Generative AI moves closer to handling online purchases

Generative AI is moving deeper into consumer shopping, expanding from product discovery and research toward tools that can complete purchases on a shopper’s behalf, according to McKinsey. The shift is being shaped by AI upgrades and continued cost-consciousness among consumers, creating what the firm calls a new tech-driven path to purchase.

Younger shoppers are leading adoption. McKinsey’s consumer survey found that 28 per cent of Gen Zers are already using gen AI tools for shopping, compared with 16 per cent of baby boomers. It also found that 60 per cent of Gen Z consumers regularly use the “AI overview” at the top of traditional search platforms, versus 29 percent of baby boomers. Social media has become the most important channel for Gen Z across the shopping journey, though trust remains a factor, with Gen Z reporting lower levels of trust than baby boomers.

Search is also changing as AI-generated summaries and conversational interfaces become more common. Overall open web traffic has declined by 8 per cent since 2023, while traditional search continues to play a significant role. McKinsey said Shopify, Amazon and Walmart are aligning around common standards for AI-enabled transactions, setting up agentic commerce and a “dual front door” in which consumers buy through retailer AI tools or gen AI platforms.