AI shopping adoption in Canada grows 44% in one year

Adyen's latest annual Retail Report finds that 36% of Canadian consumers are now using artificial intelligence (AI) to assist with shopping, representing a 44% increase on last year's numbers.

The report draws on a survey of 41,000 consumers in 28 countries, with findings showing that more than one in ten Canadians began using AI for shopping for the first time within the last year. Over half (52%) of Canadians indicated they are open to making purchases using AI in the future.

Among Canadian consumers, 55% who use AI for shopping said the technology inspires them when selecting items such as outfits or meals. Additionally, 5% reported obtaining their best ideas for new products with AI assistance, and 54% expressed a desire to discover unique brands through AI. The data points towards an opportunity for brands to leverage partnerships and cross-selling via AI-powered recommendations.

The study reports that Gen Z is the demographic most engaged with AI in shopping, with 56% of those aged 16 to 27 saying they currently use the technology. However, the most notable increases in AI usage over the last 12 months were seen among Millennials (28 to 43 years old) and Generation X (44 to 59 years old), at 50% and 48% respectively. By contrast, only 19% of people aged 60 and over reported using AI for shopping purposes.

Roelant Prins, Chief Commercial Officer at Adyen, commented, "Consumers are embracing AI at an unprecedented rate as they discover how this technology is transforming the shopping experience. We're likely entering an era where AI can act as our own personal stylist, curating outfits tailored to individual tastes and preferences. The demographic splits from our research showed some interesting results, especially seeing how older generations have been integrating AI into their shopping habits."

The study also asked 14,003 retail merchants about their strategies for driving revenue growth in 2025. Among Canadian retailers, 28% indicated they plan to invest in AI for sales and marketing activities in the coming year, while 26% intend to deploy AI in support of product innovation.

Holly Worst, Vice President of Retail at Adyen, said, "AI is no longer viewed as a future bet - it's a current imperative for retailers and consumers alike. Earlier this year we launched Adyen Uplift, our AI-powered payment optimization suite that helps businesses increase payment conversion, simplify fraud management, and reduce the cost of payments.

"By embracing AI in this way, we can help retailers offer an unparalleled customer experience as 'good' shoppers are able to speed through checkout whilst we can intercept fraudulent transactions. It is clear to see why AI has taken the top spot as the most-cited growth enabler for 2025."

Apart from investments in AI, the report highlights the importance of enabling unified commerce experiences. Only 39% of Canadian retailers currently allow customers to shop and complete transactions seamlessly across both online and offline platforms, while 17% plan to introduce such capabilities over the next year. An additional 14% of business leaders are looking to enhance customer experience with exclusive in-store offerings.

The researchers found that 38% of Canadian shoppers now expect businesses to offer multi-channel shopping experiences, whether through social media, apps, or online stores. Use of social media to discover and buy products was cited by 30% of consumers.

However, preference for physical retail remains high. The report notes that 44% of Canadian consumers prefer shopping in-person, compared with 19% who favour online purchases. The ability to see or handle products before purchasing (47%), to try items on (43%) and the advantage of taking products home immediately (38%) were given as the main reasons for choosing to shop in-store.

The research was conducted by Censuswide and adhered to MRS and ESOMAR codes of conduct. Data from the survey provides insight into changing consumer behaviours and the strategies retailers are using to adapt in a rapidly evolving marketplace.