Fibre2Fashion Mentions First Insight | AI Unexpected Bright Spot in 2025: First Insight U.S. Consumer Survey
A survey of 1,131 US consumers by First Insight, which works on artificial intelligence (AI)-powered decision-making, highlights the dominance of price in purchasing decisions, generational divide in attitudes toward affordability, and the growing impact of AI-driven personalisation in 2025.
AI adoption is rapidly transforming the consumer experience, the survey revealed.
"As consumers grapple with an uncertain economic outlook, they are demanding lower prices while still expecting smarter, more personalised experiences. Companies that embrace AI to deliver affordability alongside tailored solutions will not only navigate this challenging landscape, but will also seize the opportunity to foster loyalty, drive growth, and stay ahead of the competition," said Greg Petro, chief executive officer of First Insight, in a company release.
Affordability and value continue to reign supreme, with 62 per cent of consumers citing price as the most influential factor in their decisions.
However, younger generations are less price-driven: just 56 per cent of Gen Z and 55 per cent of Millennials list price as their top priority, compared to 71 per cent of Boomers and 68 per cent of Gen X. This generational disparity suggests companies must balance affordability with other value propositions to appeal to younger consumers.
While 55 per cent of consumers express confidence in their financial situation, 57 per cent worry about a potential recession in 2025.
To combat rising costs, 13 per cent of consumers plan to rely on flexible payment options, especially as external pressures like tariffs and trade disputes threaten price stability.
According to the survey, 40 per cent of consumers report using AI-driven tools, including chatbots and personalised recommendations, and 75 per cent of AI users say these technologies enhance their purchase experience.
Just 11 per cent of consumers rank sustainability as a top factor, highlighting challenges for eco-conscious brands.
Challenges persist in engaging younger consumers: while 79 per cent of Gen X and 78 per cent of Millennials report satisfaction with AI, Gen Z trails at just 63 per cent, revealing opportunities to better align AI tools with younger consumers' expectations.
Companies that can seamlessly blend value with AI-driven insights will lead the industry forward, catering to diverse generational preferences, the survey concluded.
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