--- title: "Retailers Embracing Artificial Intelligence Technology for Enhanced Shopping Experience" url: https://newscentral.site/retailers-embracing-artificial-intelligence-technology-for-enhanced/ language: en publisher: "News Central Site" section: "Science" published: 2026-10-14T11:40:06.000Z updated: 2026-10-14T20:48:30.168Z id: 0ff6374a-f27d-4902-815e-0e3d32b6ce87 source: "Phys.org https://phys.org/news/2026-10-ai-revolution-backfire-retailers.html" attribution: "Link to https://newscentral.site/retailers-embracing-artificial-intelligence-technology-for-enhanced/ and name News Central Site when you quote or summarize this story." --- # Retailers Embracing Artificial Intelligence Technology for Enhanced Shopping Experience A new assessment framework was developed to evaluate customer acceptance of AI-enabled retail services, with results revealing multiple facets that influence adoption. Retailers are increasingly embracing artificial intelligence (AI) technology, hoping it will revolutionize their shopping experience for customers. An AI-powered assistant that can answer questions at any hour and offer personalized recommendations may seem like a dream come true for both businesses and consumers. However, the reality is often far from perfect. A customer who asks an AI assistant about purchasing a laptop for college might receive an immediate and confident response, but it could overlook a crucial software requirement that's essential for the device to function properly. In some parts of the world, conversational shopping is becoming increasingly common in mainstream retail. For instance, Australian retailers Bunnings and Woolworths have introduced AI-powered assistants called Buddy and Olive respectively, which can help customers research products and compare options. These AI systems are still in their infancy, and it's unclear whether they will actually deliver on their promises to improve the shopping experience for consumers. Retailers claim that these systems are designed to provide assistance, but that doesn't necessarily mean every shopper will have a positive interaction with them. As AI technology continues to evolve, its potential pitfalls are becoming more apparent. With AI shifting from simply answering questions to taking action, the stakes are higher than ever before. A mistaken recommendation can be inconvenient, but a mistaken purchase or an unwanted disclosure of personal information could have serious consequences. Our research team sought to bridge the gap between the capabilities of AI-powered retail services and customer confidence in using them. This disparity is a critical issue for retailers, as it can hinder the adoption and effectiveness of these innovative tools. We developed a new assessment framework to evaluate how customers accept AI-enabled retail services, which was tested across eight studies. The results revealed that acceptance has multiple facets, including personalization, accuracy, safety, speed, convenience, humanization, friendliness, and emotionality. These dimensions are essential in determining whether customers find the experience useful, reliable, and manageable. One key finding is that an AI tool can excel in some areas but fall short in others. For instance, it may process transactions quickly but struggle with accuracy or provide a friendly interface while compromising on personal data security. This highlights the importance of balancing technological capabilities with customer needs and preferences. Our analysis showed that higher overall acceptance of AI services is linked to increased word-of-mouth promotion, usage rates, willingness to pay, and likelihood of adopting these services. The assessment framework we developed performed well in predicting customer behavior compared to established alternatives. This has significant implications for retailers, who need to understand not only whether customers are using their new tools but also why they do or do not accept them. The importance of reliability in AI-powered retail services is underscored by the experience of McDonald's, which ended a U.S. trial of AI-powered drive-thru ordering in 2024 after reporting mixed results and customer complaints about incorrect orders. While this example is not directly related to our study, it serves as a cautionary tale for retailers seeking to implement innovative technologies while prioritizing customer satisfaction. Retailers seeking to implement AI shopping assistants can take proactive steps to gauge customer satisfaction and identify areas for improvement. One approach is to solicit feedback on specific aspects of the service, such as accuracy, safety, speed, and overall quality. This can be done through surveys or comparisons between different versions of the assistant. Researchers have developed a 32-item measure that enables detailed diagnosis of shopping assistant performance. A condensed version with eight items is also available for quicker assessments. The goal is not to burden customers with lengthy questionnaires, but rather to provide businesses with evidence-based insights on where improvements are needed. The dimensions outlined in this research do not represent a one-size-fits-all solution. Rather, they serve as a framework for evaluating the effectiveness of AI shopping assistants and identifying potential areas of improvement. By understanding how different design flaws can impact customer acceptance and behavior, retailers can prioritize their efforts accordingly. Customer experiences with shopping assistants can be influenced by various factors, including the nature of the interaction and the specific stage at which it occurs. For instance, a misleading product detail encountered during browsing may have different implications than a poorly handled complaint or a privacy concern raised during checkout. Recognizing these nuances is essential for retailers seeking to optimize their AI-powered services. Retailers must also acknowledge that customers are more likely to notice certain types of failures at specific moments in the shopping process. By measuring these experiences separately, managers can gain a better understanding of the underlying weaknesses and take targeted steps to address them before they become ingrained in the brand's reputation. Retailers adopting AI technology too quickly may be putting their business at risk if customers do not find these services accurate and safe. To avoid this backfire, retailers need to measure customer experience separately from adoption rates, focusing on whether customers find the AI-powered shopping experiences worth returning to. This requires a more nuanced approach than simply tracking how many customers use AI-enabled features. By doing so, managers can identify underlying weaknesses in their brand's reputation and take targeted steps to address them before they become ingrained, ultimately ensuring the success of the AI shopping revolution. --- Source: [Phys.org](https://phys.org/news/2026-10-ai-revolution-backfire-retailers.html) Published by News Central Site: https://newscentral.site/retailers-embracing-artificial-intelligence-technology-for-enhanced/