A new report highlights how artificial intelligence is transforming retail experiences in Hong Kong, with consumers increasingly turning to AI tools for discovery while merchants grapple with building lasting confidence during the final stages of a purchase. The latest findings from the Adyen (AMS: ADYEN) APAC Retail Index for Hong Kong show strong enthusiasm for AI among shoppers, but persistent concerns around automated transactions and data protection.
Commissioned by the global payments technology provider Adyen, the study surveyed 1,026 local consumers aged 18 and above, along with 324 senior executives from larger retail businesses generating at least HK$150 million annually.
According to the data, 74% of Hong Kong consumers have already experimented with AI assistants to improve their shopping journeys.
Among those users, a significant 88% appreciate how these tools help filter through overwhelming online options, while 73% note quicker access to fresh ideas and inspiration.
Additionally, 71% express interest in leveraging AI to uncover distinctive brands and memorable experiences.
Younger demographics are driving much of this momentum. Roughly one-quarter (26%) of Gen Z shoppers rely on AI assistants daily, far outpacing the 17% of Gen X and a mere 2% of Baby Boomers who do the same.
This generational divide underscores a broader cultural shift toward technology-enhanced retail interactions across the region.
Despite widespread adoption for exploration, hesitation remains when it comes to letting AI handle the entire transaction.
Nearly half (45%) of respondents feel uneasy about allowing an AI assistant to finalize a buy, even after personally reviewing the items and costs.
Some prefer to limit AI strictly to suggestions (14%), while others demand extra verification steps before proceeding (another 14%).
This reluctance points to deeper issues as the industry edges toward “agentic commerce”—a future where intelligent agents autonomously research, select, and complete purchases for users.
An impressive 94% of Hong Kong enterprise retailers report familiarity with the concept, and over half (52%) intend to incorporate AI or agentic features into their revenue strategies for the coming year.
However, retailers are realistic about the obstacles.
Leading worries include eroding direct connections with customers or control over brand image (43%), risks to data privacy and protection (38%), and challenges in merging new AI systems with legacy infrastructure (35%).
Varying technical standards across platforms further complicate seamless integration, turning each new tool into a potentially expensive undertaking.
Payment reliability emerges as a critical factor in maintaining loyalty.
Two-thirds (66%) of consumers say mistakes during checkout harm their view of a brand, and 26% would not only walk away from the current sale but also steer clear of the retailer in the future.
Shoppers in Hong Kong value reassurance more than speed: 41% feel greater assurance with two-factor authentication in place, and only 9% would trade security for quicker processes.
Kai Tang, Adyen’s Head of Hong Kong, emphasized that payments now form an integral part of the overall brand perception.
“When checkout falters, consumer trust can quickly erode,” he noted.
As automation advances, retailers must ensure their backend operations support innovation without sacrificing reliability at every step.
The report paints a clear picture for Hong Kong’s evolving retail landscape: balancing pioneering AI capabilities with dependable, secure foundations is essential.
Consumers seek more personalized, effortless journeys across channels but will not tolerate compromises on safety or consistency.
Retailers that dismantle barriers between digital and physical stores, invest in strong data safeguards, and streamline checkout processes stand to build stronger, longer-term relationships in this dynamic environment. As AI continues to reshape discovery and decision-making, the ultimate differentiator may well lie in delivering frictionless, trustworthy transactions that honor consumer expectations at every touchpoint.