OPENNESS TO NEAR FUTURE AI CAPABILITIES… · Retail Revolution | Openness to near future AI capabilities 3 PARTNER COLLABORATION AI PERCEPTONS & ADOPTION HOW PEOPLE INTERACT WITH

OPENNESS TO NEAR FUTURE AI CAPABILITIES

Enhancing our

understanding of

how consumers

are using AI

Now and next

Technology

Attitude

Retail

Scenarios

AI

Usage

9Smart Technologies

Categories

21Retail

Sectors

65Scenarios

Explored

11K+

NAT REP

Respondents

13Worldwide

Markets

Retail Revolution | Openness to near future AI capabilities 2

ABOUT THE RETAIL REVOLUTION

OMD’s global multi-phased research study tracks AI perceptions and adoption, as well as investigates how voice AI should be applied to create more valued and

valuable brand experiences across the consumer journey.

Through multiple research phases, we track and explore

people’s AI adoption, utilization, perceptions and desires

Retail Revolution | Openness to near future AI capabilities 3

PARTNER

COLLABORATION

AI PERCEPTONS &

ADOPTION

HOW PEOPLE INTERACT WITH

VOICE IN THEIR DAILY LIVES

1 2 3OPENNESS TO NEAR

FUTURE AI CAPABILITIES

4

(Quantitative survey) (Qualitative research) (Quantitative survey)(Workshops)

Research Phases

All figures in this report are derived from quantitative online surveys representative of the total population (18+ years old). This quantitative survey was conducted

across 13 countries in September 2019 with a total sample size of 11,582. The questionnaire was designed to compliment the qualitative research phase.

UK NL SP IT DE SW BE US AU IR GR SA CN

890 954 838 820 943 885 923 914 915 852 812 816 1020

2019 Sample Size by Market

https://www.omd.com/thoughts/retail-revolution-how-people-interact-with-voice-in-their-daily-lives/

While smart technology adoption is increasing

across markets, some markets are more prepared

for voice, while others remained focused on image.

These market differences should guide the way

brands consider the roll out of their propositions.

People are open to using voice, however post

adoption there is a decline in usage and

excitement. With a third receiving a smart speaker

as a gift, there are a number of less active owners,

creating an opportunity for brands to inspire usage.

Focus should be on increasing

usage frequency after adoption

Many users still express concern about how

their data is being used and expect brands to

take responsibility for these concerns. Users are

more willing to share data when they can see

the logic behind the collection and use.

Data sharing remains

a concern amongst users

4

Smart technologies are at different

stages of adoption across markets

Retail Revolution | Openness to near future AI capabilities

It is no longer if and when,

but how people are using AI


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, 5

100% Internet Users

89% Have Used AI

76% Use AI weekly

61% Own Smart Technology

6

However, AI

technologies

are at different

stages of

adoption Smart Technology

Ownership

32% claim to own a

smart speaker

54% claim to own a

smart TV

device

32% claim to own a

wearable

device

23% claim to own a

smart lighting

19% claim to own a

smart home

monitoring

21% claim to own a

smart thermostat


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=8817 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia

And, markets are embracing AI technologies at different rates

7

Emerging: Screen Reliant Establishing: Open to Voice Established: Voice-Ready

Lower usage and overall openness to AI technologies.

They have only recently had access to local voice-

enabled device (or are using English versions) due to

language complexities or market size. As a result,

screen-based smart technologies, such as Image

Search, are more popular.

More open to smart technologies and are excited about

their potential. They have less established voice eco-

systems and while Voice adoption and usage are

increasing rapidly, screens remain their preferred for

smart technologies now.

Voice is quickly becoming mainstream in these

countries, with usage of Voice assistants on par with

screen-based smart technologies. These markets were

among the first to receive voice-enabled devices and

have a more established voice eco-system as a result.


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, ChinaCategories are based on adoption + access to voice enabled devices

NL, SW, BE, GR. IR, ES, IT, AU, KSA, CN UK, US, DE

Voice Adoption

10 of the 13 markets monitored have local language options

8

Four languages

English (US, CA)

French (CA)

Spanish

NORTH

AMERICA

One language

SpanishLATIN

AMERICA

Two language

Spanish

Portuguese

EMEA

12 languages

English (UK)

German (DE, AT, CH)

French

Spanish

Italian

Russian

Danish

Norwegian

Dutch

Swedish

Turkish

Five languages

English (UK)

German

French

Spanish

Italian

ASIA

PACIFIC

Three languages

English (AU, IN)

Japanese

Seven languages

English (AU, SG)

