Artificial intelligence, retail media and social commerce are increasingly influencing how consumers discover and buy products, with nearly three-quarters of shoppers now using AI during product discovery, according to new research from NielsenIQ (NIQ).
The findings come from NIQ's latest global report, A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption, produced in collaboration with World Data Lab.
The report highlights how the traditional path to purchase is becoming increasingly fragmented, with consumers using a growing number of digital channels and tools to research products, compare options and make purchasing decisions.
Nearly 75 per cent of shoppers now use AI during product discovery, while 20 per cent already use AI as part of the wider shopping process.
Retail media has also developed into a $184billion (£136bn) global market, giving brands and retailers another increasingly influential channel through which to reach shoppers.
Social commerce is showing significant regional differences. Nearly one-third of Western consumers have purchased a product after discovering it on a social platform, while almost 60 per cent of consumers in APAC shop through social and quick-commerce channels. By contrast, 68 per cent of North American consumers have never purchased through social media.
Troy Treangen, chief AI & product officer at NIQ, said purchasing decisions were now being made “earlier and through more channels than ever before”.
“AI-powered recommendations, retail media, and social commerce are increasingly influencing which products consumers discover, consider, and ultimately purchase, creating entirely new opportunities—and challenges—for brands,” he said.
Discoverability becomes key
NIQ said AI-powered tools are increasingly helping consumers decide where to save money, where to trade up and which brands merit consideration.
This makes product discoverability increasingly important for manufacturers and retailers. As AI recommendations become more personalised, brands that fail to optimise product information, digital shelf presence and online visibility risk becoming less prominent in consumers' shopping journeys.
The report suggests AI is moving beyond its role as a search or research tool and becoming an increasingly influential part of the decision-making process.
For retailers and suppliers, this creates opportunities to use data and digital tools to identify consumers most likely to respond to premium positioning, promotions and personalised offers.
The findings also complement NIQ's research on the changing role of private label. In the same report, NIQ found that consumers are increasingly willing to switch between national brands and private label depending on their needs, budget and perceived value. 58 per cent said they do not care whether a product is a national brand or private label, while 69 per cent viewed private label as offering good value for money.
Taken together, the findings point to a retail environment in which both brand loyalty and the traditional path to purchase are becoming less fixed, with shoppers increasingly choosing products based on the value proposition presented to them at the moment of decision.