A new study by SCAYLE has uncovered growing discomfort among U.S. shoppers toward the increasing use of AI in retail, particularly facial recognition and AI-generated content. The research, which surveyed over 1,500 consumers, shows that 71% are uneasy about certain AI tools used by retailers, signaling a mismatch between tech investments and customer expectations.
While many brands are banking on AI to drive customer engagement, shoppers are becoming more skeptical. Only 18% of respondents said they were fully comfortable with AI features in retail. Facial recognition caused the most concern, with 32% reporting unease. Other commonly criticized tools include AI-created product images and AI-powered chatbots, each making 30% of shoppers uncomfortable.
AI Is Welcome for Service, Not Surveillance
Interestingly, the study reveals that consumers are not entirely against AI—they just prefer it in limited, practical roles. About 25% said AI positively impacts customer service, and 19% noted that AI improves product discovery. However, convenience features like voice commerce and virtual shopping assistants were seen as less impactful, with only 8% ranking them as top benefits.
This shows that consumer attitudes toward AI are more nuanced than outright rejection. Daniel Fertig, Director of Partnerships at SCAYLE, explains:
“Shoppers’ concerns go beyond cost. Retailers must understand that consumers want AI to improve service, not replace the human touch or invade privacy.”
Price, Quality, and Trust Still Rule
The findings also point to shifting priorities in consumer behavior. While AI is becoming part of the retail landscape, shoppers continue to focus on traditional decision factors:
- 53% of respondents prioritize product quality
- 38% look for competitive pricing
- 31% value good customer service
Brand loyalty is waning too—one in three shoppers now place price above brand loyalty. Meanwhile, 49% of shoppers expect regular discounts in loyalty programs, and 36% want added benefits like free shipping or buy now, pay later options.
This suggests that shoppers are more responsive to tangible value than futuristic tech gimmicks. Retailers adopting AI shopping tools must align them with what customers genuinely want—affordability, trust, and convenience.
Omnichannel Experiences Still Matter
Another important finding is the sustained interest in flexible and omnichannel shopping. Although 57% of shoppers prefer a combination of in-store and online shopping experiences, “buy online, pick up in store” (38%) and “buy online, return in-store” (37%) were listed as the most valued.
Also, payment flexibility is invaluable. A substantial 76% of online shoppers say they may abandon their carts if their preferred payment method is not available. Retailers should not consider this as a “nice-to-have” when they can offer payment flexibility—it is now an intrinsic part of the retail experience.
AI Must Fit Into a Bigger Strategy
As the retail sector braces for economic pressures like inflation and tariffs, investments in AI must be targeted and transparent. The SCAYLE study underscores a critical takeaway: AI should support—not overshadow—the fundamentals of retail.
With awards like the RTIH AI in Retail Awards recognizing innovative uses of AI in real-world applications, it’s clear that 2025 will be a defining year. But success will come to those who blend innovation with empathy, offering customers the tools they value—without compromising trust.
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