Gen Z shoppers embrace AI but switch brands over trust

SAP Engagement Cloud has published UK research showing that Gen Z shoppers are adopting AI in retail while also switching brands over how it is used. The findings highlight a sharp tension between adoption of AI tools and consumer trust.

The survey of 2,000 UK consumers found that 48% of Gen Z respondents had bought a product recommended by AI, while 37% said they would trust an AI assistant to make a purchase on their behalf. Yet 43% said they had changed brands because of how AI was used.

This makes younger shoppers one of the most active groups using AI during the buying process, but also one of the quickest to penalise companies when the technology appears intrusive, opaque or mishandled. The data suggests retailers cannot assume enthusiasm for digital tools will automatically translate into stronger loyalty.

Across the wider UK consumer base, 23% said they regularly rely on AI tools or assistants when deciding what to buy. Some 26% said they had purchased products recommended by an AI assistant, and 23% said they would be comfortable letting an AI assistant buy on their behalf.

The figures suggest AI is moving from a marketing experiment to a more routine part of shopping decisions. Recommendation engines, automated assistants and personalised prompts are increasingly shaping what consumers discover and choose, particularly among younger age groups.

Trust gap

The study also found signs of caution among Gen Z. Nearly two in five, or 37%, said they wanted access to human support if something went wrong. Another 32% wanted assurances around data privacy and security, while 29% wanted transparency about how AI-driven decisions are made.

A quarter of Gen Z respondents said undisclosed or non-transparent use of AI would cause them to lose loyalty to a brand altogether. That suggests disclosure and clear communication may be as important as the underlying technology itself.

The research points to a narrow margin for error when brands use AI in customer-facing roles. A recommendation that feels relevant may be welcomed, but a system that acts without explanation or appears to misuse personal data can quickly undermine trust.

There were also signs that some uses of AI and personalisation can strengthen ties with customers. Among Gen Z respondents, 15% said they were more loyal to brands that use AI to improve the shopping experience, while 21% said they felt more loyal to brands that market to them in a personalised way.

Those figures are lower than the share willing to use AI recommendations, reinforcing the gap between adoption and attachment. Consumers may accept or even prefer AI support in certain situations without becoming more committed to the brand behind it.

Broader shift

The data also suggests AI is starting to rival traditional sources of influence in retail. Nearly a quarter of UK shoppers, or 23%, said they would prefer recommendations from AI over advice from friends and family.

This marks a notable shift in how purchasing decisions are shaped. Word of mouth has long been treated as one of the strongest influences on buying behaviour, yet AI tools are now carving out a comparable role by filtering options, ranking products and tailoring suggestions to individual users.

For brands, the findings add pressure to balance automation with accountability. Retailers and consumer businesses have invested heavily in AI-led personalisation, customer service chatbots and recommendation systems in the hope of lifting conversion and improving retention. The survey suggests those systems may drive engagement, but not if consumers feel they have lost visibility or control.

The study was conducted by Opinion Matters across the UK, the US, Hong Kong and Germany, with 10,002 consumers surveyed overall. The UK results were based on 2,000 respondents, including a Gen Z sample of 252.

Commenting on the findings, Sara Richter, chief marketing officer at SAP Engagement Cloud, said: "Gen Z isn't rejecting AI. They're embracing it faster than any other generation and increasingly allowing it to influence what they buy. The surprise is that greater adoption does not translate into greater tolerance. Gen Z is willing to trust AI with recommendations and even purchasing decisions, but they expect brands to be transparent about how it is used. Brands that fail to earn that trust risk losing customers just as quickly as they gain them."

Marketing professor Mark Ritson also commented on the results: "There's a tendency to assume that because Gen Z loves technology, they'll tolerate anything brands do with it. The data suggests the opposite. They're embracing AI rapidly, but they're also proving to be the least forgiving when brands get it wrong."