What if companies could test a product on thousands of virtual shoppers before it ever reached a real customer?
South Korean retailers are increasingly turning to AI-generated consumers, also known as synthetic consumers, to predict buying behaviour, test new products and improve shopping experiences. Instead of relying entirely on traditional surveys and focus groups, businesses are creating virtual shoppers that simulate how people might respond to products, prices, advertisements and store layouts.
These virtual consumers are built using large language models and consumer data. They can simulate purchasing decisions, explore online shopping journeys and identify moments when customers might lose interest or abandon a purchase.
Several major Korean companies are experimenting with the technology:
The technology aims to help retailers understand more than basic demographics. Instead of simply creating a profile based on age or gender, AI twins can incorporate purchasing habits, preferences and consumption patterns.
Technology provider Intellicia says its synthetic consumers are developed using real interviews, surveys, commerce reviews and social media data. The company reports a 91.2% correlation with a 500-person real consumer survey in its benchmark testing.
However, synthetic shoppers are simulations, not actual customers. Their predictions still need to be tested against real-world behaviour.
Retail is a fast-moving industry where trends can change within weeks. AI-powered simulations could help businesses test ideas more quickly, reduce research costs and identify weaknesses before spending money on production, advertising or store changes.
The development also raises an important question: as companies increasingly rely on virtual versions of consumers, how closely can AI really understand human preferences?
🎙️ In this episode: We explore how South Korea’s retail industry is experimenting with AI shoppers, why major companies are investing in synthetic consumers, and what this could mean for the future of shopping.
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