June 11. 2024, TORONTO |Traditional territory of the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples –
As the cost of living continues to rise, Canadians are turning to artificial intelligence (AI) and digital platforms to help make more informed purchasing decisions by identifying cheaper alternatives to costly products and services, according to the latest
EY Future Consumer Index.
"We’re seeing a shift towards independent consumerism, where people are actively seeking out information, making decisions and taking actions autonomously,” says Elliot Morris, EY Canada Grocery and Consumer Packaged Goods Leader. “With that, consumers are becoming more self-directed and tech-savvy in their shopping journeys – leveraging AI to discover savings and create convenience.”
AI at the forefront of consumer decisions
While only 18% of Canadians fully understand AI technology, 71% are actively using it on e-commerce platforms, and 61% believe AI will improve online shopping in the future. Trust in AI is also growing, with 61% trusting AI to offer tailored promotions and 53% trusting it to provide purchase reminders – a 6% increase since April 2023.
“To engage today's consumers effectively, retailers should continue to prioritize the integration of AI technologies,” explains Claudiane Boulay, EY Canada Consumer Marketing Leader. “But retailers can’t rely on AI alone. Earning a place in their customers’ circle of influence requires authentic and trustworthy connections, emphasizing the importance of human touch more than ever."
Trusting peers over brands
Forty-nine percent of respondents who follow an influencer do so because they create content that they find valuable, and 56% do so because they feel that the content reflects similar views to their own, providing consumers with a sense of community.
This trust is translating to purchases. The survey found that 61% of respondents have bought a product based on an influencer's recommendation, while only 21% responded to social media ads. Younger generations, particularly Gen Z (34%) and millennials (39%), are leading this trend.
“Because brands can't dictate influencer messaging, establishing an influencer network that maximizes return on investment will demand a delicate balance between trust and oversight to safeguard brand reputation,” suggests Boulay. “That’s why selecting influencers aligned with brand values and audience aspirations is crucial to be successful.”
Heighted concerns over data security
Recent data breaches and leaks are contributing to the rise of concern about data security. Concerns over ID theft have increased significantly, with 64% of respondents worried about ID theft, up from 51% in April 2023. Additionally, 60% of Canadians are now concerned about data security, marking a 9% increase since April 2023. A further 59% are concerned about the company they share their data with being hacked (up from 45%).
"Data security is paramount for consumer trust," emphasizes Morris. "Companies must be transparent about data use and invest in cybersecurity to reassure consumers and protect their information."
