The digital economy is evolving faster than ever, fuelled by the rapid adoption of artificial intelligence (AI). From hyper-personalised shopping experiences to automated fraud detection, AI is transforming ecommerce. However, this accelerating innovation also introduces new risks, particularly the growing threat of AI-generated deepfakes, says Rory O’Neill, CMO at Checkout.com.

Checkout.com’s latest research highlights a key paradox. Consumers, particularly those under 45 years old, are enthusiastic about the convenience and utility of AI, yet all generations are fearful of its misuse in the online marketplace. Closing this emerging “trust gap” will be essential for the continued growth of digital commerce.

AI and the appeal of convenience

Consumers remain eager to harness AI to enhance their online shopping experiences. In the UK, more than one in four shoppers (26%) already use visual AI search for product discovery, and 22% rely on AI-driven voice search. AI tools strongly influence consumer choice, particularly in the retail sector, where 50%of consumers say AI results inform their purchasing decisions. AI also affects decisions in online travel (22%), insurance (22%), and food delivery (16%).

This growing adoption of AI-driven shopping tools is part of a broader shift towards Agentic Commerce, where pre-programmed agents, powered by generative AI, can search, scroll and even purchase on behalf of consumers. These agents operate independently but in line with the consumer’s preferences and intent, promising convenience but also introducing new trust and security questions.

The appetite for AI-driven convenience continues to grow with a quarter (26%) of consumers expressing interest in AI-generated price monitoring tools. Despite this, trust in AI for certain applications remains limited. Nearly half of consumers (46%) are as yet unwilling to trust personalised product recommendations generated by AI.

These findings suggest that consumers are more willing to adopt AI when the benefits are clear, when they retain control over their data and when the technology is presented in familiar contexts. For retailers, the lesson is that transparency and user control will be key to driving broader AI adoption.

Rising concerns about deepfakes

While the potential benefits of AI are substantial, consumer fears about AI-generated fraud are escalating. In the UK, 56%of adults are concerned about falling victim to scams involving deepfakes, rising to 64% among Baby Boomers.

More than half of UK adults (54%) are worried about their personal images being stolen and used in deepfakes. These fears are rooted in lived experience. Forty percent of consumers report having been targeted by scams or theft involving their bank accounts, with nearly one-third falling victim to phishing attacks.

AI is making phishing and social engineering tactics increasingly difficult to detect. It is no surprise, then, that 61%of UK shoppers report heightened concern about their overall privacy when shopping online.

Merchants respond to a new era of fraud

Retailers are also alert to the growing threat of AI-enabled fraud. They and their customers now face a wave of attacks that leverage deepfakes, face reenactments, synthetic identities and real-time phishing.

Julie Fergerson, CEO of the Merchant Risk Council, warns that the risk is increasing. “Fraud will escalate dramatically over the next three years,” she states. She likens current efforts to “patching cracks in a dam,” suggesting that without stronger defences, systems could soon be overwhelmed.

For retailers, building consumer trust in this environment requires a proactive approach. It will be critical to strike the right balance between providing frictionless customer experiences and deploying sophisticated fraud prevention measures.

AI as part of the solution

While AI presents new challenges, it is also a powerful tool for enhancing security. Advanced AI systems play a growing role in detecting payment fraud, identifying patterns of suspicious activity and reducing false declines that may block legitimate transactions. We already use AI models to help merchants recover billions in revenue by intelligently optimising payment flows, reducing false declines and blocking fraud in real time.

As we move further into the era of Agentic Commerce, the traditional relationship between consumers and merchants is reshaped. AI agents act on behalf of users, meaning retailers must now earn trust not only from individuals but also from the systems acting for them. This expands the trust gap, especially when shoppers feel decisions are being made without transparency or oversight.

The future of ecommerce depends on successfully navigating this AI paradox. To build a resilient and trusted digital economy, retailers must harness the power of AI to enhance customer experiences while deploying robust safeguards to mitigate new risks. Those who achieve this balance will be well-positioned to thrive in the next chapter of digital commerce.