Manhattan Associates research highlights growing adoption of AI shopping assistants, with consumers using the technology to compare prices and retailers while continuing to verify recommendations.
Artificial intelligence is set to play a growing role in Australian shopping habits this Black Friday and Christmas season, with 83% of consumers expecting to use the technology to support their purchasing decisions, according to new research from Manhattan Associates.
The survey also found that 85% of Australians would consider switching retailers if an AI assistant identified the same product at a lower price elsewhere, suggesting the technology could place increasing pressure on traditional retailer loyalty.
The findings come ahead of another competitive retail period, following record Australian spending of $23.8 billion during the extended Black Friday shopping period in 2025, according to CommBank iQ.
AI becomes a shopping research tool
Among consumers planning to use AI, comparing products, brands and retailers was a leading application, identified by 36% of respondents. A further 35% expected to use the technology to find the best deals or lowest prices.
The results suggest AI assistants could increasingly influence which retailers consumers consider, particularly as shoppers look for ways to compare offers across multiple businesses.
Raghav Sibal, Vice President APAC at Manhattan Associates, said AI is creating new opportunities for consumers to discover alternative retailers.
“AI is giving consumers another way to compare retailers, and that could make it harder for businesses to rely on established customer loyalty. If a shopper can find the same product for less elsewhere, they may be more willing to consider a retailer they haven’t purchased from before,” said Sibal.
“But price is only one part of the purchasing decision. Retailers also need to make sure the product is available, the delivery options are convenient, and the overall experience gives customers confidence to complete their purchase.”
Trust remains a barrier to AI-led purchases
While Australians are increasingly willing to use AI for shopping research, the findings indicate that consumers are not yet ready to rely entirely on its recommendations.
More than three-quarters (78%) said they would independently verify an AI-recommended deal before buying. Price and discount accuracy was the most commonly cited concern at 52%, followed by product information and reviews (23%) and delivery costs or timeframes (20%).
Consumers also showed a preference for retaining direct relationships with retailers during checkout.
Although 35% said they would be comfortable completing a transaction through an AI shopping assistant, 53% preferred to make their purchases directly through retailer websites or apps.
Real-time inventory information could influence AI recommendations
The research also examined which factors consumers believe AI should prioritise when recommending retailers with identical products at the same price.
Nearby stock availability ranked highest at 39%, followed by free delivery (28%) and faster fulfilment (27%).
Location-based shopping also attracted significant interest, with 75% of Australians willing to share their location with an AI assistant to identify stock available at nearby retailers.
According to Sibal, these findings reinforce the importance of reliable product and inventory information as AI becomes more closely integrated into shopping journeys.
“An AI recommendation might bring a customer to a retailer’s website, but the retailer still needs to deliver on what that customer expects. If the price doesn’t match, the product isn’t available or the delivery timeframe isn’t suitable, the customer can easily look elsewhere,” said Sibal.
“During peak shopping periods, retailers need accurate inventory information across their sales channels and flexible fulfilment options to meet changing customer demand. Getting these fundamentals right will be important to converting AI-driven interest into sales, regardless of where a customer begins their shopping journey.”
