EY and NielsenIQ reports show AI reshaping global consumer retail

A new EY "State of Consumer Products" survey of more than 850 senior executives finds that brands are no longer competing only for visibility but also to be selected by AI‑powered recommendation systems. While three‑quarters of respondents see rapid transformation as mandatory, only 21% feel they have the necessary AI competence and 47% view algorithmic product recommendations as a critical advantage for the next five years. Most companies (61%) still prioritize human judgment over fully automated decisions, and few have integrated sales, marketing and e‑commerce functions or a unified data infrastructure.

A parallel NielsenIQ "Commerce Revolution" report describes a shift toward an integrated mega‑ecosystem where data, media, fintech and logistics converge. Growth is strongest in Turkey, the United Arab Emirates, Saudi Arabia and other emerging markets, with e‑commerce expanding dramatically. Consumers increasingly discover products through social media and algorithmic feeds, prompting a move toward "discovery commerce" and autonomous AI‑driven shopping. Brands are urged to operate like technology, media and data companies to stay competitive in this rapidly evolving landscape.