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EXECUTIVE SUMMARY
- What you need to know
- The market
- The consumer
- AI amplifies the sense of control: reducing friction and normalising certainty
- Reshaping the decision journey: upgrading consumer search efficiency
- Enthusiasm for new tech and concerns co‑exist: the more consumers rely on AI, the more they worry
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THE MARKET
- Market factors
- Three major competitive battlegrounds in the AI industry
- 1. Understanding: multimodality has become a must‑have
- 2. Memory: the race for context window completeness
- 3. Execution: AI is redefining the smallest unit of productivity and lowering the barrier to getting things done
- Market trends
- The what‑you‑think‑is‑what‑you‑get experience goes mainstream
- Software layer: AI entry points take centre stage – driving a broader battle for platform ecosystems
- Hardware layer: on‑device AI proliferates in the search for more natural forms of interaction beyond the smartphone
- AI applications are becoming part of daily life and strengthening consumers’ sense of control
- Graph 1: “It’s important to me to have control over my life” – agree, 2023-25
- Market highlights
- Wearables: devices that perceive the environment and process information
- Food: smart small kitchen appliances with voice interaction
- Living: intelligent home systems that understand everyday life
- Mobility: intelligent transport devices that adapt to complex environments
- Key takeaway
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CONSUMER INSIGHTS
- Consumer overview
- Overall AI adoption growth is slowing, but uptake among Post-1990s consumers remains strong
- Graph 2: knowledge and usage of AI, 2023-25
- Graph 3: knowledge and usage of AI – use AI tools and apply them in work or daily life, by generation, 2024-26
- Conversational AI has become the baseline, while AI‑enhanced search and voice features enjoy high user acceptance
- Graph 4: AI usage, 2026
- Graph 5: AI usage, 2026
- To make consumers willing to pay for AI, it needs to be more invisible and more proactive, not smarter
- Overall consumer perceptions of AI are positive, but a gender gap persists in attitudes towards AI
- Graph 6: attitudes towards AI – perceived real‑world progress, by gender, 2026
- Graph 7: attitudes towards AI – perceived novelty, by gender, 2026
- Men tend to understand AI through a technical lens, while women experience it primarily as everyday assistance
- Search: how AI has changed consumer search behaviour
- Conversational AI has become a mainstream entry point for search, with multiple search channels operating in parallel
- Graph 8: information search entry points, 2026
- AI is upgrading search behaviour, not replacing search channels
- Graph 9: information search entry points, by usage rate difference (AI users vs non‑users), 2026
- How search is evolving: setting expectations, building understanding and validating outcomes
- AI can answer questions, but struggles to deliver the ‘right feel’…
- …which comes from emotional resonance that feels genuinely human
- Trust: consumers’ level of trust in AI‑generated information
- Information search, health and travel are the areas where consumers trust AI the most
- Graph 10: level of trust in AI, 2026
- Information search, health and travel are the areas where consumers trust AI the most
- Everyday frequency of AI use influences consumer trust in AI
- Graph 11: AI usage and awareness, by generation and monthly household income, 2026
- The more consumers use AI, the more they trust it, driven by frequent interaction that naturally leads to deeper collaboration
- Graph 12: trust score, by level of AI awareness and usage, 2026
- Heavy users: core concerns converge, expectations of capability rise and greater caution on privacy and data security
- Graph 13: concerns about AI, by level of AI usage, 2026
- Graph 14: attitudes towards AI – safety concerns, by level of AI usage, 2026
- Light users express trust concerns in shopping, search and travel scenarios
- Graph 15: trust in AI – search, travel and price comparison scenarios, by level of AI usage, 2026
- Light users: feeling algorithmically targeted, with early monetisation triggering defensive responses
- Graph 16: attitudes towards AI – practical usefulness, by level of AI usage, 2026
- Paid use: scenarios where consumers are willing to pay a premium for AI
- From health to productivity: re‑imagining every task through AI
- Graph 17: willingness to pay for AI, 2026
- From trust to confidence: AI users are more willing to pay a premium for the AI experience
- Graph 18: willingness to pay for AI, by AI usage, 2026
- Efficiency and emotional resonance: two routes to monetisation in work and study scenarios
- AI hardware has entered the home, with parenting needs driving the segmentation of AI toys
- AI collaboration habits are leading younger generations to spend on creativity
- When use of health tools becomes habitual, willingness to pay follows naturally
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IMPLICATIONS FOR BRANDS
- How brands can move AI from being a tool to a partner as relationships with AI deepen and become longer‑term
- Brand embodiment: making AI tangible and bringing brand companionship into everyday life
- Human‑centred storytelling: building brand affinity through shared cultural symbols
- Social outreach and education: addressing FOMO and building long‑term brand trust
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WHAT WE THINK
- What we think
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APPENDIX – METHODOLOGY, ABBREVIATIONS AND OTHER DATA
- Methodology
- Methodology: repertoire analysis
- Qualitative research participants
- Abbreviations
- China: AI usage and awareness, interpreted by usage behaviour, 2026
- China: information search models, consumers who have never used AI, 2026
- Graph 19: information search models, consumers who have never used AI, 2026
- China: information search models, consumers who have used AI, 2026
- Graph 20: information search models, consumers who have used AI, 2026
In the AI era, a new way of life is taking shape. Outcomes are becoming more controllable, decision journeys are being further reshaped, and consumers continue to oscillate between embracing technological innovations and reflecting on underlying concerns, creating a unique tension.
Ruyu Dai, Associate Research Analyst, China
Market Definitions
Artificial intelligence (AI) is a technology that enables computers and machines to replicate human cognitive capabilities, including learning, understanding, reasoning, decision‑making and creativity.
In this Report, AI refers not only to the underlying technology itself, but also to the specific applications developed on the basis of these technologies. AI‑based applications are now widely embedded in consumers’ everyday lives, spanning search, office productivity, social media and e‑commerce, navigation and a wide range of lifestyle and service scenarios. These applications may exist as standalone products or be embedded as features within existing services. Common formats include intelligent search, voice assistants, automated content summarisation, personalised recommendations, speech‑to‑text, and image‑ and text‑based understanding and Q&A.
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