Acceptance of AI technology in retail: The case of Generation Z and Generation Y

Abstract

In recent years, technology applications in the retail industry have grown and generated significant value to the businesses and customers. While enhancing customers’ experiences by personalizing needs, the technology in the retail industry is also facing various risks, especially privacy concerns. This study investigates the impact of privacy concerns through the Social Contract Theory, also combining the Technology Acceptance Model to evaluate behavioral intention towards Self-Services Technology (SST) integrated AI at retail stores. The survey received 250 responses from Gen Z and Gen Y in Ho Chi Minh City, using Smart PLS 4 to evaluate the data. The results show a forceful impact of the perceived ease of use and the perceived usefulness on behavioral intention. Privacy concerns are not the factor causing the negative effect on behavioral intention. This understanding will contribute to the theoretical aspect and the practical implications for the administrators when using the new technology to augment the users’ experiences in purchasing.