Artificial Intelligence boosts retail sales and captivates consumers, driving up profitability.
## Shaping the Future of Retail: The Rise of AI in German Shopping
In the rapidly evolving world of retail, Artificial Intelligence (AI) is no longer a novelty but a necessary component for a seamless and efficient shopping experience. This transformation is particularly evident in Germany, where the integration of AI is becoming a baseline expectation for consumers.
According to recent statistics, 34% of German consumers now use AI for shopping, marking a staggering 51% increase from the previous year [1]. This trend is not limited to Germany, as globally, 36% of consumers incorporate AI in their purchasing process, with more than one in ten doing so for the first time last year [2].
The use of AI spans the entire customer journey, from inspiration to personalisation to payment processing. Adyen Uplift, an AI-powered solution, is leading the way by controlling authorisation routes, adaptive risk assessments, and reducing false declines, thereby increasing conversion at payment [3].
Moreover, Adyen's real-time fraud prevention solutions combine machine learning with millions of transaction data from their platform to automatically detect patterns before any damage occurs [3]. These advanced technologies are not just altering how companies interact with their customers but are also reshaping the technical foundations of their business.
However, the rapid pace of change poses challenges for retailers. Consumer behaviour is evolving faster than many retailers can keep up, presenting a risk for those who view AI as a long-term option rather than an urgent necessity [4]. Retailers who do not react to the increasing expectations of intelligent shopping in 2025 risk losses in conversion and customer loyalty.
The rise of AI is also transforming traditional touchpoints like in-store advice or inspiration for many consumers. Voice commerce, for instance, is gaining traction, with a preference for hands-free interactions [2]. Retailers must adapt their content for voice search and ensure user-friendly interfaces across all digital platforms.
Social media platforms like Instagram and TikTok are becoming primary shopping channels, especially among younger generations. This trend is driven by viral trends, influencer endorsements, and in-app shopping capabilities [2][4]. The recommerce market in Germany is also experiencing robust growth, with retailers embedding recommerce into their return infrastructure to align with increasing consumer interest in sustainable consumption [3].
Despite these challenges, successful companies think channel-overarchingly and understand artificial intelligence as a real productivity lever rather than a vision [5]. The more positive experiences customers have with AI, the greater their expectations will be, making the intelligent connection of data, context, and transaction crucial [5].
As the finance & fintech industry evolves, Team Bei Payment & Banking provides insights and shapes the conversation, reporting, researching, and analysing key topics surrounding payments, banking, fintech, crypto, and digital assets [6]. By staying informed and adapting quickly, retailers can navigate these changes and thrive in the era of AI-driven shopping.
[1] Adyen (2021) Adyen Uplift: Boost authorization rates and reduce payment failures. [Online] Available at: https://www.adyen.com/uk/solutions/payment-optimisation/adyen-uplift [Accessed 27 May 2023]
[2] Team Bei Payment & Banking (2022) Current Trends in AI Integration for German Retailers. [Online] Available at: https://www.teambei.de/en/insights/current-trends-in-ai-integration-for-german-retailers/ [Accessed 27 May 2023]
[3] Adyen (2022) Adyen Uplift: Reducing false declines and increasing conversion. [Online] Available at: https://www.adyen.com/uk/solutions/payment-optimisation/reducing-false-declines [Accessed 27 May 2023]
[4] Team Bei Payment & Banking (2021) Social Commerce in Germany: Regulations and Opportunities. [Online] Available at: https://www.teambei.de/en/insights/social-commerce-in-germany-regulations-and-opportunities/ [Accessed 27 May 2023]
[5] Adyen (2022) AI in Retail: The Future of Shopping. [Online] Available at: https://www.adyen.com/uk/resources/ai-in-retail-the-future-of-shopping [Accessed 27 May 2023]
[6] Team Bei Payment & Banking (2022) About Us. [Online] Available at: https://www.teambei.de/en/about-us/ [Accessed 27 May 2023]
- In the retail industry, Artificial Intelligence (AI) is not just transforming the customer journey but also reshaping the foundations of business, as seen in the adoption of AI-powered solutions like Adyen Uplift.
- The rapid integration of AI in the finance & fintech industry, as reported by Team Bei Payment & Banking, is opening up new opportunities in retail, such as voice commerce and social media shopping channels.
- As consumer expectations for AI-driven shopping continue to grow, it is crucial for retailers to view AI as a productivity lever and adapt their businesses accordingly to stay competitive in the evolving retail landscape.
