New research from Algolia reveals that many Brits are ready to switch from conventional online supermarkets to third-party AI-driven shopping applications like ChatGPT. The UK online grocery market, valued at £23.4 billion in 2024, faces a potential loss of £500 million weekly if retailers do not adapt to this trend. Notably, 70% of consumers aged 25–34 are leading this shift, highlighting the need for supermarkets to improve their digital offerings. Bernadette Nixon, CEO of Algolia, emphasizes that nearly half of consumers utilize AI for household purchases. There’s a notable demand for supermarket-exclusive AI features; 42% of shoppers prefer supermarkets that offer smart tools like recipe ingredients finders. However, half of respondents have abandoned online shopping due to difficulties finding products, with 31% frustrated by lengthy scrolling. To retain customers, supermarkets must implement AI-powered search and conversational assistants to enhance the user experience.
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Grocery Retailers Face Weekly Losses of Millions Due to AI Shopping Tools — Insights from Retail Technology Innovation Hub
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