New research reveals 85% of Australians would consider switching retailers for a better AI-recommended deal, putting pressure on businesses to compete on price, availability and delivery.
Australian retailers face a growing challenge to customer loyalty this Black Friday and Christmas shopping season, with new research revealing that 85% of consumers would consider switching retailers if artificial intelligence (AI) found the same product at a lower price elsewhere.
The findings, from research commissioned by supply chain and commerce technology company Manhattan Associates, suggest AI-powered shopping tools could reshape how consumers compare retailers and make purchasing decisions during one of the busiest trading periods of the year.
The shift comes as retailers prepare for another competitive peak season, following record spending of $23.8 billion during the extended Black Friday shopping period in 2025, according to CommBank iQ.
AI changing how consumers shop
The research found that 83% of Australians expect AI to play a role in their shopping activities over the coming months, particularly when searching for deals and comparing products.
More than a third (36%) expect to use AI to compare products, brands or retailers, while 35% plan to use it to find the best deals or lowest prices.
For retailers, this could mean increased competition for customers who have traditionally remained loyal to particular brands or stores, as AI makes it easier to identify alternative sellers offering better value.
Raghav Sibal, Vice President APAC at Manhattan Associates, said the growing use of AI could change how retailers attract and retain customers.
“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.”
Consumer trust remains a barrier
Despite growing interest in AI-assisted shopping, consumers remain cautious about relying entirely on the technology.
Nearly eight in ten Australians (78%) said they would verify an AI-recommended deal against a retailer’s website or another source before purchasing.
Price accuracy was the biggest concern, with 52% most likely to check whether a recommended price or discount was correct. A further 23% would verify product information and reviews, while 20% would check delivery times or costs.
Traditional retail channels also remain central to the purchasing process. While 35% of respondents said they would be comfortable completing a transaction directly through an AI shopping assistant, 53% would prefer to purchase through the retailer’s own website or app.
These findings suggest that while AI may increasingly influence where consumers discover products, retailers still have an opportunity to secure sales through their own digital channels.
Inventory and fulfilment become competitive advantages
The research also highlights the importance of operational performance in converting AI-driven recommendations into purchases.
When consumers were asked what should influence an AI recommendation between retailers offering identical products at the same price, 39% prioritised nearby stock availability, ahead of free delivery (28%) and faster fulfilment (27%).
Three-quarters of respondents (75%) also indicated they would be willing to share their location with an AI shopping assistant to help identify products available nearby.
For retailers, these preferences reinforce the commercial importance of accurate inventory visibility, reliable product information and flexible fulfilment capabilities, particularly during periods of high demand.
“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.”
As AI becomes a more common part of the shopping process, retailers may face greater pressure to compete beyond price alone. The ability to provide accurate product information, confirm stock availability and fulfil orders reliably could become increasingly important in retaining customers and protecting sales during peak trading periods.
