AI can make retail more relevant, but it can also destroy trust remarkably quickly

That was one of the key takeaways from my conversation with Michèle Boockoff-Bajdek, Chief Marketing Officer at Sitecore, in the latest episode of The Retail Influencer.

We discussed Sitecore’s Digital Authenticity Index and what authenticity really means in an AI-driven retail environment.

A few highlights:

·       68% of consumers say digital interactions carry as much or more weight than real-world interactions when judging authenticity.

·       83% of Gen Z consumers believe AI can be beneficial when used responsibly. Being comfortable with AI does not necessarily mean trusting everything it produces.

·       74% of Gen Z say AI-generated content is easy to spot. Generic or artificial experiences are increasingly difficult to hide.

·       Almost 7 in 10 Gen Z consumers have switched brands or reduced engagement because a digital experience did not feel trustworthy or authentic.

·       96% of consumers consider accuracy extremely important.

·       65% say undisclosed use of AI decreases their trust.

But beyond the numbers, one idea really stayed with me: The customer doesn't experience an AI failure. They experience a broken brand promise.

If an AI assistant gives the wrong price, says a product is available when it isn't, or promises a delivery that never arrives, the consumer doesn't blame “the technology”. They blame the brand.

And there is another major shift happening. The traditional purchase funnel is collapsing.

Consumers can now use AI to discover products, compare options and make decisions without ever visiting a retailer's website or store. So brands increasingly need to be not only visible, but correctly understood by AI systems.

Michèle also shared a very simple three-question test for retailers considering AI:

·       Is it genuinely improving the customer experience?

·       Can we stand behind the information and recommendations it provides?

·       And when something goes wrong, can the customer easily reach a human?

Experience. Transparency. Human support.

Three simple principles, but perhaps increasingly important ones.

Listen to the full conversation with Michèle Boockoff-Bajdek on the English-language stream of The Retail Influencer.

This is a conversation about AI, Gen Z, personalization, trust and what authenticity really means for the future of retail.

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