Artificial intelligence now influences over half of Gen Z’s in-store purchases, with the MACH Alliance reporting that 62% of physical retail spending among younger shoppers is shaped by AI search. This matches the proportion of digital spend AI now shapes online, indicating a convergence of technology across both channels.
AI adoption has expanded across the entire buying process. While 67% of all shoppers currently use AI for online search and discovery, peaking at 92% among Millennials, its role in physical stores has surged. Data shows that 42% of in-store purchases across all demographics now rely on AI-driven search, with younger consumers driving this trend.
The technology’s reach extends beyond search functions. AI agents now direct 41% of online purchases, while 35% of social media buying decisions are influenced by AI recommendations. For Millennials and Gen Z, that figure rises to 50%. Meanwhile, AI-enabled wearables such as Meta glasses have entered physical retail: 18% of Gen Z shoppers used them in the past year to assist with in-store choices, compared to just 8% of the broader shopper base.
This integration creates challenges for brands. Jason Cottrell, President of the MACH Alliance, says that retailers can no longer view AI interoperability through the lens of ecommerce alone; it must span every touchpoint. “As AI becomes an influence layer across the entire customer journey, retailers can no longer view AI interoperability through the lens of ecommerce alone; it must span every touchpoint,” he said. “And this requires brands to build AI readiness across the whole commerce architecture, with the agility and composability to evolve as quickly as AI advancements move at pace.”
The MACH Alliance projects a 25% increase in consumer reliance on AI agents within the next year. By 2027, 10% of shoppers will use multiple AI agents during a single purchase, up from the current 8%. These developments will take center stage at MACH X: Amsterdam, a conference running September 29–30, where leaders from Picnic, Flaconi, and other companies will address AI’s impact on retail operations.
Cottrell added that the next challenge is making sure that the ecosystem works when multiple AI agents are involved in a single buying journey. Retailers need systems and data that can connect seamlessly with agents they may not own or control, and the flexibility to adapt as those interactions evolve.
