OPENNESS TO NEAR FUTURE AI CAPABILITIES
OPENNESS TO NEAR FUTURE AI CAPABILITIES
Enhancing our
understanding of
how consumers
are using AI
Now and next
Technology
Attitude
Retail
Scenarios
AI
Usage
9Smart Technologies
Categories
21Retail
Sectors
65Scenarios
Explored
11K+
NAT REP
Respondents
13Worldwide
Markets
Retail Revolution | Openness to near future AI capabilities 2
ABOUT THE RETAIL REVOLUTION
OMD’s global multi-phased research study tracks AI perceptions and adoption, as well as investigates how voice AI should be applied to create more valued and
valuable brand experiences across the consumer journey.
Through multiple research phases, we track and explore
people’s AI adoption, utilization, perceptions and desires
Retail Revolution | Openness to near future AI capabilities 3
PARTNER
COLLABORATION
AI PERCEPTONS &
ADOPTION
HOW PEOPLE INTERACT WITH
VOICE IN THEIR DAILY LIVES
1 2 3OPENNESS TO NEAR
FUTURE AI CAPABILITIES
4
(Quantitative survey) (Qualitative research) (Quantitative survey)(Workshops)
Research Phases
All figures in this report are derived from quantitative online surveys representative of the total population (18+ years old). This quantitative survey was conducted
across 13 countries in September 2019 with a total sample size of 11,582. The questionnaire was designed to compliment the qualitative research phase.
UK NL SP IT DE SW BE US AU IR GR SA CN
890 954 838 820 943 885 923 914 915 852 812 816 1020
2019 Sample Size by Market
While smart technology adoption is increasing
across markets, some markets are more prepared
for voice, while others remained focused on image.
These market differences should guide the way
brands consider the roll out of their propositions.
People are open to using voice, however post
adoption there is a decline in usage and
excitement. With a third receiving a smart speaker
as a gift, there are a number of less active owners,
creating an opportunity for brands to inspire usage.
Focus should be on increasing
usage frequency after adoption
Many users still express concern about how
their data is being used and expect brands to
take responsibility for these concerns. Users are
more willing to share data when they can see
the logic behind the collection and use.
Data sharing remains
a concern amongst users
4
Smart technologies are at different
stages of adoption across markets
Retail Revolution | Openness to near future AI capabilities
It is no longer if and when,
but how people are using AI
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, 5
100% Internet Users
89% Have Used AI
76% Use AI weekly
61% Own Smart Technology
6
However, AI
technologies
are at different
stages of
adoption Smart Technology
Ownership
32% claim to own a
smart speaker
54% claim to own a
smart TV
device
32% claim to own a
wearable
device
23% claim to own a
smart lighting
19% claim to own a
smart home
monitoring
21% claim to own a
smart thermostat
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=8817 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia
And, markets are embracing AI technologies at different rates
7
Emerging: Screen Reliant Establishing: Open to Voice Established: Voice-Ready
Lower usage and overall openness to AI technologies.
They have only recently had access to local voice-
enabled device (or are using English versions) due to
language complexities or market size. As a result,
screen-based smart technologies, such as Image
Search, are more popular.
More open to smart technologies and are excited about
their potential. They have less established voice eco-
systems and while Voice adoption and usage are
increasing rapidly, screens remain their preferred for
smart technologies now.
Voice is quickly becoming mainstream in these
countries, with usage of Voice assistants on par with
screen-based smart technologies. These markets were
among the first to receive voice-enabled devices and
have a more established voice eco-system as a result.
