How Generative AI and Social Media are Revolutionizing Purchase Decisions

In today’s digital age, the way consumers make purchasing decisions has evolved significantly. According to a recent survey by Capgemini, nearly 3 in 5 consumers have replaced traditional search engines with generative AI tools, such as ChatGPT, for product recommendations. With the growing influence of social media in the shopping journey, consumers are now turning to a combination of generative AI and social media platforms to help guide their buying choices.

Social Media’s Role in Shopping

Social media is increasingly becoming the go-to platform for shoppers. Capgemini’s study reveals that nearly a third of shoppers used social media to buy products and discover new brands in 2024, a number that has only grown from 2023. This trend is especially prevalent among younger generations. Over two-thirds of Gen Z have discovered a new product or brand on social media, with platforms like TikTok and Instagram leading the charge.

In fact, social commerce is seen as the key to reaching Gen Z. More than half of this generation has purchased a product through a social media platform, and the impact of social media on their buying decisions cannot be overstated. Research from the ICSC found that 85% of Gen Z says social media influences their purchasing decisions. For these shoppers, platforms like TikTok and Instagram are not just places for entertainment but trusted sources for product information, reviews, and even customer service.

Generative AI’s Growing Impact

Generative AI is playing an increasingly important role in shaping the shopping experience. Beyond simply recommending products, shoppers now want AI to aggregate search results from various sources — online search engines, social media, and retailers’ websites. This AI-powered aggregation allows consumers to get a more personalized and comprehensive view of their options, which ultimately aids in decision-making.

The preference for generative AI is not limited to younger generations. Although millennials, Gen Z, and Gen X are leading the charge in AI adoption, the technology is gaining traction across all age groups. Nearly 60% of consumers in the Capgemini survey reported using generative AI tools for shopping, and more than two-thirds of shoppers want these tools to provide personalized recommendations by analyzing their previous purchases and customer data.

The Future of E-Commerce

As consumers continue to rely on both generative AI and social media to enhance their shopping experiences, it’s clear that businesses must adapt to this shift. E-commerce brands that integrate AI-driven personalized experiences with a strong presence on social media platforms will be best positioned to capture the attention and loyalty of today’s shoppers.

The takeaway? Traditional search engines are becoming secondary to the combined power of social media and generative AI. For businesses, understanding this shift and integrating these tools into your strategy can be a game-changer in attracting, engaging, and retaining customers.

Source: Capgemini Survey, February 2025

As this trend grows, tools like hippist AI are well-equipped to help brands create tailored content and visuals for social media, providing the perfect blend of creativity and technology to boost engagement and drive sales.

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