Why big brands are using AI to summarize product reviews and how your business could be impacted

Enter artificial intelligence. As consumer feedback becomes more voluminous and complex, leading brands are increasingly using AI to summarize reviews, drive desired consumer behaviors, and enhance the shopping experience. Here’s how this trend may impact your brand's visibility.

Why are customer reviews important for ecommerce?

In 2024, 75% of customers “always” or “regularly” consult reviews when researching businesses – and in fact just 3% of customers “never” consult a review – according to a recent study, illustrating the way customer reviews have become an indispensable part of the e-commerce landscape.¹

Customer reviews help businesses:

• Foster customer trust. A full 50% of consumers trust online reviews as much as personal recommendations from friends and family – a number that may be growing.¹
• Drive conversions. A pioneer of online shopping experiences, Amazon once categorized customer reviews as an initially radical idea, but one of its most important features – and now essentially synonymous with the customer journey for online shoppers.²
• Provide valuable feedback. Reviews may offer critical insights that can inform your product and marketing strategies.
• Outshine business competitors. Positive reviews can help set your brand apart in a crowded marketplace.

What are AI-summarized product reviews, and why are businesses implementing them?

AI-summarized product reviews distill vast customer feedback into digestible, informative summaries.

For example, if a shopper is curious about an item’s quality, they can simply click the “quality” attribute in the review summaries to easily locate reviews that discuss the product's performance and durability.

The implementation of AI reviews may offer multiple benefits, including:

• Streamlining the customer experience. Customers can quickly grasp common themes related to a product's strengths and weaknesses. By reducing the time they spend in the decision-making process, retailers can improve customer satisfaction.
• Increasing conversions. Businesses can highlight positive aspects while minimizing the impact of negative reviews, reinforcing consumer confidence. The result is a more persuasive presentation of the product that can lead to a higher conversion rate.
• Keep customers’ attention on the brand website. AI-summarized product reviews may discourage customers from seeking additional reviews – whether on third-party or competitor sites – which could introduce doubts or lead to lost sales.

How do AI-generated review summaries work?

AI-generated review summaries leverage generative artificial intelligence technology to analyze and condense customer feedback for a product into a digestible format. The primary focus of these summaries is on the positive aspects of the product, emphasizing what customers appreciate the most.

However, they don't completely omit the negatives. While the emphasis is less on the drawbacks, these summaries strive to maintain a balanced view by mentioning criticisms to a certain extent.

Why are some brands worried about AI reviews?

Some brands have expressed concerns about AI-aggregated customer reviews, particularly regarding the accuracy and representation of their products.

For example, there is a potential for AI to misinterpret or inaccurately reflect the essence of customer feedback. Whether due to AI’s limitations in understanding language nuances or sarcasm, there is a risk of publishing summaries that might not fully capture customer sentiment.

The ongoing battles against fake reviews and online shopping scams add another layer of complexity to AI reviews. AI systems, if not meticulously designed with fraud detection in place, could inadvertently give prominence to misleading feedback, further complicating the trustworthiness of online reviews.

These issues aren’t just a concern for businesses; they potentially provide customers with a distorted view of a product, influencing purchasing decisions based on incomplete or inaccurate information.

Amazon, for instance, is continuing to invest heavily in fraud detection and other security measures to mitigate customer mistrust and uncertainty for businesses.²

How to make customer reviews part of your growth strategy

In a survey of entrepreneurs currently using AI or automation in their marketing, 60% say they’re more efficient.³ While the adoption of AI-generated review summaries by major websites and marketplaces is largely out of individual businesses' control, it’s important to adhere to best practices around customer reviews to help drive customer growth:

• Encourage customer feedback through engagement initiatives. This proactive strategy tends to yield a higher volume of positive reviews, as satisfied customers might need encouragement to share their experiences, whereas dissatisfied ones are more naturally inclined to express their views. Make sure to include clear CTAs that clearly request customers to leave reviews in your post-purchase emails, on your website, and within your social media channels.
• Steer clear of fake or paid-for reviews. Such practices damage a brand's reputation and can lead to punitive actions from selling platforms.
• Monitor reviews diligently. Businesses demonstrate commitment to customer satisfaction when they identify and address concerns swiftly. Engaging positively with reviews, whether favorable or critical, also shows customers that their feedback is valued and considered. Studies show that 41% of shoppers are more likely to support businesses that respond to online reviews.¹
• Integrate customer reviews into your upselling strategy. By showcasing positive feedback on related and optimized product pages, you may encourage additional purchases.

The key to customer satisfaction and loyalty

Customer reviews are pivotal in shaping brand perception and enhancing consumer trust. That said, recognizing the transformative impact of AI-aggregated reviews in elevating customer feedback is just the beginning.

After drawing shoppers in with five-star reviews, providing a seamless shopping experience to facilitate their journey towards checkout is critical.

Here’s where PayPal's comprehensive online payment solutions come into play. Integrating PayPal's secure and efficient payment systems, can help businesses boost customer satisfaction and loyalty. Learn more today.