Japanese

Korean

Hindi

Thai

Indonesian


Source: Retail Revolution, OMD, 2019, Base: https://developers.google.com/actions/localization/languages-locales, https://developer.amazon.com/docs/custom-skills/develop-skills-in-multiple-languages.html

https://developers.google.com/actions/localization/languages-locales

https://developer.amazon.com/docs/custom-skills/develop-skills-in-multiple-languages.html

First mover advantage with local language capabilities

determines Smart Speaker market dominance

9

Country Amazon Echo Google Home Apple HomePod

EM

EA

United Kingdom 2016 2017 Feb 2018

Germany 2016 2017 Jun 2018

Ireland Jan 2018 Jun 2018

Italy Oct 2018 Apr 2018

Spain Oct 2018 Jun 2018

Sweden Oct 2018

Netherlands Oct 2018

NA United States 2014 2016 Feb 2018

AP

AC

Australia Feb 2018 2017 Feb 2018

India 2017 Apr 2018


Source: https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=202207000, https://support.google.com/googlehome/answer/7550584?hl=en-GB, https://voicebot.ai/2018/11/23/the-lowest-black-friday-prices-weve-seen-on-smart-speakers-and-smart-displays/

https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=202207000

https://support.google.com/googlehome/answer/7550584?hl=en-GB

https://voicebot.ai/2018/11/23/the-lowest-black-friday-prices-weve-seen-on-smart-speakers-and-smart-displays/

Receiving it as a gift is one of the most common pathways to

Smart Speaker ownership

10

Reasons for Smart

Speaker Purchase

27%

It was a gift

27%

I wanted a music

speaker with voice

control

24%

I wanted more

everyday

convenience

24%

I like having the latest

technology

24%

I wanted something

new and was

intrigued to try voice

19%

After trying it out, I

wanted my own

18%

There was an offer

that I couldn’t refuse

18%

I wanted to automate

my house

17%

I wanted the social

benefit and

entertainment


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia


Voice delivers a

strong experience

– but it is far

from perfect

11

Even though Voice is the leading AI technology for some consumers, it is

still in its infancy. As a result of the screenless interaction, consumers are

being delivered simplified responses to their questions that fit in a

conversational delivery and narrowed list of options, which has implications

for brands as people move some of their brand interactions beyond a

screen. This presents an ideal opportunity for brands to take advantage of

the growing acceptance of Voice to both gain presence across the medium,

as well as to learn what does and doesn’t work.

Voice is mainly

used during

downtime or

while on-the-go.


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China

Source: Retail Revolution, OMD, 2019, Base: Voice Assistant Users n=4,693 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China

12

While cooking

Down/Leisure time

On-the-go

Entertaining

During mealtimes

Night-timeReady for day

When waking up

Working out

USA Ireland UK Sweden

BelgiumNetherlands Germany Spain

Italy Greece

At Work

61%59%

54%50%50%48%48%

41%38%

32%

64%62%

58%58%56%

53%51%

47%46%

42%

57%53%

47%44%44%

42%41%

35%29%

27%

59%55%

48%46%

41%38%37%36%36%36%

67%

59%

57%

54%

53%

50%

47%

47%

47%

44%

66%

63%

55%

53%

53%

50%

47%

46%

45%

44%

63%

63%

52%

50%

45%

45%

41%

40%

33%

29%

62%

62%

59%

56%

53%

52%

45%

45%

45%

37%

72%64%

59%51%

49%49%

45%41%40%

38%

84%

73%

67%

66%

65%

65%

65%

63%

62%

61%

Australia

52%43%42%

38%37%34%34%

29%27%

23%

57%voice

users

56%voice

users

53%voice

users

48%voice

users

41%voice

users

37%voice

users

45%voice

users

59%voice

users

66%voice

users

50%voice

users

49%voice

users

KSA China87%

75%

74%

71%

70%

68%

65%

62%

58%

58%

62%

59%

58%

56%

56%

49%

46%

43%

41%

39%

86%voice

users

86%voice

users

We need to shift our

focus from adoption

to frequency of usage

13

78% Open to using

a Voice Assistant

51%Have used Voice Assistant

11% Less than

once a month

8% Monthly

18% Weekly

18% Daily


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia,

There are three main types of Voice users being

established

14

27%use voice assistants more

than at first, finding new uses and

applications to try

Experimenters

26% use voice assistants

less than when they first got it

Lapsed/Lapsing

47% don’t feel they are using voice

assistants to their full potential but don’t

know how they would live without it

Comfort Zone

Us

ag

e

High usage due to initial

excitement of purchase

and novelty of usage

Honeymoon

Time


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=6,428, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China

Established

markets tend to

have more

experimental

users, while

emerging markets

are lapsing

15

28%

48%

USA

50%

Australia

46%

Sweden

43%

Netherlands

27%

48%

UK

31%

50%

Germany

51%

Ireland

45%

Belgium

34%

46%

Spain

28%

52%

Italy

41%

Greece

Experimenters Comfort Zone Lapsed/Lapsing

24%

25%

31%

25% 31%

32%

19%

36%

20%21%

27%

19%

25%

28%

23%

23%24%

43%

KSA

32%

25%

China

42%12%

46%


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=6428, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China

Generally, these users have purchased a Smart

Speaker for everyday convenience. They often

have young children in the household who promote

Voice experimentation for the entire family.

