Jul 23, 2024
Reports
Smart Economy: the rise of virtual shopping agentsIn this era, characterized by the relationship between technology and human well-being and encapsulated in the concept of the Hyper Smart Society, innovations and new business models are evaluated based on the positive changes they bring to people’s lives and the shared value they create. The pandemic, climate change, the energy crisis, and other global crises are pushing toward a more sustainable, resilient, and human-centered society, leveraging new technologies. This inevitable change also affects the economic aspect, which is experiencing a new chapter based on the correlation between technology and well-being. The Smart Economy is an economic paradigm based on technological innovation, resource efficiency, sustainability, and social well-being. This model promotes innovation, productivity, and competitiveness with the goal of improving the quality of life. To achieve this, it is necessary to integrate new technologies to enhance resource efficiency and decision-making processes, fostering a favorable environment for a new shopping experience.
A New Shopping Experience
The retail sector is undergoing a significant transformation, driven by technological changes, rising consumer expectations, and global economic challenges. The future of retail will not be limited to simple online interactions but will evolve towards an increasingly personalized and omnichannel shopping experience. Consumers desire a seamless experience across various channels, including the web, mobile apps, social media, and physical stores. AI technologies will enable retailers to offer highly personalized shopping experiences based on advanced data analytics, predicting user preferences and providing tailored recommendations. In Italy, 38% of consumers report being satisfied or very satisfied with purchases in physical stores, while the combined satisfaction percentage for online channels reaches 50%. In the UK, satisfaction with physical purchases is nearly 80%, with online channel satisfaction reaching similar percentages. In the United States, 45% of consumers are satisfied with online purchases, while Brazil and Colombia show 47% and 43% satisfaction, respectively, for digital channels. 56% of consumers mainly shop at large-scale retailers, with a notable trend in the UK where 43% of buyers try to balance purchases between large-scale and local stores. Younger consumers tend to prefer large-scale retailers, while the balance between large and local retailers increases with age.
The Rise of Virtual Shopping Agents
In the urban context, retail is not only an economic driver but also a key factor in the spatial configuration of cities. The transformation of retail requires the redesign of urban spaces to better meet new needs. Urban planning must consider the integration of multifunctional spaces that combine residence, work, and retail, promoting livability and social interaction. New forms of hybrid stores will emerge, integrating physical and digital elements, such as Dark Stores, interactive showcases, pick-up points, and cashier-less stores. In Italy, guide shops (38%), event spaces (25%), and product customization areas (23%) are the most used resources in physical stores. In comparison, in the United States, consumers prefer photo-friendly environments (37%) and Scan and Go systems (36%). An additional innovation is represented by Agentive AI solutions. Specifically, these solutions include personal digital assistants based on advanced technologies that access services on behalf of users, collecting and analyzing personal data to offer personalized responses and actions. As a result, AI agents can revolutionize the shopping experience, especially for complex goods like houses. Users can rely on these virtual assistants to simplify the search and purchase process, customizing financial and logistical solutions to their specific needs. AI agents analyze income, asset, and contextual data to propose the best available options, interacting with other AI systems to ensure a seamless experience.
Banks Becoming Lifestyle Companies
Banks are evolving towards a lifestyle company model, where the focus shifts from merely providing financial services to broader integration into consumers’ daily lives. These institutions use transactional data to create personalized experiences, anticipating user needs and proposing tailored solutions. The EU’s PSD2 directive has paved the way for this model, allowing banks to collaborate with third parties to offer a wide range of integrated services. In Italy, 75% of consumers have 1 to 3 credit cards, with most cards issued by traditional banks. Only 12% use credit cards provided by retailers. In the United States, 32% of consumers have 4 to 6 credit cards, highlighting greater diversification compared to Italy. AI technologies are also revolutionizing payment processes, simplifying decision-making and offering optimal payment solutions based on personal finances and spending habits. For example, during the purchase of expensive items like cars or houses, AI can analyze financial options, suggest sustainable payment plans, and interact with other AIs to retrieve advanced configurations and personalized financing offers. In Italy, the preferred payment methods are cash and credit cards. Only 59% use digital wallets, with PayPal being the main choice. In the United States, 61% use digital wallets, with a strong presence of Apple Pay (37%).
The Invisible Bank
The concept of Embedded Finance is transforming the banking sector, integrating financial services into non-banking contexts such as e-commerce, healthcare, education, and transportation. This integration allows consumers to access personalized financial solutions directly within the context of their daily activities, without the need for traditional intermediaries. AI plays a crucial role in this scenario, analyzing data to offer personalized services, automate processes, and enhance user experience. By 2030, the bank could become an “invisible” entity, seamlessly integrated into people’s connected digital lifestyles. The consumer experience is increasingly digital, with an emphasis on the overall experience rather than just the act of purchase. Technology, particularly artificial intelligence, plays a crucial role in transforming the economy and improving social well-being, reducing barriers and promoting equity. Sectors are called to an unprecedented transformation driven by technology. While the digital and social impact on purchasing behavior is undeniable, the desire for experience is equally a priority for users.