Consumers are not Hiding their Fear of the Development of Generative AI

The introduction of artificial intelligence (AI) technology in different areas of life and everyday business tasks is already a reality. But this reality is not being received in the same way by everyone.

Consumers, for example, are concerned about its progress. Up to 80% of the thousands of people consulted by PwC in its Voice of Consumer Survey 2024 report, representing more than thirty countries, including Spain, declare their concern about future developments in generative AI.

What exactly are they afraid of? The possibility of suffering a cyber attack or being hacked, according to 48%. Other reasons they cite are access to their personal data (42%), poor regulation (40%) and the spread of false information (40%).

Privacy is an important issue. In fact, 83% say that the protection of their personal data is a major factor in how brands can gain their trust. As many as 8 out of 10 demand assurances that they will not share it with third parties.

But it’s not all about concerns about AI. Half of the respondents already use generative AI for simple or low-risk tasks. This includes functions such as gathering information about a product before buying it, receiving recommendations and engaging with customer services.

However, another half (49%) demand to keep the human factor if the chatbots provided by brands are not able to respond satisfactorily to their needs.

Consumers’ opinions are relevant, as the market will continue to grow over the years. Currently the global market is 4 billion consumers or people spending at least $12 a day; by 2031 it is expected to reach 5 billion.

Brands must gain and maintain their interest amid technological disruption. Alongside respect for their data, another pillar should be sustainability. To reduce their environmental impact, 46% of consumers are increasingly buying sustainable products and 43% think twice before making a purchase.

People are now willing to pay 9.7% more on average for locally produced products, made from recycled materials, biodegradable and that go through low-carbon supply chains.

“We are at a time when it is crucial to build trust across the board,” observes Roberto Fernández Humada, Partner in charge of Retail and Consumer at PwC, “consumers are no stranger to this. We need to improve consumer confidence in the market, in brands, in the product, in the use of their data, in their transactions and the satisfaction of their needs”.

Regarding the shopping channel, the physical shop continues to lead the way. Forty per cent of people go to these establishments on a daily or weekly basis. Meanwhile, 34% rely on their smartphone, 23% shop from a computer and 15% do so with a tablet.

The PwC study detects a growing impact of social networks when it comes to shopping, as a source of information and brand recognition. Forty-six per cent of consumers buy products directly from these platforms. In addition, 67% use them to learn about new brands and 70% to learn about recommendations before making a purchase decision. The opinion of influencers resonates with 41% of them.