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, ChinaCategories are based on adoption + access to voice enabled devices
NL, SW, BE, GR. IR, ES, IT, AU, KSA, CN UK, US, DE
Voice Adoption
10 of the 13 markets monitored have local language options
8
Four languages
English (US, CA)
French (CA)
Spanish
NORTH
AMERICA
One language
SpanishLATIN
AMERICA
Two language
Spanish
Portuguese
EMEA
12 languages
English (UK)
German (DE, AT, CH)
French
Spanish
Italian
Russian
Danish
Norwegian
Dutch
Swedish
Turkish
Five languages
English (UK)
German
French
Spanish
Italian
ASIA
PACIFIC
Three languages
English (AU, IN)
Japanese
Seven languages
English (AU, SG)
Japanese
Korean
Hindi
Thai
Indonesian
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: https://developers.google.com/actions/localization/languages-locales, https://developer.amazon.com/docs/custom-skills/develop-skills-in-multiple-languages.html
First mover advantage with local language capabilities
determines Smart Speaker market dominance
9
Country Amazon Echo Google Home Apple HomePod
EM
EA
United Kingdom 2016 2017 Feb 2018
Germany 2016 2017 Jun 2018
Ireland Jan 2018 Jun 2018
Italy Oct 2018 Apr 2018
Spain Oct 2018 Jun 2018
Sweden Oct 2018
Netherlands Oct 2018
NA United States 2014 2016 Feb 2018
AP
AC
Australia Feb 2018 2017 Feb 2018
India 2017 Apr 2018
Retail Revolution | Openness to near future AI capabilities
Source: https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=202207000, https://support.google.com/googlehome/answer/7550584?hl=en-GB, https://voicebot.ai/2018/11/23/the-lowest-black-friday-prices-weve-seen-on-smart-speakers-and-smart-displays/
Receiving it as a gift is one of the most common pathways to
Smart Speaker ownership
10
Reasons for Smart
Speaker Purchase
27%
It was a gift
27%
I wanted a music
speaker with voice
control
24%
I wanted more
everyday
convenience
24%
I like having the latest
technology
24%
I wanted something
new and was
intrigued to try voice
19%
After trying it out, I
wanted my own
18%
There was an offer
that I couldn’t refuse
18%
I wanted to automate
my house
17%
I wanted the social
benefit and
entertainment
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia
Retail Revolution | Openness to near future AI capabilities
Voice delivers a
strong experience
– but it is far
from perfect
11
Even though Voice is the leading AI technology for some consumers, it is
still in its infancy. As a result of the screenless interaction, consumers are
being delivered simplified responses to their questions that fit in a
conversational delivery and narrowed list of options, which has implications
for brands as people move some of their brand interactions beyond a
screen. This presents an ideal opportunity for brands to take advantage of
the growing acceptance of Voice to both gain presence across the medium,
as well as to learn what does and doesn’t work.
Voice is mainly
used during
downtime or
while on-the-go.
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China
Source: Retail Revolution, OMD, 2019, Base: Voice Assistant Users n=4,693 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China
12
While cooking
Down/Leisure time
On-the-go
Entertaining
During mealtimes
Night-timeReady for day
When waking up
Working out
USA Ireland UK Sweden
BelgiumNetherlands Germany Spain
Italy Greece
At Work
61%59%
54%50%50%48%48%
41%38%
32%
64%62%
58%58%56%
53%51%
47%46%
42%
57%53%
47%44%44%
42%41%
35%29%
27%
59%55%
48%46%
41%38%37%36%36%36%
67%
59%
57%
54%
53%
50%
47%
47%
47%
44%
66%
63%
55%
53%
53%
50%
47%
46%
45%
44%
63%
63%
52%
50%
45%
45%
41%
40%
33%
29%
62%
62%
59%
56%
53%
52%
45%
45%
45%
37%
72%64%
59%51%
49%49%
45%41%40%
38%
84%
73%
67%
66%
65%
65%
65%
63%
62%
61%
Australia
52%43%42%
38%37%34%34%
29%27%
23%
57%voice
users
56%voice
users
53%voice
users
48%voice
users
41%voice
users
37%voice
users
45%voice
users
59%voice
users
66%voice
users
50%voice
users
49%voice
users
KSA China87%
75%
74%
71%
70%
68%
65%
62%
58%
58%
62%
59%
58%
56%
56%
49%
46%
43%
41%
39%
86%voice
users
86%voice
users
We need to shift our
focus from adoption
to frequency of usage
13
78% Open to using
a Voice Assistant
51%Have used Voice Assistant
11% Less than
once a month
8% Monthly
18% Weekly
18% Daily
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
There are three main types of Voice users being
established
14
27%use voice assistants more
than at first, finding new uses and
applications to try
Experimenters
26% use voice assistants
less than when they first got it
Lapsed/Lapsing
47% don’t feel they are using voice
assistants to their full potential but don’t
know how they would live without it
Comfort Zone
Us
ag
e
High usage due to initial
excitement of purchase
and novelty of usage
Honeymoon
Time
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=6,428, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China
Established
markets tend to
have more
experimental
users, while
emerging markets
are lapsing
15
28%
48%
USA
50%
Australia
46%
Sweden
43%
Netherlands
27%
48%
UK
31%
50%
Germany
51%
Ireland
45%
Belgium
34%
46%
Spain
28%
52%
Italy
41%
Greece
Experimenters Comfort Zone Lapsed/Lapsing
24%
25%
31%
25% 31%
32%
19%
36%
20%21%
27%
19%
25%
28%
23%
23%24%
43%
KSA
32%
25%
China
42%12%
46%
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=6428, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China
Generally, these users have purchased a Smart
Speaker for everyday convenience. They often
have young children in the household who promote
Voice experimentation for the entire family.
