Joint study between Cognizant and Oxford
Economics predicts AI will drive 46% of consumer transactions in
the U.S. by 2030, underscoring the business need to leverage AI to
reimagine customer experiences
TEANECK,
N.J., Jan. 17, 2025 /PRNewswire/ -- Today
Cognizant (NASDAQ: CTSH), in collaboration with Oxford Economics,
unveiled new insights into how artificial intelligence (AI) is set
to revolutionize the consumer purchasing journey by 2030 and drive
significant economic impact. The study, New Minds, New Markets,
shows that as income and purchasing power increases among 18 to
44-year-old AI enthusiasts, this demographic will command an
estimated $4.4 trillion of
AI-influenced consumer spending in the U.S. by 2030. In the U.K.,
this spending projection is estimated at $690 billion, in Australia it's at $669
billion, and in Germany
it's at $539 billion.
The study also predicts that U.S. consumers who embrace AI could
drive nearly half (46%) of spending by 2030. In Australia, this projection rises to 55% over
the same period. In Germany it's
estimated at 46% and in the U.K., it's at 39%.
"As AI-influenced buying evolves, businesses must navigate mixed
consumer attitudes towards AI," said Ravi
Kumar S., CEO of Cognizant. "Enterprises are balancing the
demand for convenience with the need for control and trust.
Understanding these attitudes is crucial for developing AI
solutions that not only enhance convenience but build confidence in
the full potential of how AI can reimagine the customer experience
and unlock tremendous value."
To inform the study's findings, Cognizant and Oxford Economics
examined historic patterns of consumer technology adoption across a
range of demographics and grouped them into cohorts based on
behavioral dynamics. It then aligned these cohorts with data from a
survey of 8,400 respondents focusing on their openness to using AI
in the buying experience. With 75% of all respondents noting they
have frustration with the buying process today, the study found the
transformative potential of AI will reshape the purchasing journey
in three pivotal phases in the years to come: Learn (when consumers
learn about new products), Buy (when consumers make a purchase),
and Use (when consumers are in the process of using a product):
- Consumers are most comfortable using AI in the discovery
phase of making a purchase decision (the Learn phase).
Across all consumer age groups, 47% cite they are comfortable using
AI to help choose products and services. In this phase, AI-powered
search tools, personalized recommendations and virtual assistants
can be essential tools in the discovery and evaluation stages of
consumer journeys. Technology companies are already building these
capabilities into their consumer-facing toolsets, making it easier
for consumers to use AI to gather information and shortlist
options.
- During the decision-making phase (the Buy phase), consumers
harbor more hesitation. In this phase, consumers share concerns
around security and trust when it comes to using AI. The study
showed 75% of consumers are unlikely to allow AI to automatically
reorder or pay for high value items without their direct
authorization. Additionally, only 16% of those who are 55 years and
older are comfortable using AI during this phase (and only 33% are
comfortable among the 18–44-year-old group).
- Comfort levels begin to rebound in the post-sale engagement
phase (the Use phase). In this phase, consumers
benefit from AI's ability to help them tap into time savings and
targeted services that add value to their after-purchase
experience. Across all consumers, nearly a third (28%) said they
are comfortable with AI reordering low-priced items. For example,
smart HVAC systems could intelligently reorder air filters from the
manufacturer directly, reducing the onus on consumers to identify
the need for replacements themselves or reliance on local retailers
to deliver supplies in a timely manner.
Capitalizing on the AI-augmented opportunity
This study underscores the work Cognizant is doing to help
business leaders across industries adapt to AI-empowered consumers,
particularly as AI agents begin to power more consumer purchasing
experiences, orchestrating complex tasks across the buying journey.
The estimated economic impact of this evolution is significant --
as AI adoption continues to grow, Cognizant and Oxford Economics'
New Work New World study predicts AI could inject $1 trillion into the U.S. economy by 2032.
Cognizant is helping businesses adjust to new rules of
engagement that integrate AI into familiar environments and
supporting work to enhance convenience, ensure secure
interoperability, and build trust through human involvement.
To further support the acceleration of enterprise AI adoption,
Cognizant launched Cognizant Moment™, the next evolution of the
company's digital experience practice area, designed to help
clients leverage the power of AI to reimagine customer experience
and engineer innovative strategies aimed at driving growth. Now, as
the ways consumers interact with technology are shifting, Cognizant
aims to give clients the tools and insights they need to drive
differentiation, cultivate customer loyalty and become
future-ready.
Also critical to helping the acceleration of AI adoption is
Cognizant's Synapse program, a global upskilling initiative
designed to revolutionize and rebalance the landscape of tech
education and workforce development by redefining opportunities for
more than one million individuals worldwide.
To view the complete study and learn more, click here.
Methodology:
In mid-2024, Cognizant and Oxford Economics devised a
multi-modal study to examine how AI will change consumer behaviors
and, therefore, the customer purchase journey. The study included
both a qualitative and a quantitative component: a survey of 8,400
adults across the UK, US, Australia and Germany, and 80 in-depth interviews with
consumers in the same regions. For the full methodology, click
here.
About Cognizant
Cognizant (Nasdaq: CTSH)
engineers modern businesses. We help our clients modernize
technology, reimagine processes, and transform
experiences to stay ahead in our fast-changing world. Together,
we're improving everyday life. See how
at www.cognizant.com or @cognizant.
For more information, contact:
Corporate
Gabby Gugliocciello
Gabrielle.Gugliocciello@cognizant.com
India
Rashmi Vasisht
rashmi.vasisht@cognizant.com
Americas / EMEA / APJ
Christina Schneider
christina.schneider@cognizant.com
Forward-Looking Statements
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
the accuracy of which are necessarily subject to risks,
uncertainties and assumptions as to future events that may not
prove to be accurate. These statements include, but are not limited
to, express or implied forward-looking statements relating to the
adoption of generative artificial intelligence, the effects of
generative artificial intelligence on the consumer spending and the
economy and the effectiveness and results of our new Synapse
initiative. These statements are neither promises nor guarantees
but are the findings of the studies discussed above and remain
subject to a variety of risks and uncertainties, many of which are
beyond our control, which could cause actual results to differ
materially from those contemplated in these forward-looking
statements. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Factors that could cause outcomes
to differ materially from those expressed or implied include
general economic conditions, the impact of technological
development and competition, the competitive and rapidly changing
nature of the markets we compete in, the competitive marketplace
for talent and its impact on employee recruitment and retention,
and the other factors discussed in our most recent Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission. Cognizant undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities law.
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SOURCE Cognizant