Tech-savvy, convenience focussed, more

trusting of technology

Voice has becomes a familiar part of their daily

lives, often centred around a few core skills and

basic functions. These users are more likely to

skew older and are less likely to have young

children in the household.

Less trust in technology and particular

concerns about new technology privacy

Comfort Zone

The decrease in their usage is due to an

absence of comfort and/or unsuccessful

experimentation with Voice. This group have

often become Smart Speaker owners through

gifting (36%).

Price-sensitive to smart technology and

generally less trusting of technologies

Lapsing / Lapsed

16

Experimenters


57% want easier ways

to discover new features


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia17

The biggest opportunity for Voice engagement applications now:

Recipe guidance

and ideas (76%)

Family

entertainment (69%)

Booking restaurant

reservations (69%)

Comparing energy

providers (67%)

Video content

discovery (67%)

Accessing medical

advice (65%)

(% Openness)

People are willing to share data for simple voice

transactions

18

Willing to pay for…Willing to share data for…

19% Receiving

coupons or offers

18% Comparing

energy providers

17% Booking a

restaurant

17% Step-by-step

recipe guidance

17% Ideas for

healthier recipes

17% Accessing

medical advice

12% Entertainment

for the family

12% Accessing

medical advice

11% Helping you

with a tax

submission

10% Pay bills,

such as electricity,

phone, bills, etc.


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia

33%of people claim to have tried voice shopping

19Retail Revolution | Openness to near future AI capabilities


Voice presents the greatest opportunity for purchasing in the

future compared to Image Search

20

Already

purchased:

Open to making

purchases:

14% 31% 30% 22%

39% 43% 39% 45%

33% have used voice to make a purchase

68% are open to using voice to make a purchase

Chatbot:Image

Search:

Voice

Assistant:

Smart

Speaker:



44% want easier ways

to shop using their voice


Source: Retail Revolution, OMD, 2019, Base: Voice assistant users n=4,693, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia21

The biggest opportunity for Voice purchases are:

Ordering

a taxi (48%)

Buying video-on-

demand content (47%)

Ordering food

delivery (45%)

Booking cinema

tickets (45%)

Buying set meal

ingredients (43%)

Event

tickets (43%)

(% Openness)


Image Search is

an emerging

behavior to

take note of

22

Text still is the main way people are searching. However, with recent

advancements in image recognition, we are starting to see the adoption of

image search. It works best when it answers questions that are hard to put

into words. For example, “what is this?” or “what goes with this?”. Without

an image, these questions are complex to describe and many times not

specific enough to reliably return consistent results. Brands should consider

when people will use image search and enhance functionality around these

moments, understanding the technology’s capabilities.

Image Search presents an

opportunity, with high

existing use

23

87% Open to using

Image Search

75% Have used Image Search

13% Less than once

a month

13% Monthly

23% Weekly

27% Daily



Inspiration and

information

are the main

uses of Image

Search


Source: Retail Revolution, OMD, 2019, Base: Image search users n=9016, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China24

Get information

Fun and Entertainment

Identify objects

Click-to-purchase on Social Media

Ease of purchase

Augmented Reality

USA Ireland UK Sweden

BelgiumNetherlands Germany Spain

Italy Greece KSA China

Australia

40%

40%

34%

32%

26%

9%

39%

38%

36%

31%

23%

8%

36%38%36

%25%23

%10%

48%

33%

34%

26%

22%

11%

43%

43%

37%

29%

14%

9%

44%

38%

35%

28%

10%

6%

46%

41%

37%

25%

9%

11%

39%

44%

48%

36%

33%

15%

39%

48%

52%

40%

26%

13%

52%

49%

57%

49%

34%

13%

47%

57%

55%

50%

44%

32%

36%

52%

50%

50%

57%

31%

43%

39%

32%

30%

19%

7%

51% want results that are more

inspirational and entertaining

25

The biggest opportunity for Image Search engagement applications now:

Instructional Information

– Plants/ Pets (73%)

Travel

Suggestions (71%)

Recycling

information (70%)

Decorating

inspiration (67%)

Recipe

suggestions (67%)

Purchase

comparison (66%)