Tech-savvy, convenience focussed, more
trusting of technology
Voice has becomes a familiar part of their daily
lives, often centred around a few core skills and
basic functions. These users are more likely to
skew older and are less likely to have young
children in the household.
Less trust in technology and particular
concerns about new technology privacy
Comfort Zone
The decrease in their usage is due to an
absence of comfort and/or unsuccessful
experimentation with Voice. This group have
often become Smart Speaker owners through
gifting (36%).
Price-sensitive to smart technology and
generally less trusting of technologies
Lapsing / Lapsed
16
Experimenters
Retail Revolution | Openness to near future AI capabilities
57% want easier ways
to discover new features
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia17
The biggest opportunity for Voice engagement applications now:
Recipe guidance
and ideas (76%)
Family
entertainment (69%)
Booking restaurant
reservations (69%)
Comparing energy
providers (67%)
Video content
discovery (67%)
Accessing medical
advice (65%)
(% Openness)
People are willing to share data for simple voice
transactions
18
Willing to pay for…Willing to share data for…
19% Receiving
coupons or offers
18% Comparing
energy providers
17% Booking a
restaurant
17% Step-by-step
recipe guidance
17% Ideas for
healthier recipes
17% Accessing
medical advice
12% Entertainment
for the family
12% Accessing
medical advice
11% Helping you
with a tax
submission
10% Pay bills,
such as electricity,
phone, bills, etc.
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia
33%of people claim to have tried voice shopping
19Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
Voice presents the greatest opportunity for purchasing in the
future compared to Image Search
20
Already
purchased:
Open to making
purchases:
14% 31% 30% 22%
39% 43% 39% 45%
33% have used voice to make a purchase
68% are open to using voice to make a purchase
Chatbot:Image
Search:
Voice
Assistant:
Smart
Speaker:
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
44% want easier ways
to shop using their voice
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia21
The biggest opportunity for Voice purchases are:
Ordering
a taxi (48%)
Buying video-on-
demand content (47%)
Ordering food
delivery (45%)
Booking cinema
tickets (45%)
Buying set meal
ingredients (43%)
Event
tickets (43%)
(% Openness)
Retail Revolution | Openness to near future AI capabilities
Image Search is
an emerging
behavior to
take note of
22
Text still is the main way people are searching. However, with recent
advancements in image recognition, we are starting to see the adoption of
image search. It works best when it answers questions that are hard to put
into words. For example, “what is this?” or “what goes with this?”. Without
an image, these questions are complex to describe and many times not
specific enough to reliably return consistent results. Brands should consider
when people will use image search and enhance functionality around these
moments, understanding the technology’s capabilities.
Image Search presents an
opportunity, with high
existing use
23
87% Open to using
Image Search
75% Have used Image Search
13% Less than once
a month
13% Monthly
23% Weekly
27% Daily
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
Inspiration and
information
are the main
uses of Image
Search
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Image search users n=9016, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China24
Get information
Fun and Entertainment
Identify objects
Click-to-purchase on Social Media
Ease of purchase
Augmented Reality
USA Ireland UK Sweden
BelgiumNetherlands Germany Spain
Italy Greece KSA China
Australia
40%
40%
34%
32%
26%
9%
39%
38%
36%
31%
23%
8%
36%38%36
%25%23
%10%
48%
33%
34%
26%
22%
11%
43%
43%
37%
29%
14%
9%
44%
38%
35%
28%
10%
6%
46%
41%
37%
25%
9%
11%
39%
44%
48%
36%
33%
15%
39%
48%
52%
40%
26%
13%
52%
49%
57%
49%
34%
13%
47%
57%
55%
50%
44%
32%
36%
52%
50%
50%
57%
31%
43%
39%
32%
30%
19%
7%
51% want results that are more
inspirational and entertaining
25
The biggest opportunity for Image Search engagement applications now:
Instructional Information
– Plants/ Pets (73%)
Travel
Suggestions (71%)
Recycling
information (70%)
Decorating
inspiration (67%)
Recipe
suggestions (67%)
Purchase
comparison (66%)
(% Openness)
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Image search users n=7337, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia
28%of people claim to have tried image shopping
26Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
58% want more accurate Image
Search results
27
The biggest opportunity for Image Search purchases now:
Fashion,
Clothing (40%)
Buying set meal
ingredients (40%)
Ordering food
delivery (38%)
Buying video-
on-demand content (38%)
Groceries
(38%)
Booking travel
(37%)
(% Openness)
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Image search users n=7337, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia
Retail Revolution | Openness to near future AI capabilities
Consumers are increasingly worried about how much data is
being collected and how it is being stored, anonymized and
used. And, they believe it should be brands who take
responsibility for addressing their new technology privacy
and security concerns. As a result, people’s trust in AI is
fragile and must be carefully cultivated by brands.
