Manhattan Associates has released research showing that 85% of Australians would switch retailers if artificial intelligence found the same product at a lower price elsewhere, highlighting rising pressure on retailers during the peak shopping season.
The survey of 500 Australian consumers also found that 83% expect AI to play a role in their shopping activities over the coming months. The most common expected uses were comparing products, brands and retailers, cited by 36% of respondents, and finding the best deals or lowest prices, named by 35%.
The data suggests AI tools could reshape retailer loyalty, particularly during Black Friday and the Christmas trading season, when discounts are widespread and price comparisons are easier. Australians spent a record AUD $23.8 billion over the extended Black Friday shopping period last year, according to CommBank iQ, underlining the scale of the market retailers are competing for.
Raghav Sibal, Vice President APAC at Manhattan Associates, said retailers could no longer assume existing customer relationships would be enough to secure sales if AI tools make price comparisons more immediate.
“AI is giving consumers another way to compare retailers, and that could make it harder for businesses to rely on established customer loyalty. If a shopper can find the same product for less elsewhere, they may be more willing to consider a retailer they haven't purchased from before,” Sibal said.
While lower prices may attract attention, the research indicates shoppers still want to verify information before buying. Nearly eight in 10 respondents, or 78%, said they would check an AI-recommended deal against a retailer's website or other sources before making a purchase.
Price accuracy was the main concern among those planning to double-check deals, with 52% saying they would be most likely to verify whether the advertised price or discount was correct. Another 23% would check product information and reviews, while 20% would focus on delivery times or costs.
Checkout choices
The results also show that retailer-owned digital channels remain central to the final transaction. While 35% of Australians said they would be comfortable completing a purchase directly through an AI shopping assistant, 53% would prefer to complete the transaction with the retailer.
That split suggests AI may play a growing role at the discovery stage without replacing the retailer's website or app as the preferred place to complete an order. For merchants, the handover from AI recommendation to direct purchase could become a more important point in the customer journey.
Stock matters
Price was not the only factor shaping consumer choice. When respondents were asked what should determine an AI recommendation between retailers offering the same product at the same price, nearby stock availability ranked first at 39%.
Free delivery followed at 28%, with faster fulfilment next at 27%. The findings indicate that when price is equal, operational factors such as where goods are held and how quickly they can be delivered may carry more weight than brand preference alone.
Consumers also appeared open to sharing personal data if it improved their chances of finding available products. Three in four respondents, or 75%, said they would share their location with an AI shopping assistant to identify nearby stock.
That willingness could make local inventory visibility more important for retailers trying to capture demand through AI-led product searches. It also points to the growing importance of connecting online shopping tools with store-level stock information.
Sibal said retailers still need to meet customer expectations after attracting them through an AI-generated recommendation.
“Price is only one part of the purchasing decision. Retailers also need to make sure the product is available, the delivery options are convenient, and the overall experience gives customers confidence to complete their purchase,” he said.
The research suggests retailers entering the peak shopping period may face pressure on several fronts at once: sharper price competition, more transparent comparisons, and higher customer expectations around availability and delivery. AI shopping tools may widen the field of competitors shown to consumers, especially when the same product is sold by multiple merchants.
At the same time, the findings imply conversion will still depend on fundamentals such as accurate pricing, reliable inventory data, and fulfilment options that match shopper expectations. An AI recommendation may bring traffic, but it does not guarantee a sale.
“An AI recommendation might bring a customer to a retailer's website, but the retailer still needs to deliver on what that customer expects. If the price doesn't match, the product isn't available or the delivery timeframe isn't suitable, the customer can easily look elsewhere.
“During peak shopping periods, retailers need accurate inventory information across their sales channels and flexible fulfilment options to meet changing customer demand. Getting these fundamentals right will be important to converting AI-driven interest into sales, regardless of where a customer begins their shopping journey,” Sibal said.