Eighty-five percent of Australian shoppers would abandon their current retailer during the holiday season if an AI tool identified a better deal for the same item, new research indicates. This shift signals that customer loyalty may weaken as artificial intelligence increasingly shapes buying decisions.
A survey by supply chain technology firm Manhattan Associates reveals that 83% of Australians expect to use AI as part of their shopping activities in the coming months. The most common intended uses were comparing products, brands, and retailers (36%) and finding the best deals or lowest prices (35%). While cost remains a dominant factor, it does not override all other considerations.
Although 78% of respondents would verify an AI-recommended deal through a retailer’s website or other sources before buying, 52% still cite price accuracy as their main concern. These findings suggest that while AI accelerates discovery, trust in its suggestions remains conditional.
Despite AI’s growing role in discovery, most consumers prefer finalizing transactions directly with retailers. This pattern implies that AI’s function may be confined to filtering options rather than fully replacing conventional checkout methods.
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When comparing retailers offering the same product at the same price, 39% of respondents said nearby stock availability should determine the recommendation. Free delivery was cited by 28%, while faster fulfilment was preferred by 27%. The data shows that retailers must refine inventory management and logistics to remain competitive against AI-driven recommendations.
Seventy-five percent of Australians would be willing to share their location with an AI shopping assistant to find products available nearby. This openness to data sharing may compel retailers to integrate their systems with AI platforms—or risk losing customers to rivals who do.
Raghav Sibal, the Asia-Pacific vice president at Manhattan Associates, emphasized that discrepancies between AI suggestions and real-world availability could drive shoppers to competitors. “If the price doesn’t match, the product isn’t available, or the delivery timeframe isn’t suitable, the customer can easily look elsewhere,” he added. The need to align digital tools with physical operations has reached a critical point.
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