Future Consumer Index: Fading allure of AI, experiences & store brands
In the 13ᵗʰ edition of the EY US Future Consumer Index, consumers reassess feelings on AI, consumer experiences and private label products.
In brief
Have consumers moved on from the AI hype, or are companies still behind the 8-ball in mastering it to expectations?
Have consumer experiences become eroded, or are consumers not getting the experiences they desire or expect?
Has the store brand moment passed, or has it normalized so much that consumers no longer delineate between brand and private label?
The last year can be summed up for consumers by a few main trends. ChatGPT popped on the scene, making GenAI the innovation that every company, business leader and consumer had to master. The ladies – Beyoncé, Barbie and Taylor Swift – defined our summer, fall and winter experiences. And let’s not forget the economic pressures that, though consumers continued to spend through as indicated by increasing credit delinquencies and depleted savings, had us finding ways to stretch our dollar.
In the 13th edition of the EY US Future Consumer Index, consumers reassess how they really feel about the trends that defined the last 12 months. Our previous edition found consumers redefining affordability, loyalty and trust in the age of AI. While those themes still ring true, the shininess of AI may be wearing off, at least for consumers. And it doesn’t stop there, with preference for experiences and private label also tapering. Are these trends losing their luster, are retailers and brands just not living up to consumer expectations, or has the hype cycle simply leveled out?
Consumer expectations and the AI trust gap
AI is fundamentally changing the face of consumer products and retail, with use cases that span the business, from the consumer-facing experience to back-of-house supply chain dynamics. And retailers and brands are investing significant time and money into this new technology. However, while the increments are small, consumer trust in AI-generated things has slipped. With an innovation like this, you expect the trajectory to continue upward, so even slight declines warrant a second look.
What’s even more interesting are the discrepancies between global and US consumers. Americans say that they have more of an understanding of AI but trust it less than global consumers. Twenty percent of US consumers have a good understanding of AI, slightly down from 22% in May. By comparison, only 18% of global consumers say the same.
