More than three-quarters of Australians now trust artificial intelligence shopping recommendations as much as or more than advice provided by retail sales assistants, according to new research commissioned by Manhattan Associates.
The findings indicate that 47% of Australians trust AI guidance over in-store staff, while a further 29% place equal trust in both sources, highlighting a structural shift in how retail teams must deliver value.
The research shows that consumer discovery habits are evolving rapidly. Nearly a quarter of Australians (23%) now turn to AI as their primary information source when researching significant purchases, compared to just 7% who consult an in-store sales assistant first.
Overall, 83% of Australians have utilised AI tools such as ChatGPT, Gemini, or Copilot for shopping research, with 36% employing them on a regular basis.
"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," said Raghav Sibal, APAC vice president at Manhattan Associates. "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." Raghav Sibal
Convenience and value remain the principal catalysts for adoption. Among respondents opting for AI over sales staff, 42% cited 24/7 availability, followed by speed (20%) and simpler product comparisons (19%). Supporting data from PayPal shows price comparison is the leading application, with 57% of AI users stating the technology helps them save money.
Despite the proliferation of AI, consumers continue to engage direct retail touchpoints: 84% remain likely to browse a retailer's website, and 81% still plan to visit physical stores.
"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."
"As AI becomes more influential earlier in the journey, retailers need to ensure they deliver a connected experience through to purchase," concludes Sibal.
