Al in Retail Report : Power to the Marketer in Australia

Power to the Marketer

AI in Retail Report: Power to the Marketer in Australia

The convergence between how consumers feel about AI and how marketers want to use AI.

Sara Richter CMO, SAP Emarsys

“Many people worry AI will lead to more formulaic marketing and less human content. I believe the opposite. AI will revolutionize the marketing landscape, empowering marketers to focus on strategic and creative endeavors. We commissioned research to show how marketers and consumers in Australia are demanding these improvements, driving our ongoing commitment to AI. Our new solutions will make marketing more efficient and fulfilling, while giving consumers better overall experiences.”

Current State of Retail: What are retailers getting wrong?

46% of shoppers believe the majority of marketing emails they receive aren’t relevant

30% of shoppers find it too difficult to return items

20% of shoppers think retailers don’t personalise content to meet their needs

24% of shoppers say retailers don’t understand them as a person

Attitudes to AI in Retail: How is AI improving customer engagement?

39% believe AI-powered recommendations have improved their online shopping experience

31% are satisfied with the

AI-enabled personalised services they receive in retail

34% are satisfied with the AI-powered product recommendations they receive

29% are satisfied with AI chatbots on retail sites

What is the demand for AI adoption?

38% are optimistic about AI-powered retail 43% of shoppers support further integration of AI into retail 40% would support the adoption of AI-enhanced ‘virtual try-ons’ in fashion retail

Convergence

Marketers

Consumers

believe AI is having a positive impact on their retail experiences

47%

want AI to support them in finding new products

40%

agree that using AI saves them an hour or more on a typical campaign launch

98%

report a boost in customer engagement after introducing artificial intelligence into their campaigns

77%

have increased their investment in AI in 2024 to boost customer engagement

32% want AI to support retail experiences by making marketing more personal

reporting a boost in customer loyalty thanks to AI

72%

are also using AI to unlock previously unseen insights from their customer data

81%

2024 State of

for Marketers

Business Disruption

Privacy-first Omnichannel Personalisation

Empowered Consumers

Benefits of AI in Marketing

72% of marketers report an increase in customer loyalty since adopting AI into their campaigns

77% of marketers report an increase in customer

engagement since adopting AI-powered personalisation into their campaigns

74% of marketers believe AI is ‘essential’ to increasing customer engagement in 2024

63% of marketers report

higher open rates when their email subject lines are written by AI

Tradition Meets Transformation

SAP Emarsys is empowering marketers with Gen AI

40% of consumers say AI is helping them find products

63% of marketers also say that email subject lines generated by AI receive higher open rates

AI Product Finder Easily retrieve product catalog information using natural language commands to quickly create compelling, personalised product-based campaigns

AI Subject Line Generator Build campaigns more efficiently and effectively with optimal subject lines, powered by generative AI

Data and Privacy Concerns

73% of consumers are concerned about AI using their personal data during retail purchases Only 7% report a high level of trust in AI-powered retail services 10% report a high level of trust in retailers to protect their personal information 90% believe it’s important for retailers to be transparent about their use of personal data 73% believe it’s important for retailers to prioritise ethical AI use • 37% believe it is ‘very important’

40% are confident in the data privacy of AI • Only 7% are not confident in the data privacy of AI

Data Privacy and the EU AI Act

ü The new EU AI Act’s framework focuses on fostering trustworthy AI through compliance while allowing flexibility to innovate ü SAP Emarsys believes these new regulations are positive for businesses and consumers.

40% of Australian consumers are confident in the data privacy laws surrounding AI

72% of marketers agree this legislation is a significant step towards responsible AI

66% of marketers think it will increase consumer trust in brands using AI

Learn more on SAP Emarsys’ Response to EU AI Regulations

qrco.de/eu-ai

qrco.de/pttm24

Research Methodology

The research was conducted by Opinion Matters, among a sample of 2,003 consumers and 251 marketers in Australia. The data was collected between 21.03.24 - 27.03.24. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles. Opinion Matters is also a member of the British Polling Council.

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