Consumer Behavior in the AI Revolution: Insights from Shahar Boyayan
In today's rapidly evolving digital landscape, understanding consumer behavior is crucial for business success. As artificial intelligence becomes increasingly integrated into our daily lives, consumer expectations and behaviors are shifting dramatically.
Recently, on the "Chasing the Insights" podcast, host Vince Warnock interviewed Shahar Boyayan, an expert in the intersection of consumer behavior and artificial intelligence. Shahar, the author of the report "AI-Driven Consumer Trends and Business Applications," shared valuable insights into how AI is reshaping consumer expectations and what businesses need to know to stay ahead.
The Evolution of Consumer Behavior
Shahar defines consumer behavior not as how consumers "behave" but rather how they react to businesses—whether companies can capture attention, become irresistible, and gain traction. While AI might seem like old news to tech enthusiasts, for the average consumer, AI integration into daily life is just beginning.
"AI is actually going to become an extension of ourselves," Shahar explains. "It's going to be deeply in our lives. And this causes change in what we expect from business and how we deal with business as consumers."
She emphasizes that this shift represents one of the most significant behavioral changes we'll witness in our lifetime. Businesses that aren't tuned into this transformation risk being left behind.
The AI-Driven Home: Our New Safe Space
One of the most notable changes in consumer behavior stems from our increased time at home, a trend that began during the pandemic but has evolved beyond that initial shift.
"Now we not only are comfortable being inside the home, we are making the home be exactly what we want," Shahar notes. With AI-powered devices, consumers can customize their living spaces to suit their preferences perfectly.
This trend has created a "safe space" mentality. From smart watches tracking our health to lights that respond to voice commands, AI-based technology—often not even recognized as AI by users—is transforming our homes into personalized havens.
The Isolation Paradox: Entitlement and Loneliness
This retreat into AI-enhanced private spaces has created an interesting paradox. On one hand, consumers are becoming more entitled because AI tends to deliver exactly what they want to hear. On the other hand, people feel increasingly isolated.
"One in five Americans feel extremely lonely. One in three Americans say they have a real friend," Shahar reveals. This isolation creates two critical demands from consumers when they do engage with businesses:
Visibility and acknowledgment: Consumers want to feel seen and valued
Hyper-personalization: They expect experiences tailored specifically to their needs
Businesses must recognize these twin desires and implement strategies to address them—from using customers' names in communications to leveraging AI for personalized recommendations.
The Unrecognized Prevalence of AI
Many consumers use AI daily without realizing it. From Amazon's recommendation algorithms to Netflix's content suggestions, AI is already embedded in countless services.
Shahar observes, "Many times we are not even aware that it's AI-based. We just think it's a cool gadget." This unconscious adoption is happening across all generations, regardless of age or tech-savviness.
The Critical Thinking Crisis
While AI offers tremendous benefits, Shahar warns about a concerning trend: the outsourcing of decision-making to machines. She shares an anecdote about her daughter-in-law who submitted an AI-generated resume without reading it, only to discover during an interview that it claimed skills she didn't possess.
"When I allow the machine to start making decisions for me all the time, I run the danger of getting into very complicated situations," Shahar cautions.
This reduction in critical thinking extends to social interactions as well. Social media already enables us to filter out differing opinions, and AI assistants typically aim to please. Together, these technologies can limit our exposure to different perspectives, making it harder to have difficult but necessary conversations.
Social Media and the Rise of AI Companions
The announcement that Meta plans to introduce AI friends on Facebook and Instagram raises further concerns about authentic human connection. "That's the end of social," Shahar notes. "Because if all my relationships are not going to be real, what's the point of being there?"
There are already documented cases of unhealthy emotional attachments to AI companions. While these artificial relationships may feel validating in the moment, they lack the growth opportunities that come from navigating real human relationships with all their complexities.
What Consumers Really Want: Authenticity
Despite the technological sophistication, consumers are ultimately seeking authenticity from businesses. "We are looking for the raw, for what's real," Shahar emphasizes. "I don't want anybody being perfect."
This desire for authenticity presents a significant opportunity for businesses willing to be transparent and genuine rather than overly polished. Consumers appreciate imperfections that reflect humanity.
The Digital Twin Phenomenon
In Shahar's research, she identified "digital doping anger" as a significant trend—the creation of digital twins or versions of ourselves. From AI email responders to virtual avatars, we're increasingly able to duplicate our presence across platforms.
"We're putting ourselves and duplicating us, which will make us control time a lot better," she explains. This efficiency may create more free time, potentially shifting consumer values and priorities.
The Pendulum Swing: Extreme Experiences vs. Digital Detox
With AI handling routine tasks, Shahar predicts a bifurcation in consumer desires:
Seeking extreme experiences: As AI frees up time, consumers may pursue novel, intense experiences
Craving disconnection: Simultaneously, the information overload will drive demand for digital detox services
This duality creates business opportunities on both ends of the spectrum—from adventure tourism to wellness retreats focused on disconnecting from technology.
The Human Edge: Creativity and Ethics
Despite AI's capabilities, Shahar emphasizes that human creativity remains irreplaceable. "AI still is not very creative. And we, as human beings, are very, very creative."
Businesses should use AI to automate routine processes but maintain human oversight for strategy, creativity, and ethical considerations. "You're going to be the ethics director as well of the business," she advises, noting that AI systems reflect the biases of their programmers.
Embracing AI While Maintaining Balance
The integration of AI into business operations offers tremendous opportunities for efficiency and scaling. Tools like AI translation services can instantly create content in multiple languages, breaking down communication barriers.
However, Shahar advocates for a balanced approach—using AI to handle mundane tasks while preserving the human elements that make businesses unique and authentic.
Conclusion
As AI becomes an extension of ourselves, consumer behavior will continue to evolve rapidly. Businesses that understand these shifts—the desire for visibility, personalization, and authenticity—will be positioned to thrive.
The key is striking the right balance: leveraging AI's capabilities while maintaining the human creativity, connection, and ethical oversight that consumers ultimately crave. By doing so, businesses can meet changing consumer expectations while creating meaningful, authentic relationships with their customers.
Ready to transform your business with AI-powered solutions that maintain the human touch your customers crave? PropTalkie offers cutting-edge tools that help you automate routine tasks while enhancing personalization and authenticity in your client communications. Don't get left behind in the AI revolution—contact PropTalkie today to discover how our solutions can help you meet evolving consumer expectations.
This article was based on an interview with Shahar Boyayan on Chasing the Insights, a podcast dedicated to exploring inspiring stories and insights from industry leaders.
