Study: AI and trade conflicts are changing digital consumer behavior

A new study by EY shows how geopolitical uncertainties and AI will shape digital consumer behavior in Switzerland by 2025. 86 percent of respondents fear that trade conflicts will lead to rising prices for electronic devices. Nearly half already use generative AI in their daily lives, but at the same time express concerns about data privacy.

Adrian Ott, Chief AI Officer EY Schweiz
Adrian Ott, Chief AI Officer EY Switzerland (Source: zvg)

Geopolitical uncertainties, the increasing influence of artificial intelligence and a high level of price sensitivity will shape digital consumer behavior in Switzerland and globally in 2025. These are the findings of the new study "Decoding the Digital Home 2025" by auditing and consulting firm EY. Trust, data protection and loyalty will become decisive factors - from streaming to connectivity.

For the study, 20,500 consumers in 14 countries were asked about their behavior and attitudes towards technology, media and telecommunications. In addition to Switzerland, Australia, Germany, France, Italy, Canada, the Netherlands, Norway, Austria, Sweden, Spain, South Korea, the United Kingdom and the USA took part. From Switzerland, 1000 consumers took part in the study.

Trade conflicts increase price sensitivity

In Switzerland, the vast majority express strong concerns: 86% of respondents fear that trade conflicts could further increase the prices of electronic devices such as smartphones, connectivity or streaming subscriptions. Only around 15% are not at all concerned about the potential impact of trade conflicts on their monthly spending.

Cost sensitivity remains high: 62% of households want to spend as little as possible on communication services. 43% of respondents would be prepared to switch to a cheaper package - even if this meant lower service quality or limited customer support. 69% would like broadband and internet providers to do more to offer fixed price guarantees for households.

Roman Haltinner, Cybersecurity Competency Leader bei EY Schweiz
Roman Haltinner, Cybersecurity Competency Leader at EY Switzerland (Source: zvg)

In Switzerland, 63% of respondents consider annual price increases by their internet provider to be unfair, while 53% describe them as difficult to understand. Geopolitical considerations also play a role in the choice of provider. Many respondents prefer local providers - such as broadband and mobile phone companies with customer service in their own country (27%), domestic technology manufacturers (23%) or content from Swiss producers (21%).

Streaming in transition: increasing willingness to cancel

In Switzerland, over half of households (66%) use at least one paid video streaming service. Almost half of those surveyed (47%) spend between 10 and 29 Swiss francs per month on this. Price and content are decisive factors when choosing a provider: 55% pay attention to attractive prices, 36% to their favorite content and 32% to an extensive media library.

Streaming remains popular, but the willingness to cancel is increasing. Within a year, the proportion of respondents in Switzerland who have canceled or plan to cancel their streaming subscription has risen from 26% to 38%. The main reason for canceling is cost savings (28%), while 85% are also slightly to extremely concerned that trade conflicts could further increase streaming prices.

Nevertheless, the user base remains stable: 36% users in Switzerland rarely think about canceling their subscription. At the same time, high-quality and exclusive content is gaining in importance as an incentive for new users. 36% of Swiss users are primarily interested in certain films or series, 32% in large content libraries.

Generative AI is establishing itself - trust remains fragile

Generative AI is gradually changing consumer behavior worldwide. In Switzerland, the technology is already established in everyday private and professional life: 45% of respondents actively use it. Acceptance in everyday life is growing: 52% of Swiss people find AI functions on their smartphone - such as for voice assistance, text creation or photo editing - helpful. 45% find AI-supported customer support such as chatbots useful. In addition, 42% find AI-generated search results more helpful than traditional ones.

"Despite the growing acceptance of AI systems, the survey shows that there are still major question marks over the use of personal data and the traceability of generated content," says Adrian Ott, Chief AI Officer EY Switzerland.

At the same time, trust in data protection remains fragile: 58% of Swiss respondents fear that their personal data could be misused to train AI systems. 59% fear that governments and regulators are not doing enough to limit the potential risks of AI. 61% express concern that AI will make online content less trustworthy and 66% fear abuse by "bad actors". 75% call for clear labeling of AI-generated content.

Customer loyalty in transition

The Swiss market is stable, but not very dynamic: 58% of respondents are satisfied with the price-performance ratio of their internet provider. A common reason for not switching providers is the perceived expense: in Switzerland, 42% cite this. This confirms a globally observable pattern of contradictory loyalty - customer loyalty that consists of genuine approval as well as concern about the complexity of switching.

Internet speed also plays a role. 56% of the Swiss believe that switching to faster internet is not financially worthwhile, while 40% state that they are frustrated that the fastest packages are not available in their region.

Roman Haltinner, Cybersecurity Competency Leader at EY Switzerland, says: "The increasing interdependence of digitalization, global risks and artificial intelligence clearly shows that trust is becoming a decisive success factor. Companies must create security architectures that are not only technically robust, but also convey transparency and reliability. This is the only way to restore consumers' lost sense of security and create the basis for stable digital ecosystems."

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