and surveyed 4,000 consumers from the U.S. and U.K. The findings highlight the convergence of online and in-store shopping, the importance of trust, and the rising influence of Generative AI (GenAI) in retail.

GenAI Is Reshaping the Shopper Journey

The research underscores that GenAI is becoming an essential part of the shopping experience. Notably, 62% of consumers say they are more likely to make purchases when guided by GenAI-driven recommendations. This trend is even stronger among younger generations, with 68% of millennials showing a higher preference for GenAI-assisted shopping.

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” Shoppers now expect GenAI to elevate their experience—making it more personalized, seamless, and insightful,” said Peter Curran, GM of Commerce at Coveo. “GenAI doesn’t replace search—it enhances it. By integrating seamlessly into key touchpoints like search bars, product pages, and shopping carts, it transforms how shoppers discover and select products. This ultimately strengthens the relationship between retailers and consumers while boosting conversions and revenue.”

Key Findings from the Report

  • Digital discovery drives purchase intent – 77% of shoppers research products online before making a purchase, even for in-store buys. A strong digital presence does more than drive online sales—it also fuels offline revenue.
  • Bad search experiences push customers away – 72% of shoppers leave an ecommerce site if they can’t find what they need quickly. When this happens, 53% turn to Google, and 36% go directly to a competitor. Younger shoppers and higher-income consumers are particularly quick to abandon sites that don’t meet their expectations.
  • Social media sparks interest but doesn’t always convert – 73% of consumers discover products on social media, but only 37% complete purchases there. Gen Z (58%) and millennials (54%) are more comfortable buying directly through social platforms, while older consumers prefer trusted ecommerce sites for their secure checkout, transparent pricing, and reliable product information.

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  • Experience matters more than efficiency – 58% of shoppers are willing to share personal data with brands they trust to receive better deals and personalized experiences. However, transparency around data usage is crucial. Consumers want to see clear benefits before they share information, and incentives only work when brands build trust first.

FAQs

1. Why is Generative AI becoming so important in shopping?

Generative AI enhances the shopping experience by providing more relevant and personalized recommendations. It helps consumers find the right products quickly and seamlessly integrates into search bars, product pages, and shopping carts, improving overall engagement and conversions.

2. How do bad search experiences affect ecommerce businesses?

Poor search experiences drive shoppers away. If they can’t find what they need quickly, 72% will leave the site—often turning to Google or competitors instead. This makes a strong search and discovery experience essential for retaining customers.

3. Are social media platforms replacing traditional ecommerce websites?

Not entirely. While social media plays a significant role in product discovery (73% of shoppers find products through social channels), only 37% complete their purchases there. Many consumers, particularly older demographics, still prefer ecommerce sites for their security, clear pricing, and trustworthy product information.

As Generative AI continues to shape the future of shopping, retailers that embrace this technology will stay ahead in delivering seamless, intuitive, and engaging experiences for consumers.

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