New Delhi: India’s Gen Z is gradually making room for artificial intelligence in everyday decision-making, but the generation does not appear ready to hand over the reins completely, reveals Rukam Capital, a venture capital firm investing in early-stage brands.
In its latest consumer study, titled “Gen Z: A Deep Dive into India’s Most Influential Consumer Cohort,” conducted in collaboration with YouGov, demonstrates a stark difference in how young consumers uses AI at a first place. They are comfortable with AI recommending products or services, helping them compare options and even supporting decisions around healthcare, education and finances. However, when Gen Z was asked about giving AI full control over final decision-making, the comfort drops to a certain extent.
The findings chart emerging consumer expectation around AI: Gen Z appears to prefer AI as a decision-support system rather than a decision-maker.
AI Emerges as a Shopping Co-Pilot, Not Just a Search Tool
Gen Z has already started AI frequently during their shopping journey. Almost 60% of survey participants admit that they have used AI in some way to decide what to purchase, while only 14% have never used AI in the shopping process.
However, the ways they use it are even more important than the frequency of use.
Commonly, this generation uses AI for evaluating products. 31% use it to compare products/services or brands, while 29% – to find the best price/deal. Also, 29% use it to learn about product features and specifications.
It doesn’t stop there. There are more applications of AI beyond just searching for information.
Nearly 24% use it to evaluate if something is worth being purchased, while 22% – to find substitutes for the items they are thinking of. Also, 22% use AI to read or summarize reviews.
It is worth noting that finding new products/brands is one of the less frequent ways to use AI in purchases, as 17% of respondents stated. The pattern suggests that, for Gen Z, AI is currently turning evaluation layer than as a discovery engine. Instead of replacing the entire shopping journey, it is helping consumers process information faster, compare options and arrive at a more informed choice.
For brands, this could make the AI-readiness of their digital presence vital. Being discoverable online may no longer be enough. Product information, specifications, pricing, reviews and other details may need to be structured in ways that can be understood and processed by AI-led interfaces.
Gen Z trust AI recommendation, but comfort drops in giving control over final decisions
A similar difference occurs when respondents are asked about AI’s role beyond shopping.
As many as 70% say they are comfortable with AI recommending products or services, indicating a high degree of openness to AI-assisted choices.
That comfort extends to several relatively personal areas. Around 65% are comfortable with AI personalising healthcare or wellbeing recommendations, while 63% are comfortable using AI to help choose a career or educational path. An equal 63% are comfortable with AI recommending what they should watch, listen to or read.
Financial decisions are also entering the AI-assisted zone, with 62% comfortable with AI helping them make financial decisions.
However, there is a noticeable drop when AI moves from recommendation to autonomy.
Only 49% are comfortable with AI making decisions on their behalf without requiring their final approval.
The distinction is important. Gen Z does not appear to be resisting AI itself. Instead, the data suggests that it is drawing a line between being assisted by AI and being replaced by it in the decision-making process.
For technology companies, this could influence how the next generation of AI products is designed. Features that explain recommendations, offer choices and allow users to retain final approval may align more closely with this preference than systems that operate entirely without human intervention.
Gen Z is deeply reliant on the internet, with many feeling uneasy when offline
The increased involvement of AI occurs within a much larger context of technological dependence.
For Gen Z, technology is no longer limited to particular activities, such as entertainment, shopping or communicating. In fact, 72% claim that their smartphone is the hardest device to go without for a month and 57% would struggle without the Internet or Wi-Fi access.
The dependence manifests itself in all areas of everyday life. 71% claim to depend on technology for everything in their daily lives and 78% think technology makes life easier.
At the same time, Gen Z seems to be aware of the bargain that lies behind this comfort.
In fact, 74% admit that they sometimes use the Internet longer than planned, 64% actively try to have breaks from using digital devices and another 65% feel uncomfortable being unable to access the Internet. This adds another element to the story of technology.
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