AI-based shopping has its own dangers

The emergence of AI shopping not only gives consumers access to personalized advice and hassle-free purchasing, but also comes with an increased risk of digital fraud.

This Black Friday, for the first time, both consumers and retailers are being warned about the dangers of so-called “genetic shopping,” as consumers turn to big language models to research products, compare deals, receive personalized recommendations, and even make purchases without much human involvement. These technological advances carry their own risks.

“It definitely makes my life easier… but at the same time, it also makes the scammers’ lives substantially easier,” said Michael Reitblat, CEO of Forter, an identity intelligence company that works on fraud prevention.

According to Reitblat, in the last six months there has been a 200% increase in agent purchases by consumers. This has been accompanied by a nearly tenfold increase in the number of scammers using AI. “Think of it as sending thousands of robots to different stores to pose as good consumers,” Reitblat told CNBC’s “Squawk Box Europe.”

While the knee-jerk reaction of some retailers has been to simply ban AI shopping, that could be a flawed strategy as more and more consumers are using AI to shop and that is generating good quality traffic, Reitblat said.

A report from McKinsey & Company and The Business of Fashion found that among fashion executives, artificial intelligence and digital tools were seen as the biggest opportunity for the industry in 2026. To ensure products are visible and favored by AI models, brands must rethink marketing and e-commerce strategies, the report notes, adding that semantically rich data and API-accessible content will be critical to success.

“It is necessary to use AI to fight AI,” Reitblat said. “You need to make sure you’re leveraging better data than scammers may have, and you need to think properly: How do you authenticate consumers?”

Value-conscious consumers are another factor retailers have to contend with this year, as rising trade tensions and concerns about a slowing economy impact consumer spending habits.

Consumer confidence has been shaky heading into the shopping season. In Europe, economic sentiment has remained stubbornly below its long-term average since mid-2022, according to data from the European Commission. Meanwhile, in the United States, consumer confidence hit its lowest point since April in November as concerns about job security rise.

Some experts have suggested a divide between wealthy consumers who are doing well and others who are cutting back on spending amid pressure from higher prices, in what has been called the “K-shaped economy.”

“Consumer confidence has been shaky and therefore customers feeling like they are getting genuine value will be important this year,” he said. CurryDean Kramer, director of services.

“We know that research is an important part of how consumers approach Black Friday, ensuring they get absolute value.”