Australian shoppers trust AI more than sales staff

Manhattan Associates has released research showing many Australian shoppers trust AI recommendations as much as, or more than, advice from retail sales staff. The findings point to a shift in how consumers research purchases.

The survey of 500 Australian consumers found that 76% trust AI shopping recommendations at the same level as, or more than, advice from a retail sales assistant. Of that group, 47% said they trust AI more than retail staff, while 29% place about the same level of trust in both.

The results also suggest AI is becoming an earlier stop in the shopping journey. Nearly one in four respondents, or 23%, said they use AI as their first source of information when researching a significant purchase, compared with 7% who first seek advice from an in-store sales assistant.

Use of the technology appears widespread. More than four in five Australians surveyed, or 83%, said they had used an AI assistant such as ChatGPT, Gemini or Copilot for shopping research, and 36% said they do so regularly.

Changing role

The findings suggest AI is taking on some of the product discovery and comparison work shoppers once relied on store staff to provide. That shifts the role of sales assistants, particularly when customers enter a shop having already reviewed prices, alternatives and product details.

Raghav Sibal, APAC Vice President, Manhattan Associates, said consumers are arriving better informed than before.

"Consumers are using AI for product discovery, to compare options and inform their purchasing choices. These are some of the many things they might previously have relied on a retail sales assistant for," Sibal said.

Retail staff still have a role, he said, but one that now depends more on adding value beyond basic information.

"This doesn't make retail staff irrelevant, but it does change what customers expect from them. Shoppers might now arrive in-store already knowing which products they are considering, what alternatives are available and what they expect to pay. Retailers and their teams need to be ready to add value beyond information the customer can now find for themselves."

Value and convenience

The research points to convenience as a major reason shoppers turn to AI rather than staff. Among those surveyed, 42% said they would choose AI for its round-the-clock availability, 20% cited speed, and 19% said it made comparing products easier.

Price is also part of the picture. Separate research from PayPal, cited alongside the Manhattan Associates findings, found that price comparison is now the most common way Australians use AI when shopping, with 57% of AI shoppers saying the technology helps them save money.

Those habits are likely to shape what shoppers expect from retailers once they move from research to purchase. If customers can quickly narrow options and benchmark prices before visiting a shop or website, any mismatch in stock, delivery or pricing becomes more visible.

This increases pressure on retailers to ensure the buying process matches the confidence AI gives shoppers during the research phase, Sibal said.

"AI can make it easier for consumers to reach a decision, but that puts more pressure on retailers to deliver when they move from research to purchase. Knowing a product exists isn't good enough. Customers need to know whether it's available, where it's available, what it will cost and how quickly they can get it."

Retail channels remain

Despite AI's stronger role in product research, the survey suggests retailer-owned channels still matter. Even if AI could answer every product question accurately, 84% of respondents said they would still be likely to visit a retailer's website before buying, while 81% said they would still be likely to visit a physical store.

That suggests AI is not replacing shops or retail websites, but reshaping the path consumers take before reaching them. For retailers, the challenge may be less about competing with AI itself and more about ensuring stock information, pricing and fulfilment are consistent when the shopper is ready to act.

The final transaction remains the point at which retailers can still lose a customer, Sibal said. "AI can help a customer decide what they want, but it can't compensate for a poor experience when they are ready to buy. If the price they find is different, the product isn't available or the fulfilment options don't meet their expectations, retailers still risk losing that customer at the point that matters most."

He said the growing use of AI early in the buying process puts more weight on execution later in the journey. "As AI becomes more influential earlier in the journey, retailers need to ensure they deliver a connected experience through to purchase. Consumers are arriving better informed and with clearer expectations, putting greater importance on the retailer's ability to turn that intent into an accurate and reliable purchase and fulfilment experience."