How consumers are embracing AI and what brands can do to capitalize on it

AI is changing the way consumers interact with brands. From hyper-personalized content to voice-activated shopping assistants, today’s consumers expect experiences that are dynamic, tailored, and seamless.

For brands, this shift presents both a challenge and an opportunity: adapt to these rising expectations or risk falling behind. Meeting consumers higher up the purchasing process—with smarter tools, better insights, and innovative technologies—has become essential to staying competitive.

Let’s explore how AI-powered tools like chatbots, predictive analytics, AR/VR, and voice search are transforming consumer behavior—and how brands can capitalize on this to build loyalty and drive sales.

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The power of tailored content

Today’s consumers expect content that feels like it was made just for them. AI-powered tools make this possible by helping brands understand individual preferences and guide shoppers smoothly through the decision process, from browsing to buying.

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Search is a big part of this journey, with 55% of consumers naming it their top source for pre-purchase research. But if brands are to deliver the personalized experiences consumers crave, a basic SEO strategy packed with keywords won’t cut it. They need to think bigger and create topic clusters—a way of linking a main subject to related subtopics to build a comprehensive, engaging content ecosystem.

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Take a brand selling eco-friendly skincare. Instead of focusing on one keyword, it could build out clusters around a core topic like "sustainable skincare benefits," adding related subtopics such as "key ingredients," "how it helps the planet," and "cost comparisons with traditional products." This approach answers a range of consumer questions and keeps them engaged at every stage of their decision-making process. It's more than just smart SEO—it’s about creating a seamless experience that feels valuable and intuitive.

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How brands can leverage AI for deeper personalization

Brands can take this one step further by using AI to gain valuable insights into customer behavior, from browsing patterns to purchase history. This data allows them to craft dynamic content that adjusts to individual user profiles—meeting consumers at key touchpoints with highly personalized content.

Sticking with the example above, a skincare brand might use AI to analyze a user’s history of skincare purchases and then offer a tailored guide on “top products for dry skin” to a returning shopper with sensitive skin.

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How digital asset management (DAM) supports tailored content

Personalization at scale can feel overwhelming, but Wedia’s DAM system makes it seamless. By tapping into AI-powered content insights, brands can gain a clear picture of audience behavior and preferences, helping them create content that genuinely resonates.

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Wedia also takes personalization further with its dynamic content delivery capabilities. Whether it’s a product video on mobile or an interactive tool on desktop, Wedia ensures that the right content reaches the right audience at the right time. The result? Stronger connections, more meaningful engagement, and a smoother buying journey for consumers—delivered with ease and efficiency.

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How chatbots and virtual assistants help facilitate purchase decisions

AI-powered chatbots have the potential to be extremely important tools in the pre-purchase information gathering process.

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But while 44% of consumers say they would be interested in using chatbots to search for product information before making a purchase decision, only 4% actually do. There is a clear disconnect between what consumers want and need, and what existing chatbots are able to offer.

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This presents an opportunity for brands willing to adopt a ‘launch and learn’ approach to generative AI, especially as chatbot usage continues to rise. Today, 60% of B2B and 42% of B2C companies use chatbot software, with a projected growth of 34% by 2025.

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Over the next few years, this growing adoption is set to transform customer interactions entirely. Advanced AI models like GPT-4, Google’s PaLM 2, Anthropic’s Claude 2, and Meta’s LLaMA are leading this evolution, empowering chatbots to go beyond basic responses. These sophisticated large language models (LLMs) deliver nuanced, human-like engagement, allowing chatbots to adapt to the unique needs of each consumer and simplify complex purchasing decisions.

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How Wedia can help

Wedia centralizes the content chatbots pull from, such as product images, videos, and descriptions. By organizing and storing brand assets in one place, DAM enables chatbots to offer detailed, accurate, and visually rich responses that deliver personalized, accurate information to consumers.

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More immersive consumer experiences with AR and VR

AI, augmented reality (AR), and virtual reality (VR) are revolutionizing the way consumers make purchasing decisions by bringing 'try before you buy' options into both online and in-store experiences.

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For brands, this is a game-changer—especially as physical retail remains essential, with more than half of consumers preferring to shop in-store. However, while shoppers still value in-person experiences, they are also looking for tech innovations that elevate and personalize these interactions. According to a recent study by global payments and shopping service, Klarna, 81% of Gen Z and Millennials expect AR to enhance in-store shopping, indicating a clear demand for immersive tools that streamline decision-making.

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In sectors like fashion and beauty, where fitting and visualization play key roles in purchases, AR-driven virtual try-ons are making it easier for consumers to envision products in real-time. For instance, Walmart allows customers to use their own photos to “try on” items digitally, while Google’s ‘virtual try-on’ feature enables users to view clothing on models with diverse body types, skin tones, and hair textures across multiple retailers. AI supports these visualizations, using data to recommend specific products—such as matching foundation shades or complementary accessories—based on unique characteristics.

