As 2025 unfolds, consumers have money on their minds and it will impact how they shop, according to the latest consumer research from First Insight.

The survey also revealed the growing importance of AI to create more tailored and relevant shopping experiences to lure in shoppers. First Insight released the survey results ahead of the National Retail Federation’s “Big Show” in New York City, where the company will be showcasing its retail solutions.

In a survey of more than 1,100 U.S. consumers, researchers at First Insight found that 57 percent of those polled said they are worried about a recession, with Generation X leading the way at 65 percent. As a result, 31 percent of respondents said they plan to prioritize essentials such as groceries and rent while 52 percent of consumers said that rising costs, including tariffs, “will significantly impact their purchasing behavior.”

Subsequently, 62 percent of consumers polled rank price as the leading factor in their shopping decisions. But that sentiment varies among generational cohorts. “Younger generations (Gen Z: 56 percent, Millennials: 55 percent) are less price-driven than Boomers (71 percent) and Gen X (68 percent),” the report’s authors said, adding that 25 percent of those polled said they “plan to reduce the number of items they purchase in response to rising costs.”

“This generational disparity suggests companies must balance affordability with other value propositions to appeal to younger consumers,” First Insight said in the report.

“In 2025, companies face a balancing act,” said Greg Petro, chief executive officer of First Insight. “As consumers grapple with an uncertain economic outlook, they are demanding lower prices while still expecting smarter, more personalized experiences. Companies that embrace AI to deliver affordability alongside tailored solutions will not only navigate this challenging landscape but will also seize the opportunity to foster loyalty, drive growth, and stay ahead of the competition.”

Regarding the use of AI, First Insight found that 40 percent of consumers polled said they have interacted with AI-driven tools such as chatbots (56 percent) and personalized recommendations (47 percent). The results showed that 75 percent of AI users “say these technologies enhance their purchase experience,” the report’s authors said, also noting that challenges persist in engaging younger consumers. “While 79 percent of Gen X and 78 percent of Millennials report satisfaction with AI, Gen Z trails at just 63 percent, revealing opportunities to better align AI tools with younger consumers’ expectations,” the report stated.

First Insight said the survey underscores a pivotal moment “for companies as consumers demand both affordability and innovative, personalized experiences,” and noted that retailers and brands that can seamlessly blend value with AI-driven insights “will lead the industry forward, catering to diverse generational preferences.”