New data reveals that consumers are ready for AI, AR, and robots

Klarna, the global payment network, and AI-based shopping destination, announces the release of the “Future of Retail” report. The data from the report unveils how retailers will need to adapt their offerings to win shoppers in the future. Considering the latest technological innovations, AI, AR, and robots are likely to dominate the shopping experience both in physical stores and online, with services like Klarna already integrating AI personalizations into their products.

Klarna spoke with over 5,000 consumers from 5 countries and collaborated with a retail expert to explore how the future of shopping will evolve. The “Future of Retail” report also includes predictions about the future of some of the world’s leading retailers and ChatGPT, the AI chatbot developed by OpenAI, which teamed up with Klarna to streamline smooth shopping.

The Klarna study examined buying habits that will exist over 18 years when members of Generation Z will reach 40 years of age and, together with Millennials, will represent the main consumers. The results reveal predictions about how emerging technologies will influence the shopping experience, such as:

At the top of the wish list is personalized offerings: 65% want the shopping experience to become more personalized in the future, and 36% are confident that it will be both in-store and online;
Most clothes shoppers won’t try on clothes before buying: only half of the respondents believe they will continue to try on clothes as they currently do (53%). Instead, 48% wish to use virtual fitting rooms, 28% augmented reality, and 23% will rely on artificial intelligence to advise them on the best-fitting clothes;
Augmented reality will enhance the in-store shopping experience: the vast majority (81%) expect augmented reality to enhance their in-store shopping experience, and one-third (37%) believe this technology will become a standard in most stores;
The future is contactless: Gen Z and Millennials (64%) agree with the prediction that in over 18 years, most physical stores will exclusively accept card payments, and 31% of them believe this change will happen in the next 5 years.

In addition to technological advancements, the planet’s future and the growth of the circular economy are also among consumers’ priorities. Younger generations agree that the circular economy should play a bigger role in the shopping industry, and fashion should become more sustainability-oriented in the future.

52% of respondents want more sustainable fashion in the future;
57% want the circular economy to have a larger share of the shopping industry, and 1 in 3 believes they will sell (26%) and buy (37%) pre-owned clothing more often.

“In the Western world, about 80% of all online purchases are made through search, while the remaining 20% are based on personalized recommendations. In contrast, in China, 80% of online purchases are driven by personalized recommendations. This study confirms that Western world buyers desire a similar shopping experience, which is now available on the Klarna app, supported by AI and purchase history data. The next generation of consumers will expect an extremely personalized shopping experience, where products find them, not the other way around,” stated David Sandström, Chief Marketing Officer at Klarna.

For more information, the study can be downloaded here. Klarna conducted this online study in collaboration with research agency Dynata in 5 countries (USA, UK, Germany, France, and Sweden) in April 2023, including a minimum of 1,000 respondents in each country. The sample sizes are representative at the national level, including both Klarna users and non-users. In total, 5,055 consumers participated in the study, including 1,108 from the USA.