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Human familiarity meets machine intelligence: Evidence from experimental studies of generative AI and Financial Performance in U.K. retail

Author

Listed:
  • Metwally, Abdelmoneim Bahyeldin Mohamed
  • Al-Maghzom, Abdullah
  • Shabeeb Ali, Mohamed Ali
  • El-Halaby, Sherif

Abstract

This multi-method research investigates how Generative AI (GenAI) creates financial value in retail by shaping customer satisfaction and trust. A qualitative exploration with 39 U.K. managers, employees, and consumers identified satisfaction and trust as primary value mechanisms, moderated by GenAI familiarity and product category risk. Two complementary experiments then tested these relationships causally. Study 1 (NÂ =Â 418 consumers) examined GenAI-enabled customer interfaces; GenAI-generated product copy, personalised recommendations, and a conversational assistant; and found that GenAI significantly increased session-level financial performance (expected gross margin per visitor) through heightened satisfaction and trust. Study 2 (NÂ =Â 304 managers) demonstrated parallel mechanisms on the operations side: GenAI decision aids for pricing, assortment, and service triage improved a Financial Performance Index (FPI; gross margin, revenue lift, and cost-to-serve) via satisfaction and trust in GenAI-assisted outputs. Across studies, effects strengthened with greater GenAI familiarity and higher category risk. Robustness checks confirmed invariance and stability across analytical specifications. The findings extend Resource-Based and Dynamic Capabilities perspectives by revealing satisfaction and trust as micro-foundations of AI-enabled value creation, offering evidence that GenAI enhances financial performance when deployed in contexts combining technological competence, user familiarity, and meaningful decision stakes.

Suggested Citation

  • Metwally, Abdelmoneim Bahyeldin Mohamed & Al-Maghzom, Abdullah & Shabeeb Ali, Mohamed Ali & El-Halaby, Sherif, 2026. "Human familiarity meets machine intelligence: Evidence from experimental studies of generative AI and Financial Performance in U.K. retail," Journal of Retailing and Consumer Services, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:joreco:v:91:y:2026:i:c:s0969698926000056
    DOI: 10.1016/j.jretconser.2026.104726
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