Most Australians would switch retailers if AI found a better deal

Kaycee Enerva

30th Oct 2026

Retailers could face stiffer competition for shoppers this holiday season, with 85 per cent of consumers saying they would buy elsewhere if artificial intelligence (AI) found the same product at a better deal.

The finding comes from research commissioned by supply chain and commerce technology company Manhattan Associates.

The survey found that 83 per cent of Australians expect to use AI as part of their shopping activities in the coming months. The most common intended uses were comparing products, brands, and retailers (36 per cent) and finding the best deals or lowest prices (35 per cent).

Raghav Sibal, VP for Apac at Manhattan Associates, said the technology could make it harder for retailers to rely on established customer loyalty.

“If a shopper can find the same product for less elsewhere, they may be more willing to consider a retailer they haven’t purchased from before,” he said.

However, price alone may not determine where consumers complete their purchases.

The research found that 78 per cent of respondents would verify an AI-recommended deal through a retailer’s website or other sources before buying. Price accuracy was the main concern, cited by 52 per cent, followed by product information and reviews (23 per cent), and delivery times or costs (20 per cent).

Retailer websites and apps also remain the preferred channels for completing transactions.

While 35 per cent of respondents said they would be comfortable purchasing directly through an AI shopping assistant, 53 per cent would rather complete their transaction with the retailer.

Product availability and fulfilment could also influence AI recommendations. When comparing retailers offering the same product at the same price, 39 per cent of respondents said nearby stock availability should determine the recommendation. Free delivery was cited by 28 per cent, while faster fulfilment was preferred by 27 per cent.

The survey also found that 75 per cent of Australians would be willing to share their location with an AI shopping assistant to find products available nearby.

Sibal said retailers would need to ensure their prices, inventory information, and delivery options matched what shoppers were being shown through AI tools.

“An AI recommendation might bring a customer to a retailer’s website, but the retailer still needs to deliver on what that customer expects. If the price doesn’t match, the product isn’t available, or the delivery timeframe isn’t suitable, the customer can easily look elsewhere,” he added.