(% Openness)


Source: Retail Revolution, OMD, 2019, Base: Image search users n=7337, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia

28%of people claim to have tried image shopping



58% want more accurate Image

Search results

27

The biggest opportunity for Image Search purchases now:

Fashion,

Clothing (40%)

Buying set meal

ingredients (40%)

Ordering food

delivery (38%)

Buying video-

on-demand content (38%)

Groceries

(38%)

Booking travel

(37%)

(% Openness)


Source: Retail Revolution, OMD, 2019, Base: Image search users n=7337, Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia


Consumers are increasingly worried about how much data is

being collected and how it is being stored, anonymized and

used. And, they believe it should be brands who take

responsibility for addressing their new technology privacy

and security concerns. As a result, people’s trust in AI is

fragile and must be carefully cultivated by brands.

However, ongoing positive experiences are overcoming

people’s fears around new technologies. Marketers need to

sense check that they are creating experiences that people,

and the technology, are ready for now.

Brands need to

build trust step

by step

28

40% of people

trust smart

technologies

in their lives

29

67% Expect brands to take responsibility

for technology advances that may

compromise privacy

65% Worry about the security and

privacy of new technologies

65% Are concerned about how much

data is being collected

34% Don't mind sharing data because

they feel like they have nothing to hide

33% Are happy to share data in exchange

for personalized services and offers on

regular purchases

28% Believe the data collected is only

used to improve AI products and

voice-control functionality

And, few are ready to share their data with

brands if how it is being used is unclear

Consumers hold brands responsible for

addressing their privacy and security

concerns around new technology



But, people’s AI expectations are in tension with their current

levels of trust

30

67%

64%

61% 61% 61% 60% 60%59%

54%

50%

34%

45% 45%

63%

78%

41%

52%

46%

52%

32%

55%

50%

34%

36%

45% 46%

62%

54%52%

48% 49%51%

42%

53% 53%

39%

41% 42%

35%

40%43%

57%

40%

32%

41%

30%

33%32%

30%

26% 27%27%

Spain KSA China USA Italy Ireland Germany Australia UnitedKingdom

Netherlands Sweden Belgium Greece

I think smart technologies are always listening I think smart technologies are too invasive

I worry about technology misinterpreting me and giving me wrong or inaccurate results I have started to limit the use of certain technologies because of recent news stories


Source: Retail Revolution, OMD, 2019, Base: Online Respondents n=9746 Markets: UK, Netherlands, Germany, Belgium, Spain, Italy, Sweden, Ireland, Greece, USA, Australia, KSA, China,

People are more open to AI and data sharing

for simple transactions, which are natural

progressions of their current behaviours



24%Sharing your taste

preferences with a

beverages brand to

receive inspiration

21%Allowing a TV streaming brand to

have access to all your other TV

subscriptions and viewing habits

to manage and optimize your

subscriptions, saving you money

and enhancing recommendations

21%Sharing your past grocery

purchases with a food brand to

receive automated shopping

orders for you to approve

12%Providing a car

manufacturer with

access to your

calendar for

customized

content while

driving (i.e. local

podcasts, etc.)

11%Providing

access to your

smartphone

photos to a

fashion or

beauty retailer

to get

customized

promotions and

suggestions

11%Allowing a

telecoms brand

to analyze your

voice to

understand

your emotional

state to provide

you with better

customer

service

Openness

Thinking about future technology, people want easier ways to

discover new features and uses

32

72%71%

68%

65%

68%

60%

56% 56% 55%

50% 49% 49%47%

60% 59%

69%

49%

63%

42% 42% 41% 41%

36%

29%32% 32%

65% 64%

68%

54%

62%

44%42%

46%

42%

38%

32%

35% 36%

Spain Italy China Greece KSA USA Australia Ireland UnitedKingdom

Germany Sweden Belgium Netherlands

Easier ways to discover new features and uses

Better facial/ voice recognition in order to personalise suggestions and actions

More automation options (i.e. moving from lights to appliances, answering phone calls, etc.)




There is a role for

brands who commit to

transparency when

using data to enhance

favorability and uptake

33

Brands have an opportunity to build awareness and encourage usage

through their products and channels, providing reasons for consumers

to establish regular usage. However, these initial experiences should

be part of a larger vision to explore new models to unlock data and

development opportunities. Brands need to map out how they can

create experiences that fit within what people are comfortable with

right now to build acceptance and give people a reason to engage.

Documents

OPENNESS TO NEAR FUTURE AI CAPABILITIES… · Retail Revolution | Openness to near future AI capabilities 3 PARTNER COLLABORATION AI PERCEPTONS & ADOPTION HOW PEOPLE INTERACT WITH