The Psychology of AI in Commerce: Agentic Shopping and Consumer Behavior | Luca Cian, Marketing Professor

What happens when consumers start trusting AI agents more than friends for shopping advice? On this episode of Retailgentic, we welcome Professor Luca Cian from the University of Virginia’s Darden School of Business.Luca brings a unique perspective as a psychologist turned marketing scholar whose research spans visual persuasion, AI adoption, and consumer trust. We dive deep into how shoppers perceive AI in utilitarian vs. hedonic purchases, why trust in AI depends on “augmented decision-making,” and how brands should prepare for an AI-first retail future.From the paradox of choice to the emerging world of “GenAI Engine Optimization (GEO),” this conversation is packed with insights on how AI is rewriting the rules of marketing, loyalty, and consumer psychology.Tune in for:The psychology of trust in AI: why we accept AI for practical tasks but resist it in creative/hedonic domainsThe paradox of choice and how AI alleviates decision fatigueHow brands can adapt to the rise of agentic commerce and GEO (GenAI Engine Optimization)Future of loyalty programs when shopping decisions are mediated by AI agents🕒 Timestamps:00:02:05 — Guest intro: Luca Cion, UVA Darden professor, studies consumer psychology and AI in marketing.00:09:36 — Early AI research with GPT-3 preview; skepticism then rapid shift in perception.00:17:12 — Survey: 60% trust AI purchase suggestions more than friends → ties to “paradox of choice.”00:21:01 — Word-of-Machine Effect: AI trusted for utilitarian products, humans preferred for hedonic ones.00:28:53 — Trust grows when AI is augmented by humans and shows transparency (black box effect reduced).00:36:11 — AI Mistake Generalization: consumers forgive humans but not AI; one AI error erodes trust broadly.00:46:06 — Loyalty as a decision shortcut; in the AI age, human touch and anthropomorphism become vital.00:50:40 — People blame AI less than humans for unfair treatment (e.g., firing decisions).00:53:32 — Executive MBA discussions: AI displacing middle management but creating future opportunities.00:58:00 — Managers should lead with human strategic vision, then use AI/data to validate decisions.🧠 Want to stay ahead in AI commerce? Subscribe and follow along: 📰 Subscribe to the free Substack: retailgentic.ai📺 Watch episodes on YouTube: youtube.com/@retailgentic🎧 Listen wherever you get your podcasts: Spotify, Apple, etc.