Generative artificial intelligence (AI) is poised to play a much larger role in the retail sector, evolving from a tool used primarily for product discovery and research into one capable of completing transactions on behalf of consumers, a new study by McKinsey has found.
The findings suggest that advances in AI technology, combined with continued consumer focus on value and affordability, are reshaping how shoppers discover products, evaluate options and make purchasing decisions. Younger consumers, particularly those in Generation Z, are leading this shift as rapidly evolving AI models become increasingly embedded in the shopping journey.
McKinsey described the growing influence of AI, social media and digital platforms on purchasing behaviour as a “new tech-driven path to purchase”, highlighting the increasing convergence of content discovery, product research and transaction capabilities.
Social media has emerged as a particularly influential channel throughout the consumer decision-making process. Among Gen Z consumers, it has become the most important platform across all stages of the shopping journey.
Around 28% of Gen Z consumers already use generative AI tools while shopping, compared with 16% of baby boomers. Meanwhile, 60% of Gen Z respondents said they regularly use AI-generated overviews provided by traditional search platforms, more than double the 29% reported among baby boomers.
Consumer trust remains a critical factor influencing the adoption of both social media and generative AI in commerce. Gen Z consumers generally exhibit lower levels of trust in these channels than older generations, despite their higher levels of engagement.
Ongoing changes in online search behaviour have also been highlighted. While overall web traffic has declined by 8% since 2023, traditional search remains an important gateway for consumers. Search activity continues to rise overall, even though the average number of searches conducted per user has fallen.
AI-generated summaries and conversational interfaces are rapidly changing how consumers interact with search platforms, creating new opportunities for retailers and technology providers.
At the same time, major technology, retail and payments companies are preparing for the next stage of AI-enabled commerce. Businesses including Shopify, Amazon and Walmart are increasingly aligning around common standards that would allow AI agents to compare products, apply loyalty rewards and complete purchases across multiple retailers on behalf of consumers.
As these capabilities mature, generative AI is expected to become more widely used in the final stage of the consumer decision-making journey, enabling automated purchasing and transaction completion.
The emergence of so-called “agentic commerce” is expected to create what McKinsey described as a “dual front door” for retail, allowing consumers to complete purchases either through retailer-owned AI systems or directly within generative AI platforms.
Bharat Tex Special Report 2026 