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This tech innovation extends beyond online shopping, enriching the in-store experience as well. Smart fitting rooms, equipped with AI-powered mirrors, allow customers to visualize clothing, request sizes, and receive style suggestions without needing to physically try on the item. Luxury brand Coach has even introduced AR mirrors at storefronts that let passersby “try on” handbags in a virtual space, creating a dynamic and interactive shopping environment.

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For brands, adopting these tools now is crucial to stay ahead of changing consumer expectations. As Klarna’s study shows, 48% of shoppers expect to use virtual dressing rooms for future purchases, and 59% are open to in-store robots for measurements and styling suggestions. By investing in AI-driven personalization and virtual shopping experiences, brands can start meeting these demands, building loyalty with today’s shoppers while preparing for a more immersive retail future.

Where Wedia comes in

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Wedia’s DAM solution supports AR and VR by managing high-resolution assets that can be used across immersive platforms. Brands can store, organize, and distribute AR/VR assets, ensuring fast, scalable deployment for digital experiences that resonate with consumers and reduce friction in the buying journey.

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Predictive analytics that anticipate consumer needs

If brands can harness the power of predictive analytics, it’s not just sales they’ll improve—it’s customer retention and brand loyalty.

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Predictive analytics allow them to understand which customers are likely to benefit from additional products and services, as well as actively anticipate future needs and trends before consumers are aware of them. It can also improve customer engagement by predicting which ones are at most risk of churning and how best to reach out to them in a way that resonates.

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Predictive consumer needs and strengthening brand loyalty

Retail brands can use predictive analytics to track upcoming seasonal shifts, aligning their digital promotions with changing weather patterns. This allows them to anticipate when a consumer might need a wardrobe update and offer relevant items just as demand naturally spikes.

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McDonald’s used predictive analytics to customize the consumer experience. It came up with drive-thru digital menus that change based on a variety of factors—from the time of day to weather, and to historical sales data. That way, they could offer customers a cold beverage on a hot day or a coffee with their breakfast menu.

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Predictive analytics also plays a role in enhancing customer loyalty by making shopping experiences feel effortless and proactive. Grocery delivery services like Instacart analyze purchasing patterns to suggest replenishments on staple items just as they run low, saving consumers the time and mental effort of manually restocking their pantry. This predictive layer responds to lifestyle needs and habits, demonstrating a deep understanding of consumers' routines and preferences.

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Improving customer support and reducing churn

Customer support is another area where predictive analytics shines. It can identify recurring issues before they escalate, allowing brands to take proactive measures. For instance, if a utility provider detects patterns of increased energy usage during extreme weather conditions, predictive insights can prompt proactive measures such as notifying customers about expected high demand, offering energy-saving tips, or even recommending tailored energy plans.

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Tools like Velaris elevate this approach by using AI to analyze past customer interactions and recommend personalized next steps, such as offering a solution or incentive before dissatisfaction sets in. Predictive analytics also helps identify at-risk customers, enabling brands to intervene with tailored incentives or support that re-engage them. By anticipating needs and acting early, brands can improve the customer experience, reduce churn, and foster lasting loyalty.

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Added convenience with voice search

Consumers are increasingly turning to voice assistants like Alexa and Google Assistant to get quick answers, manage their schedules, and make purchases. Half of the US population uses voice search features daily and from 2019 to 2021, as many as 8.9 million health and beauty products, 8.8 million electronics, and 8.5 million household supplies were purchased via smart speakers.

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This highlights the rising adoption of voice commerce and for brands, a big opportunity to tap into a growing segment of consumers who value the simplicity of asking questions in natural language and shopping hands-free.

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Voice search in action

Walmart and Home Depot are two brands that have already embraced voice-activated technology to enhance the consumer experience.

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Walmart has partnered with Google to integrate voice search into its shopping ecosystem. Customers can use Google Assistant to create shopping lists, add items to their online carts, or even initiate checkout using just their voice. Users can retrieve purchase history, streamline reorders, and choose between delivery or in-store pickup for a fully flexible shopping experience.

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Similarly, Home Depot offers its own voice assistant, Home Depot Skill, compatible with Alexa, Google Assistant, and Apple HomePod. Customers can find products, check prices, and access product details through conversational commands. The Home Depot app also takes voice capabilities further by using natural language processing to answer specific questions like, "What size screws do I need for drywall?"

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By integrating voice-enabled tools, brands can cater to consumer preferences while strengthening omnichannel experiences. This ensures that customers—whether shopping for skincare products or home improvement supplies—receive relevant, efficient, and engaging support, no matter how they choose to shop.

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Are you ready to harness the power of AI?

AI is reshaping the way consumers interact with brands, driving demand for more personalized, immersive, and seamless experiences.

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However, managing and delivering the sophisticated content required for these experiences can be complex.

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This is where Wedia makes all the difference. With centralized asset management, automated content creation and organization, and dynamic media rendition and distribution, Wedia empowers brands to embrace innovation, meet evolving consumer expectations, and stand out in a competitive marketplace.

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For more information on how Wedia DAM can help your brand thrive in the AI era, book a demo today.

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