Shoppers Are Getting Comfortable With AI-Powered Personalization

As retailers ramp up their use of AI to personalize pricing and product recommendations, consumer comfort with automation is growing — but not evenly across generations. According to a November study from Wunderkind, younger shoppers are leading the way in embracing AI-assisted shopping, while older consumers remain cautious, underscoring the need for brands to be transparent about how personalization works. 

Overall, about one-third (32%) of consumers say they’re very comfortable with AI-powered personalization, and another third feel somewhat comfortable, particularly when brands are clear about how personalization works. This suggests that transparency can be a key factor in whether shoppers view AI as a helpful convenience or a potential overreach.

Millennials (50%) are the generation most at ease with AI-assisted shopping, followed by Gen Z (33%) and Gen X (31%), who largely see it as a normal part of digital life. Boomers, however, are the most skeptical, with 43% describing AI as intrusive and expressing ongoing concerns about privacy, data storage and the accuracy of automated recommendations.

Comfort levels also differ by gender: 70% of men say they’re comfortable with AI personalization, compared to 59% of women (59%), reflecting divergent perspectives on data sharing and targeted offers.

Wunderkind notes that “as shoppers grow more aware of how data shapes their digital experiences, they increasingly expect brands to be upfront about how personalization works. Explaining why certain offers appear, how AI identifies better deals, or what data powers recommendations can turn skepticism into confidence. Transparent personalization isnʼt just ethical itʼs a competitive advantage.”