AI Reshapes Retail and E-Commerce as It Shifts to Execution

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Artificial intelligence has moved from experimentation to execution in retail and e-commerce, fundamentally reshaping how consumers evaluate value, make purchase decisions, and engage with brands, said Alonso Yáñez, Vice President and Consumer Goods and Retail Leader for North LATAM, Capgemini, during a presentation on shifting consumer behavior in Mexico and global markets.

Yáñez drew on findings from Capgemini’s ongoing consumer study, conducted since 2022 and based on surveys of more than 12,000 consumers across 12 countries, including 1,000 respondents in Mexico. The research shows that trust, transparency, and intelligent digital experiences are now as influential as price in shaping consumer loyalty.

One of the strongest global triggers for brand switching is a perceived lack of transparency, particularly around product size and value. “When consumers realize they are getting less without being told, 71% globally are willing to switch brands,” Yáñez said, citing examples such as shrinkflation in packaged goods.

Mexico shows a more complex response. While 56% of consumers say they would change brands under similar circumstances, a significant share still tolerates these practices, reflecting a market that balances price sensitivity with growing awareness of unfair commercial behavior. Inconsistent pricing across channels—between apps, websites, and physical stores—was identified as a major source of frustration. “Omnichannel price inconsistency directly undermines trust,” Yáñez said.

The study also highlights how value perception varies by category. For essential goods such as food, household items, and school supplies, price remains the dominant factor. In contrast, consumers place greater emphasis on brand, quality, and emotional connection when purchasing non-essential items such as apparel, furniture, and personal care products. “In discretionary categories, consumers are deliberately trading price for meaning and quality,” Yáñez said.

Convenience, once a key differentiator in e-commerce, is undergoing a recalibration. While rapid delivery options—especially same-day and ultra-fast services—remain attractive, consumers are increasingly unwilling to pay significant premiums for speed. According to Yáñez, this shift is forcing retailers to absorb more logistics costs and rethink last-mile efficiency.

Inflation has also reshaped spending behavior, giving rise to what Capgemini describes as “selective indulgence.” Mexican consumers continue to seek small discretionary purchases as a form of emotional relief, but at lower rates than the global average. Only 56% of respondents in Mexico report indulging in these “small treats,” compared with 71% worldwide, indicating a more cautious consumption pattern.

Artificial intelligence. emerged as a central driver of change. While roughly 25% of consumers globally used generative AI shopping tools last year, adoption in Mexico already stands at 32%, with an additional 39% planning to use them soon. “Retailers are no longer engaging with consumers alone,” Yáñez said. “They are engaging with consumers augmented by AI.”

Despite growing adoption, consumers remain reluctant to pay directly for AI-powered services. Few are willing to accept subscription or usage fees, suggesting that AI will need to be integrated into the core customer experience rather than offered as a paid add-on.

Trust plays a decisive role in AI adoption. Consumers are more likely to rely on AI tools when recommendations are explainable and when they retain control over spending limits, categories, and decision parameters. Transparency, Yáñez said, is essential to building confidence.

Data privacy concerns persist but are comparatively lower in Mexico, particularly among younger consumers. Still, Yáñez highlighted a paradox: while personalization is valued, willingness to share sensitive personal data declines as data depth increases.

Social commerce is another area where Mexico outpaces global trends. Nearly half of Mexican consumers have purchased products through social media platforms, with TikTok leading adoption, followed by Facebook. The trend is reshaping how brands approach discovery, credibility, and conversion.

Despite rapid digitalization, human interaction remains a critical component of the shopping experience. More than 70% of consumers value in-store human engagement, and 83% of Mexican respondents said they feel comfortable with face-to-face customer service. “Technology is not replacing people,” Yáñez said. “It is amplifying their role.”

As loyalty strategies evolve, traditional points-based programs are losing relevance. Consumers increasingly expect personalized benefits, meaningful savings, and emotional engagement. “Loyalty today is about building long-term partnerships,” Yáñez said. “It is about trust, relevance, and shared value.”