Beyond the cart – AI’s subscription revolution
Have you ever paused to wonder why your favorite brands keep nudging you toward that little “Subscribe” button? It’s about more than convenience; it’s a strategy powered by artificial intelligence to forge ongoing relationships with shoppers.
At the UB School of Management, faculty are digging into exactly how AI-driven subscription models are rewriting the retail playbook and what it means for businesses and consumers alike.
Blurring the lines between online and in‑store
When Dinesh Gauri, Melvin H. Baker Professor of Marketing, surveyed nearly 1,800 U.S. consumers in fall 2024, one group stood out: hybrid shoppers who split their purchases between digital carts and brick-and-mortar aisles. They’re subscription super‑users, too; 66% of them tap into Amazon Prime, with another 26% opting for Walmart+ and over half holding wholesale club memberships.
These findings spotlight how AI tools are tailoring every touchpoint — from personalized shopping lists to virtual try‑ons — so that moving between channels feels seamless.
When parents press “Go”
Here’s a wrinkle: busy moms and dads are early adopters of AI shopping assistants. The study found that 55% of parents use AI to assemble grocery lists, compared to a mere 8% of non‑parents.
It makes perfect sense: managing playdates and potlucks doesn’t leave much brainpower for clipping coupons. By integrating AI, retailers aren’t just selling products; they’re offering peace of mind.
Avoiding the subscription snooze
Even the savviest subscribers can hit “subscription fatigue.” According to the research, the onus is on retailers to keep demonstrating value — think surprise perks or AI‑curated deals that feel too good to ignore.
That ongoing innovation keeps the relationship fresh, much like sending a handwritten thank‑you note after a dinner party.
From the lab to the shop floor
This study lives at the intersection of research and real‑world impact. Through the Center for Marketing Analysis, UB School of Management scholars are taking their theories and partnering with retail leaders to pilot AI features that will shape tomorrow’s shopping carts. Whether it’s dynamic pricing engines or smart carts that learn your buying patterns, the goal is the same: shrink the gap between academic insights and everyday business solutions.
Why it matters for UB
For alumni, donors and community partners, the researcher’s work underscores their commitment to hands‑on learning. Students get to tackle live cases, while faculty translate data into strategic roadmaps that retailers can deploy today. It’s this blend of global perspective and local engagement that keeps the School of Management at the forefront of innovation.
Looking ahead
As generative AI tools evolve, subscription models will only grow more sophisticated. Retailers who embrace AI-driven personalization and multi‑channel harmony will stand out in a crowded marketplace. And here at UB, the next generation of business leaders is already experimenting with prototypes that could redefine loyalty as we know it.
Join the conversation
Curious to learn more? Visit the Center for Marketing Analysis or drop by the Strategic Initiatives: AI and Business Analytics page to see how UB is shaping the future of retail — one algorithm at a time.
This story was written by AI and edited by a member of the UB School of Management Marketing and Communications Office.