First Insight’s Study Finds 58% of Consumers Worry About a Recession, while 75% Say AI Enhances Their Shopping Experience—Signaling a New Era for Companies to Adapt

PITTSBURGH: As economic uncertainty looms and AI technology transforms industries, a new study from First Insight, a global leader in AI-powered decision-making, reveals key trends reshaping consumer behavior in 2025. The survey of 1,131 U.S. consumers highlights the dominance of price in purchasing decisions, generational divides in attitudes toward affordability, and the growing impact of AI-driven personalization.

"In 2025, companies face a balancing act," said Greg Petro, CEO of First Insight. "As consumers grapple with an uncertain economic outlook, they are demanding lower prices while still expecting smarter, more personalized 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."

Affordability and Value continue to reign supreme, with 62% of consumers citing price as the most influential factor in their decisions. However, younger generations are less price-driven: just 56% of Gen Z and 55% of Millennials list price as their top priority, compared to 71% of Boomers and 68% of Gen X. This generational disparity suggests companies must balance affordability with other value propositions to appeal to younger consumers.

Economic concerns remain top of mind.

While 55% of consumers express confidence in their financial situation, 57% worry about a potential recession in 2025, reflecting a disconnect between personal finances and broader economic anxieties. To combat rising costs, 13% of consumers plan to rely on flexible payment options like Buy Now, Pay Later (BNPL), especially as external pressures such as tariffs and trade disputes threaten price stability.

At the same time, AI adoption is rapidly transforming the consumer experience.

According to the study, 40% of consumers report using AI-driven tools, including chatbots and personalized recommendations, and 75% of AI users say these technologies enhance their purchase experience.

Challenges persist in engaging younger consumers: while 79% of Gen X and 78% of Millennials report satisfaction with AI, Gen Z trails at just 63%, revealing opportunities to better align AI tools with younger consumers' expectations.

Key Survey Findings

Economic Concerns Drive Cautious Spending

• 57% of consumers are worried about a recession, with Gen X leading at 65%.
• 31% of respondents plan to prioritize essentials like groceries and rent.
• 52% of consumers report that rising costs, including tariffs, will significantly impact their purchasing behavior.

Affordability Remains Top of Mind

• 62% of consumers rank price as the leading factor in their shopping decisions.
• Younger generations (Gen Z: 56%, Millennials: 55%) are less price-driven than Boomers (71%) and Gen X (68%).
• 25% of individuals plan to reduce the number of items they purchase in response to rising costs.

AI Adoption Accelerates but Faces Generational Challenges

• 40% of consumers have interacted with AI-driven tools like chatbots (56%) and personalized recommendations (47%).
• Among AI users:
  • 75% agree AI improves their purchasing experience, with Gen X (79%) and Millennials (78%) leading in satisfaction.
  • 63% of Gen Z report satisfaction, signaling room for improvement in aligning AI with younger shoppers.
• 68% of Baby Boomers say AI tools have no impact on their purchasing decisions.

Retail Implications: Innovating for Value and Personalization

The survey underscores a pivotal moment for companies as consumers demand both affordability and innovative, personalized experiences. Companies that can seamlessly blend value with AI-driven insights will lead the industry forward, catering to diverse generational preferences.

Additional Highlights

• Generational Gaps in Financial Confidence: Gen Z (34%) is the most confident about their personal finances, while Baby Boomers (21%) report the least confidence.
• Sustainability Takes a Back Seat: Just 11% of consumers rank sustainability as a top factor, highlighting challenges for eco-conscious brands.
• Flexible Payments on the Rise: 13% of consumers plan to use BNPL options to manage rising costs driven by trade disputes and tariffs.

Experience the Future at NRF 2025

Join First Insight at Booth #4549 for a demo during NRF 2025 to discover how its AI-powered platform transforms consumer data into actionable insights. See how First Insight helps companies navigate economic pressures while driving measurable financial outcomes.

Methodology

This study was conducted online among a nationally representative sample of 1,131 U.S. consumers on January 3, 2025.

About First Insight

First Insight is a global leader in AI-powered decision-making, trusted by brands like Gap, Under Armour, Marks & Spencer (M&S), Woolworths, Family Dollar, and Kohl’s. Leveraging advanced AI technologies—including generative AI, machine learning, and human computational modeling—combined with real-time consumer data, First Insight transforms consumer insights into profitable strategies that drive measurable business success.

Powered by its proprietary Voice of the Customer platform and Value Score™, First Insight enables businesses to evaluate the value of products, people, and experiences. First Insight helps companies confidently design, price, and market offerings that resonate with consumers, ensuring every decision aligns with market demand and delivers financial impact.

With 17 years of innovation in AI and predictive analytics, First Insight empowers businesses across industries—including retail, apparel, footwear, automotive, home goods, CPG, and hospitality—to outpace competitors by deeply understanding and adapting to ever-changing customer needs. From concept to conversion, First Insight equips brands to create offerings customers love while achieving higher revenue, stronger margins, and deeper customer loyalty.

For more information, visit www.firstinsight.com.

Fonte: Business Wire