Shoppers contemplating leveraging social and generative AI for their purchasing decisions
In the ever-evolving world of retail, two emerging trends have caught the attention of consumers and businesses alike: social shopping and the use of generative AI.
According to a survey by Walmart and Morning Consult, over half of Gen Z have made an online purchase while on social media. This trend is mirrored in the fashion industry, where individuals are using social media not only to browse but also to buy products and identify new brands.
Data from Capgemini reveals that both generative AI and social media are the top sources for purchase decisions. Nearly 3 in 5 consumers have replaced traditional engines with generative AI search tools, while nearly a third of shoppers report using social media for purchases.
However, a study by KPMG's summer 2025 consumer pulse survey paints a different picture. Nearly two-thirds of consumers have not used AI shopping tools and do not plan to. Similarly, over half of survey respondents say they have not used social shopping tools and don't plan to.
The hesitation among consumers can be attributed to concerns about privacy and trust in technology, as stated by Sam Ganga, KPMG's consumer and retail AI data and cloud leader.
In an effort to address these concerns, brands are encouraged to increase transparency and privacy controls, showing shoppers the benefits of sharing their data.
Meanwhile, QVC Group, formerly known as Qurate, has recently shifted its strategy to target social shopping and livestreaming across TikTok, Facebook, and YouTube among other platforms. This change in strategy was first implemented in 2021, and users on TikTok averaged $708 in spending on the social media app's e-commerce offering last year.
Fashion companies, too, are embracing this trend. They create influencer kits to make it easy for individuals to express a fashion sense while monetizing it through social platforms.
Despite the growing trend, not all consumers are comfortable with generative AI analyzing their personal online data. Only 34% of KPMG survey respondents describe themselves as comfortable with the technology, while 43% express discomfort due to privacy concerns.
As these trends continue to evolve, it's clear that businesses and consumers alike are adapting to a new shopping landscape, one that blurs the lines between browsing and purchasing, and where generative AI and social media play a significant role.
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