Artificial Intelligence has usurped cost-of-living as the dominant topic in society, the marketplace and the economy.
And now, the latest incarnation, AI shopping intelligence and technology, are marginalising the direct presence, roles and influence of consumers.
A small but growing segment is evolving in North America. Consumers are briefing and authorising artificial intelligence to search, find, engage with, purchase, and arrange delivery for products, services, and applications.
However, there are notable limitations and pushbacks.
In general, consumers enjoy and, in many instances, prefer visiting bricks ‘n’ mortar stores, interacting with frontline service providers and touching, smelling and personally selecting specific purchase items.
What they dislike most is waiting in queues, whether on the phone, online, or at premises. These can involve hours with little prospect or guarantee of success in completing a purchase.
BEST SEATS IN TOWN
Of particular relevance to AI shopping agencies (or agentic purchasing) are tickets to major events, such as Taylor Swift concerts, NRL State of Origin matches, and Formula 1 racing. Time-specific and limited opportunities, including Black Friday sales, Click Frenzy offerings, Cyber Monday, and Boxing Day discounts, also have relevance and potential application and advantages of an AI shopping agency.
TARGETED CRITERIA
Consumers can nominate specific details, including price ranges, models, brands, style, colour, dates, seating locations, and prioritised value packages.
Accordingly, AI-driven purchasing has greater relevance to non-discriminatory packaged goods than to the subjective, emotive, and nuanced selection of fashion, stylistic, and fresh food options. Red is not red. Ask Ferrari.
BETTER VALUES
Currently, AI agent sales account for less than 3% of the market share in most categories. Awareness, acceptance and preference of the concept are limited.
Moreover, time has premium value for some, but not all. The larger platforms of Amazon, Google, and TikTok have the capacity, but a reluctance to promote the offering, lest they lose control of their supply chains.
Larger global, national and regional retail groups have been reluctant and slow to embrace the principles and therefore capitalise on the opportunities. Their algorithms can’t interact with and conclude transactions with many of the AI agent contacts.
Throughout Australia, Europe, and North America, established mortar retail operations are sensitive to, and fearful of evolving into figurative fulfilment centres in which direct contact with their customers and clients is restricted, limited or non-existent.
In such cases, repeat business recommendations, referrals, advocacy, and lifetime values will be redundant. Exposure to such prospects of leakage, shrinkage and obsolescence is daunting.
ANOTHER DAY, ANOTHER USE
AI shopping agents are another example of the emerging possible uses of artificial intelligence. Many of the foreseen consequences and costs for the current and potential participants are not quantifiable and represent existential risks for some.
A fundamental issue extends beyond the content and capacity of artificial intelligence. That is the context in which AI agencies fit into the business models of countless, differing, and in many cases, long-established entities.
In all probability, this will be another case study where capital outlays for an AI shopping agency (agentic purchase) will not be matched with investments in internal capabilities. That is, the potential will never be fully realised because of existing philosophies, cultures, purposes, practices and people.
By Barry Urquhart – Conference Keynote Speaker | Marketing Focus
