86% of Online Shoppers Believe AI Tools Should Be Regulated Amidst FTC Investigation
Despite the demand for AI regulation, 45% of online shoppers are willing to give up personal data in exchange for more personalized eCommerce experiences, according to Capterra survey
As the FTC probes OpenAI over consumer protection law violations, new research indicates that consumers are just as concerned and demand regulation. Capterra’s 2023 Retail AI Security Risks Survey of 1,000 online shoppers reveals that 65% of respondents don’t think AI tools are handling personal data responsibly.
Capterra’s research comes at a time when AI-driven shopping tools (such as ChatGPT search plugins and AI personal stylists) aim to revolutionize eCommerce by replicating the intuitiveness of human salespeople. Experts suggest that generative AI can help growing retailers compete with big brands. But there’s a major roadblock: consumer fears over how such tools will handle the data they share in exchange for personalized online shopping experiences.
Notably, only 35% of online shoppers trust AI tools to manage their data responsibly. Compared to last year, 64% of online shoppers are more wary of AI, and a resounding 86% believe AI should face stiffer regulation. Furthermore, while most shoppers are willing to share product reviews and style preferences with an AI tool, few would share the kind of sensitive data that leads to truly personalized AI-driven shopping: biometric data, images of themselves, and payment information.
“For growing retailers, AI adoption means a potential surge in sales conversions, deeper insights into customer preferences, and the ability to scale customer interactions without significant overhead.”
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As demand for AI regulation grows, a potential bridge between AI acceptance and user trust may lie in human oversight, known as human-in-the-loop AI. A substantial 60% of surveyed shoppers expressed greater confidence in AI tools when human intervention is involved.
“Unlike human salespeople, AI can draw from vast data sets, ensuring a more comprehensive and personalized shopping experience,” says Molly Burke, senior retail analyst at Capterra. “For growing retailers, AI adoption means a potential surge in sales conversions, deeper insights into customer preferences, and the ability to scale customer interactions without significant overhead.”
AI has emerged as a powerful ally for growing businesses. In fact, 58% of online shoppers are interested in shopping online using an AI tool to help personalize their experience. Nearly half (45%) say they’re willing to share personal information with AI in exchange for curated product suggestions, despite general misgivings about data safety.
Becoming an early adopter of generative AI will help small retailers, though they’ll have to pay attention to consumer demands for more oversight. Retailers looking to integrate AI must prioritize transparency, data protection, and customer support. To get started with generative AI, browse Capterra’s list of top generative AI software, which include tools for copywriting, video production, and conversational chatbots.
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