However, ongoing positive experiences are overcoming
people’s fears around new technologies. Marketers need to
sense check that they are creating experiences that people,
and the technology, are ready for now.
Brands need to
build trust step
by step
28
40% of people
trust smart
technologies
in their lives
29
67% Expect brands to take responsibility
for technology advances that may
compromise privacy
65% Worry about the security and
privacy of new technologies
65% Are concerned about how much
data is being collected
34% Don't mind sharing data because
they feel like they have nothing to hide
33% Are happy to share data in exchange
for personalized services and offers on
regular purchases
28% Believe the data collected is only
used to improve AI products and
voice-control functionality
And, few are ready to share their data with
brands if how it is being used is unclear
Consumers hold brands responsible for
addressing their privacy and security
concerns around new technology
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
But, people’s AI expectations are in tension with their current
levels of trust
30
67%
64%
61% 61% 61% 60% 60%59%
54%
50%
34%
45% 45%
63%
78%
41%
52%
46%
52%
32%
55%
50%
34%
36%
45% 46%
62%
54%52%
48% 49%51%
42%
53% 53%
39%
41% 42%
35%
40%43%
57%
40%
32%
41%
30%
33%32%
30%
26% 27%27%
Spain KSA China USA Italy Ireland Germany Australia UnitedKingdom
Netherlands Sweden Belgium Greece
I think smart technologies are always listening I think smart technologies are too invasive
I worry about technology misinterpreting me and giving me wrong or inaccurate results I have started to limit the use of certain technologies because of recent news stories
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China,
People are more open to AI and data sharing
for simple transactions, which are natural
progressions of their current behaviours
31Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
24%Sharing your taste
preferences with a
beverages brand to
receive inspiration
21%Allowing a TV streaming brand to
have access to all your other TV
subscriptions and viewing habits
to manage and optimize your
subscriptions, saving you money
and enhancing recommendations
21%Sharing your past grocery
purchases with a food brand to
receive automated shopping
orders for you to approve
12%Providing a car
manufacturer with
access to your
calendar for
customized
content while
driving (i.e. local
podcasts, etc.)
11%Providing
access to your
smartphone
photos to a
fashion or
beauty retailer
to get
customized
promotions and
suggestions
11%Allowing a
telecoms brand
to analyze your
voice to
understand
your emotional
state to provide
you with better
customer
service
Openness
Thinking about future technology, people want easier ways to
discover new features and uses
32
72%71%
68%
65%
68%
60%
56% 56% 55%
50% 49% 49%47%
60% 59%
69%
49%
63%
42% 42% 41% 41%
36%
29%32% 32%
65% 64%
68%
54%
62%
44%42%
46%
42%
38%
32%
35% 36%
Spain Italy China Greece KSA USA Australia Ireland UnitedKingdom
Germany Sweden Belgium Netherlands
Easier ways to discover new features and uses
Better facial/ voice recognition in order to personalise suggestions and actions
More automation options (i.e. moving from lights to appliances, answering phone calls, etc.)
Retail Revolution | Openness to near future AI capabilities
Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,
Retail Revolution | Openness to near future AI capabilities
There is a role for
brands who commit to
transparency when
using data to enhance
favorability and uptake
33
Brands have an opportunity to build awareness and encourage usage
through their products and channels, providing reasons for consumers
to establish regular usage. However, these initial experiences should
be part of a larger vision to explore new models to unlock data and
development opportunities. Brands need to map out how they can
create experiences that fit within what people are comfortable with
right now to build acceptance and give people a reason to engage.