India’s Gen Z turns to AI for product research but prioritises quality, trust and price
A YouGov-Rukam Capital study of 4,002 Gen Z consumers finds 60% use AI for product research, while 51% rank quality and 49% rank price among top purchase drivers. Brand transparency matters to 82%, and 74% say customer experience builds trust.
What happened
YouGov and Rukam Capital’s India Gen Z study finds quality, price, transparency and customer experience drive purchase decisions. Consumers increasingly use AI
Key facts
- 4,002 Gen Z respondents
- 18 states in India
- 82% expect brand honesty and transparency
- 51% cite quality as top purchase driver
- 49% cite price as a top purchase driver
- Nearly 60% use AI for product research
- 70% are comfortable with AI recommendations
- 49% would allow AI to decide without approval
- 28% use quick commerce
- 60% spend more during festive season
- 74% say good customer experience builds trust
Why this matters
Prioritize partnerships or acquisitions in product-information management, AI shopping assistants and trust-building CX tools that improve conversion without reducing consumer control.
What to watch
- Growth in AI-referred traffic and conversion rates from search, chat assistants and in-app recommendation tools.
- Consumer complaints or regulatory action involving undisclosed sponsored AI results, hallucinated product claims or synthetic reviews.
- Widening performance gap between brands with rich, verified product data and brands with incomplete catalog information.
- Rising demand for live support, store pickup, video consultation or WhatsApp confirmation after AI-led product research.
- Increases in returns or customer-service contacts from AI-recommended purchases, indicating weak recommendation quality.
- Adoption of standardized product provenance, review verification and price-transparency signals by major Indian marketplaces.
- Make product feeds AI-readable: structured specifications, availability, price history, compatibility details, comparison tables and policy information.
- Treat transparency as conversion infrastructure: disclose sponsored placements, verify reviews, show total delivered price and make returns, warranties and seller identity prominent.
- Deploy AI assistants primarily for discovery, education and narrowing choices; preserve explicit consumer control and easy escalation to human support.
- Unify online, app, social, WhatsApp and store inventory and pricing to prevent trust-damaging channel inconsistencies.
- Measure AI-assisted commerce separately: AI-originated discovery, assisted conversion, return rate, service escalation, repeat purchase and trust/NPS outcomes.
- Prioritise quality proof over promotional copy through demos, certifications, user-generated evidence, durability information and post-purchase support.
Also reported by
- ET Brand Equity — Same time