Retail Technology Innovation Hub Mentions First Insight | First Insight Releases Research On How Consumers Perceive Rising Use Of Digital Twins In Retail
48% of US consumers have never heard of a digital twin before, according to First Insight research involving 1,303 people.
Once learning that this is a digital replica of customers built from past purchases, browsing behaviour and inferred preferences, 69% say they would trust a brand less if it relied on digital twins instead of real customer feedback.
Many retailers are using digital twins as a faster, more scalable way to deliver personalised experiences to their customers. But, using these virtual representations of customers to guide decisions and make predictions around everything from products and pricing to inventory and marketing - without ever involving the real customer - is not only largely inaccurate, but can cause brands to lose significant customer trust.
77% of consumers say they value authentic, direct communication from brands more than efficiency or automation in how they gather feedback. The study also underscores the commercial and reputational risks of replacing real customer input with simulated feedback. 69% describe themselves as “extremely” or “very” protective of their personal data.
Once shoppers learn that brands may model or monetise them without their consent, 58% say they would become detractors, either less likely to recommend a brand or actively warn others against purchasing from it.
Plus, while Gen Z shoppers may not drive the majority of revenue today, they’re the most likely to take action to voice their frustration: 56% say they would contact the brands directly, while 54% would share articles exposing the practice, and 53% would post about it on social media.
Among the findings:
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Consumers want brands to ask them, not simulate them. 55% of shoppers prefer brands to “directly ask me” about their preferences compared to just 8% who prefer AI simulation.
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Trust collapses when brands skip talking to real customers. 42% say they would significantly lose trust or stop purchasing entirely if a favourite brand used synthetic personas instead of real feedback.
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The highest-spending generations reject digital twins most strongly. Baby Boomers (58%) and Gen X (42%) are the most likely to respond to companies using digital twins by reducing their trust or no longer purchasing from them, posing major risks in categories like apparel, footwear, home and CPG.
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Consent is non-negotiable, even among tech comfortable consumers. While 24% of Gen Z initially said they were comfortable with digital twins, once the implications were explained, 59% cited lack of consent and 49% cited loss of authentic human connection as concerns.
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Gen Z is the most reactive - and the most willing to walk away. Once Gen Z consumers learn without their consent, 54% say they would switch brands entirely, while 52% would encourage boycotts.
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Today’s consumers are looking for real human interactions from the brands they use. 91% of consumers say that authentic human reaction is an important part of their relationship with a brand, with 40% saying it’s “extremely important.”
“When retailers cut customers out and rely on synthetic replicas instead, trust collapses. You cannot claim to know your customer while replacing them with a model of themselves,” says Greg Petro, CEO at First Insight.
“Consumers aren’t anti technology, or anti AI, they’re anti being modelled, simulated and monetised without their consent. The path forward is clear: engage real consumers in real-time, reward their input and build AI that strengthens - not replaces - authentic human feedback.”
Read on Retail Technology Innovation Hub.
