Do humans still buy? Or are machines already making the decisions?

Rethinking consumer behaviour in the age of AI

July 29, 2025

Key takeaways

AI

AI-driven customer service boosts efficiency and quality, reshaping consumer expectations.

Line Illustration of light bulb

Voice engine optimization is essential to maintain visibility in rapidly changing digital interactions.

growth

Subscription growth thrives with AI through smarter predictions and natural personalization.

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Artificial intelligence Business transformation Management consulting Machine learning

Artificial intelligence is no background player when it comes to supporting consumer interactions. Instead, AI is an active part of the buyer journey. As businesses race to personalize experiences, improve service and drive conversions, the role of AI is expanding from behind-the-scenes assistant to front-line, primary decision maker.

This evolution raises an essential question: Are you marketing to human behaviour or to machine logic?

Voice search is the new front door

Voice technology—through smart speakers, mobile assistants and automotive integrations—is rapidly becoming a preferred method for consumer searches and a primary path to product discovery. If your content isn’t optimized for how people speak (versus how they type), you risk losing relevance and missing a major share of traffic.

Key optimization strategies include the following:

  • Adopt natural, user-driven, conversational language in content and FAQs.
  • Focus on both local search engine optimization (SEO) and voice engine optimization (VEO), leveraging question-based keywords and queries.
  • Ensure fast, mobile-optimized site performance.

Voice is no longer a novelty. It’s how your customer is already searching.

AI powers customer service

AI in customer service is transforming from a basic cost-saving measure to a powerful competitive differentiator. AI-powered chatbots and virtual agents can handle routine interactions 24/7, resolving issues more effectively. They can also improve overall customer satisfaction by:

  • Reducing response times
  • Increasing service availability
  • Enhancing accuracy in problem resolution
  • Lowering operational expenses
  • Scaling to capacity

AI isn’t just efficient—it’s redefining what “good service” looks like. AI allows your business to turn previously transactional engagements into loyalty-building opportunities.

AI-powered subscription models

AI significantly improves customer retention through real-time personalization and predictive analytics. Whether it’s recommending products, offering timely nudges to prevent churn or adjusting pricing strategies based on behaviour patterns, AI enables a more dynamic, responsive subscriber journey.

Companies utilizing AI-driven insights can:

  • Identify patterns behind cancellations, pinpointing churn risks to proactively retain customers.
  • Personalize content and offers in real time, making recommendations and tailoring promotional offers based on precise user data.
  • Predict lifetime value and segment users more accurately to maximize profitability.

Ultimately, companies that embrace AI to retain customers are positioned to compound growth.

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The ethics of AI

As AI becomes more deeply embedded in consumer decisions, ethical concerns are rising. Ethical AI is fundamental to brand reputation and customer loyalty.

Ethical AI oversight guards against the following:

  • Manipulative personalization: Algorithms can nudge consumers toward decisions they didn’t fully choose and/or products they don’t need.
  • Lack of data transparency: Consumers often don’t know how their information is being used or why they’re seeing certain material.
  • Bias and inequality: AI systems can replicate and scale existing social biases.

Forward-looking organizations must balance innovation with responsibility. This means auditing algorithms for bias, ensuring transparency in recommendations and data use, and communicating clearly about how AI is used in customer touchpoints.

Trust is the new currency. Ethical AI behaviours are central to earning it.

Navigating consumer behaviour

Algorithms already curate what consumers see, compare and buy. Yet the winners won’t be the companies that let code run the show. As the lines between human and algorithmic decision making blur, businesses face a critical juncture in understanding and adapting to an increasingly AI-driven marketplace.

Organizations that proactively address this shift, leveraging AI thoughtfully and ethically, will stay aligned with evolving consumer preferences and create long-term growth.

Companies can use AI to illuminate consumer intent and then turn that insight into differentiated experiences. The alternative is letting someone else’s algorithm decide where your brand fits, or whether it fits at all.

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