Economic uncertainty looms and the impact of artificial intelligence is on consumer minds according to a new study from market researcher First Insight, which contends price dominates current purchasing decisions.
The study also indicates generational divides are affecting attitudes about affordability, and AI-driven personalization is impacting consumer purchasing.
Affordability and value continue to reign supreme with consumers, with 62% citing price as the most influential factor in their decision making. However, younger consumers are less price-driven than their elders: 56% of GenZers and 55% of Millennials list price as their top priority as compared to 71% of Baby Boomers and 68% of GenXers. The generational differences suggest companies must balance affordability with other value propositions to appeal to younger consumers. Yet, when it comes to other values, just 11% of consumers rank sustainability as a top factor, highlighting challenges for eco-conscious brands.
Gen Z, at 34%, is the most confident about their personal finances currently, while Baby Boomers, at 21%, reported the least confidence.
Among the key study findings on consumer attitudes, as related by First Insight:
- 57% are worried about a recession, with Gen X leading at 65%.
- 31% are prioritizing essentials such groceries and rent.
- 52% report that rising costs, including tariffs, will significantly impact their purchasing behavior.
- 25% plan to reduce the number of items they purchase in response to rising costs.
- 13% of consumers plan to use buy-now-pay-later options to manage rising costs driven by trade disputes and tariffs.
When it comes to sentiments on AI, 40% of consumers responding to the study report having interacted with AI-driven tools such as chatbots.. Among AI users, 75% said AI improves their purchasing experiences, with Gen X, at 79%, and Millennials, at 78%, leading in satisfaction. Then, 63% of GenZers report satisfaction, evidence that aligning AI with younger shoppers needs improvement, First Insight maintained. As for Boomers, 68% said AI tools have no impact on their purchasing decisions.
“In 2025, companies face a balancing act,” said Greg Petro, CEO of First Insight. “As consumers grapple with an uncertain economic outlook, they are demanding lower prices while still expecting smarter, more personalized experiences. Companies that embrace AI to deliver affordability alongside tailored solutions will not only navigate this challenging landscape but will also seize the opportunity to foster loyalty, drive growth, and stay ahead of the competition.”
