Are young adult consumers ready to be intelligent shoppers? The importance of perceived trust and the usefulness of AI-powered retail platforms in shaping purchase intention

Abstract

Purpose The advancement of artificial intelligence (AI) has brought intelligent online shopping experiences to customers. AI-powered retail platforms deliver personalized shopping experiences through tailored recommendations, promotions and assistance. Given the increasing preference for online shopping, it is crucial to explore methods to optimize the adoption of AI-powered retail platforms. To address this, this study aims to examine the impact of technology readiness motivators (optimism and innovativeness) and inhibitors (discomfort and insecurity) on perceived trust, perceived usefulness and purchase intention toward AI-powered retail platforms. Design/methodology/approach Data were collected from 276 customers in Egypt, primarily from the millennial and Gen Z demographic segments. The collected data were then analyzed using the statistical package for social sciences (SPSS) and partial least squares structural equation modeling (PLS-SEM). Findings The findings revealed that optimism, innovativeness and discomfort significantly influence perceived trust, while optimism, insecurity and perceived trust significantly influence perceived usefulness. Both perceived trust and usefulness are significant predictors of purchase intention. Perceived trust mediates the effects of technology readiness motivators on perceived usefulness and purchase intention. Moreover, perceived usefulness mediates the effects of technology readiness motivators, insecurity and perceived trust on purchase intention. Originality/value To date, there are few investigations regarding the acceptance and adoption of AI-powered retail platforms in developing countries. Thus, this study offers valuable theoretical and practical implications in the context of smart retail technology adoption.