How Artificial Intelligence is Reshaping Consumer Behaviour

Canadian consumers no longer discover products the way they once did. They are moving away from exploratory weekend store visits toward a more personalized, intuitive and visual experience. Artificial intelligence (AI) is now becoming part of how people plan renovations and research products before making purchasing decisions. For retailers, this shift represents one of the most significant changes in consumer behaviour in more than a decade.

According to Environics Analytics’ ClickScapes and Opticks datasets, AI usage among Canadian consumers has surged dramatically over the past two years, outpacing global growth rates. Nearly half of shoppers use AI tools at some point in their purchase journey.

Behind this shift are distinct consumer groups that identify as the most open to using AI. Environics Analytics has segmented the groups as young urbanites and suburban sophisticates. These leading AI adopters are diverse, technology-embracing shoppers that often live in condominiums, townhomes or multigenerational households where making the most of space and design choices matters. Many are using AI to synthesize online reviews, compare prices to decide whether a purchase is of value and fits their budget, and to see how products will look in their homes before they buy.

But the most important change is to how shoppers feel. AI helps reduce the uncertainty that often comes with big purchases: Will it look the way I imagine? By removing friction and building confidence, AI tools are changing not only how Canadians shop but how they feel about investing in their homes.

While adoption is growing, more than 80 per cent of Canadians still prefer to complete purchases in-store, according to the most recent IBM consumer retail study. Digital tools may guide the process, but the majority of consumers prefer to evaluate products in-store before buying. This reinforces the continued importance of physical retail, even as shoppers arrive better informed, more confident and with higher expectations.

The result is a hybrid journey that retailers need to support. Shoppers expect seamless transitions between online research, AI-driven inspiration and in-store experiences. They want to know what is in stock, receive relevant recommendations, and understand product quality and longevity. AI can now help retailers deliver these expectations at scale.

AI Meets Customer Experience
AI adoption is reshaping expectations at every stage of the customer journey, from discovery through to making a purchase.

During discovery, Canadians are increasingly turning to conversational search and visual tools powered by AI. A single image of a room can now generate curated suggestions. Many shoppers use these tools to picture renovations.

Amid consideration, AI plays the role of an informed advisor. It helps shoppers understand product specifications, spot meaningful differences in quality and assess durability. AI also assists with identifying the best value across retailers. Tools that summarize large volumes of reviews are particularly influential when people are evaluating higher priced items.

At time of purchase, AI helps remove uncertainty. ‘Try on’ technology allows shoppers to view flooring in their space. Recommendations adjust based on budget, household needs and design preferences.

Even as AI becomes embedded in customer shopping, privacy remains a key concern. About 60 per cent of Canadians worry about how retail companies use their data. For retailers, earning trust means being clear about data handling practices and opt-in choices, and reassuring that personalization will not put consumers’ information at risk.

For brands, AI innovation with consumer values has enormous opportunity. Retailers can build stronger engagement through more intuitive journeys, tools and communications that support confident decisions. Manufacturers can use AI to highlight craftsmanship, sustainability and quality with more compelling storytelling. In turn, consumers can feel more empowered and inspired as they shape the spaces they call home.

AI is not replacing the brands, showrooms or expert staff. Instead, it is making home improvement more accessible, more personalized and more enjoyable for every type of Canadian household.

Michael Scida is vice-president of retail business development and Sophie Marai is vice-president of account management at Environics Analytics. The company’s segmentation system was used to identify key consumer groups cited in this article. Environics Analytics is a premier marketing, information and analytical services company in Canada, helping thousands of customers across every industry sector turn data and analytics into strategy, insights and results. Michael and Sophie can be reached at [email protected].