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Discover how AI, cybersecurity, and human interaction are reshaping online shopping and Irish consumer habits, as revealed by the EY Future Consumer Index.
In brief
- AI impacts Irish online shopping, yet scepticism remains due to lower understanding among consumers.
- Data privacy and cybersecurity fears are paramount among Irish consumers.
- The human element retains significance in e-commerce and customer service.
Around the world and here in Ireland, a digital revolution is transforming how people shop online, with artificial intelligence (AI) now leading the charge. But this acceleration in the role of emerging tech brings a complex challenge: balancing the innovative power of AI with consumer demands and concerns. The latest EY Future Consumer Index, surveying 500 Irish consumers reveals a mix of attitudes and expectations that are radically shaping the next wave of e-commerce.
The shifting habits of online shopping
The study shows the Irish consumer base in flux, 18% are buying more online than last year, 54% maintain the same, and 28% shop online less often, indicating a reassessment of the role of e-commerce. With affordability still front of mind for many Irish consumers, seeking value via online is evident, with 60% looking for discounts, 47% using shopping apps, and 42% joining rewards programs, indicating increased engagement for brands who offer benefits and discounts. Social media influencers are also significantly impacting consumer behaviour, with 39% of consumers interacting with them, 67% trusting them, and 58% making purchases based on their recommendations.
Perceptions of AI in E-Commerce
While more than 70% of the respondents are engaging with AI technology on e-commerce platforms, the perceived usefulness of this technology is notably lower for Irish consumers than their global counterparts. 54% of Irish consumers feel that AI-driven product recommendations in their shopping experience are not very useful, in stark contrast to just 32% globally.
Usefulness of AI-driven product recommendations in shopping experience
Furthermore, only 8% of Irish consumers believe that AI greatly enhances the online shopping experience, compared to 19% of consumers worldwide. This data suggests a more critical or perhaps underwhelmed view of AI's impact on e-commerce among consumers in Ireland, highlighting a potential disconnect between the capabilities of AI and consumer desires and expectations. Notably for retailers and consumer-facing businesses, this is a call to action to help consumers better understand the game-changing value that AI will deliver.
Extent to which AI is believed to enhance the online shopping experience
Privacy and trust in the age of AI
Consumer trust is crucial in today's digital era, unfortunately all too often marked by data breaches and identity theft. AI understanding is key to this, with 96% of Irish consumers aware of AI's role in their lives, yet only 16% have a good grasp of the technology, which is below the global average. This lack of AI literacy may be affecting trust, as seen in the low confidence Irish consumers have in AI when it comes to financial management (70%), marketing photo enhancement (71%), and medical advice (66%). Conversely, 65% trust AI for personalised promotions and online deals.
Cybersecurity concerns
Privacy concerns are paramount, with a significant 72% of consumers cautious about sharing data with brands, signalling that businesses must work to earn trust amidst prevalent data breaches and identity theft. Moreover, cybersecurity fears are elevated, with 83% of consumers stating they would not continue membership, subscription or contract with an organisation who experience a major cyber breach. Specific concerns include identity theft (60%), viruses (59%), and selling information to third parties (58%), emphasising the urgent need for strong digital defences to safeguard consumer trust.
Concerns when engaging online
Consumer businesses most respond to these growing digital threats, whilst again utilising impending legislation. An example of such legislation includes the NIS2 Directive, which offers a chance for many businesses to enhance cybersecurity and comply with regulations. Adopting cyber risk management and reporting guidelines can help organisations improve their defences against cyber threats and build consumer trust.
Data sharing and the human touch
When it comes to data sharing, a considerable 39% are unwilling to part with their information for recommendations, deals, and advertisements, highlighting a desire for privacy over personalisation. Conversely, 50% are open to sharing anonymous data if it leads to cheaper products, suggesting a nuanced approach to privacy that balances affordability with confidentiality.
The human touch remains a cherished element in the digital realm, with 64% of Irish consumers preferring online platforms that offer human customer service support. This preference is particularly pronounced for addressing post-purchase issues, returns, and refunds, indicating that AI cannot fully replace the empathy and understanding of human interaction.
Summary
In conclusion, the latest EY Future Consumer Index shows Irish consumers are at a crossroads, embracing the convenience of AI while seeking the need and reassurance of human connection throughout the consumer journey. As consumer-facing businesses and policymakers chart a course through this digital landscape, they must navigate the AI paradox with a focus on consumer trust, privacy, and the irreplaceable value of the human touch.