Calculating consumers evaluate ways to cut costs, major purchase decisions as they grapple with tariffs and escalating economic volatility: KPMG survey

“People are getting more comfortable using AI themselves—but that doesn’t mean they trust how organizations are using it. Consumers expect intelligent, seamless experiences but not at the cost of security, accuracy, or empathy. The next era of customer experience won’t be defined by how fast AI is adopted, but by how deeply trust is embedded into every interaction.”

-  Steve Chase, KPMG U.S. Vice Chair of Artificial Intelligence & Digital Innovation  

• When asked how significant of an impact GenAI has on their day-to-day personal life, 45% say it is having a significant impact, up from 41% the year prior. Gen Z (57%) and millennials (55%) are the most likely to say the impact has been significant, compared with 40% of Gen X respondents.
• When asked how often they use GenAI for personal reasons, 39% say they use the technology daily or weekly for asking questions in a similar manner to how they use a search engine, followed by 26% who use it for advice on specific topics such as health advice and travel planning, while 24% use it for summarizing content.
• In their professional lives, 45% of Americans say GenAI is having a significant impact on their day-to-day lives, up from 40% in 2024. Generational gaps exist , with 60% of Gen Z and 57% of millennials saying the impact has been significant, compared with just 41% of GenX respondents.
• Among those making $75,000 to $99,999, 58% say GenAI is having a significant impact on their professional lives compared with just 40% of those making between $35,000 and $49,999.

“Consumers are increasingly scrutinizing their financial institution’s ability to prevent cybersecurity breaches and fraud in the era of digital banking. Trust remains at the heart of the banking sector and is taking on greater significance as institutions provide more digital banking and AI-powered capabilities.”

-  Peter Torrente, KPMG U.S. Banking and Capital Markets Sector Leader

• 26% of people say they have been the target of attempted bank fraud in the past year, affecting twice as many  Gen Z respondents (36%) as boomers (17%).
• 81% say a bank’s fraud and cyber protection capabilities are an important consideration when choosing where to bank.
• 51% across generations are worried that the proliferation of AI will increase the number of cyber attacks on their bank and the chances that their online bank accounts are compromised.
• 59% are concerned that the proliferation of AI will increase the frequency of scam attempts aimed at stealing their money.
• Only 38% trust AI to accurately detect and prevent fraudulent activities in their bank account, with Gen Z (44%) and millennials (44%) the most trusting.
• When choosing where to bank, 80% of Americans across generations and income levels say bank fees are an important consideration for them due to economic pressures from elevated prices and living costs.

“Some consumers are choosing policies with their wallets as insurance costs continue to rise. Insurance companies are grappling with how to reduce churn and increase customer loyalty, while assessing how tariffs might impact prices going forward.

- Scott Shapiro, KPMG U.S. Insurance Sector Leader

• When asked if an increase in insurance premiums has led them to shop for different insurance providers in the last two years, 21% of Americans say they have shopped for or switched auto insurance providers, up from 19% in last year’s survey.  Those making $200,000 or more are the most likely to have switched (30%), compared with 20% of those making between $35,000 and $49,999.
• 49% are concerned that extreme weather events will continue to increase their home insurance.
• When asked  if they have ever considered supplemental home insurance policies, nearly half (46%) say no. Flood insurance (16%) and valuable personal property coverage (14%) are the top two choices for supplemental policies.
• Only 41% of drivers are comfortable with insurance companies having access to their driving data.
• Only 29% of people believe that insurance companies are leveraging GenAI to improve their services and interactions with customers, while only 32% trust the accuracy of the information and recommendations provided by AI agents in handling their insurance needs. 

"Tariffs can reshape energy markets in complex and sometimes counterintuitive ways. Their impact on energy prices depends entirely on their scope and intensity. Broad, deep tariffs that hamper global economic growth can depress demand for oil and gas while making the financing and equipment for solar, wind and nuclear projects more expensive.”

- Angie Gildea, KPMG U.S. Energy Leader

• Tariff concerns are seen as the single biggest factor driving up prices across all sources in the long term (45%), more than extreme weather (37%), the energy transition (31%) and increased AI/data center use (26%).
• Assuming all costs are equal, respondents are most comfortable with solar energy being a part of their utility’s electricity generation (71%), followed by wind (63%), fossil fuels (44%) and nuclear (40%).
• More than half the respondents (53%) also view solar energy as the source most likely to decrease energy prices over the long-term, followed by wind (41%), nuclear (33%) and fossil fuels (17%).
• Even though nearly one-third of respondents believe  nuclear energy will lower their energy costs  in the long term, 33% are not comfortable with it as an energy source.
• 57% of men are comfortable with nuclear energy compared to 24% of women, assuming all costs equal. 

"Consumers no longer wait for the news. They get it when they want it, from voices they trust. 'News influencers' found on independent websites and social media platforms are increasingly driving a more personal and immediate approach to how information is delivered."

- Scott Purdy, KPMG U.S. Media Industry Lead, Strategy

• When asked about where they go to get trusted news information, consumers report they increased their consumption of social media (30%) and independent opinion media like podcasts and Substacks (24%) the most over the past year, compared with traditional cable (16%), traditional print (13%), local newspapers (13%), and local cable news (13%).
• Meanwhile,  30% indicate they have decreased their consumption of national print media over the past year, followed by traditional cable (29%), local newspaper (29%), local cable news (23%), social media (21%) and independent opinion media (16%).
• Only social media and independent opinion media have seen a net increase in consumption.
• 53% of Gen Z and 36% of millennials say they have increased their use of social media as a source for getting trusted news information over the past year.
• 29% of Gen Z and 30% of millennials have increased their use of independent media sources like podcasts and Substacks as sources for getting trusted news information. 

“Consumer spending in media follows a clear pattern: minimize costs through ad-supported options for everyday content, and splurge on the high-value categories – predominately buzzy series, shows that evoke a sense of nostalgia, and live sports.”

- Frank Albarella, KPMG U.S. Media & Telecom Leader

• 70% of Americans are using or are likely to use free ad-supported TV as an alternative to ad-free streaming over the next six months.
• 45% indicate they already are or are likely to begin using lower cost ad-supported options for their streaming accounts such as Netflix and Hulu.
• Respondents indicate that nostalgic content (53%) and live sporting events (44%) are two of the biggest drivers impacting their decisions to subscribe or re-subscribe to a service.
• 55% of men indicate that live sports have impacted their decision to subscribe or re-subscribe to a service.
• 66% of Gen Z respondents and 60% of millennials cited nostalgic content as a driver behind their decision to subscribe or resubscribe to a service. 

“Americans are sending a clear message to consumer and retail companies when it comes to paid memberships and subscriptions: They are spending smart and cutting down on expenses. Only offerings with true value will get their attention.”

- Duleep Rodrigo, KPMG U.S. Consumer and Retail Sector Leader

• Only 22% of Americans are very likely to consider a paid membership or subscription in the future, down from 28% a year ago, with declines across all generations.
• Half of Americans surveyed subscribed to online shopping platforms in the past year, a dip from 54% a year ago. Gen Z is the contrarian (59% this year, compared  with 51% last year).
• When asked what makes a paid membership or subscription service most appealing, Americans cite discounts on products or services (71% in 2025, 59% in 2024) and free shipping or expedited delivery (69% in 2025, 52% in 2024).

“Tariff pressures are prompting manufacturers to rethink investments-delaying or redirecting capital towards markets with presumed trade stability and favoring flexibility over scale. At the same time, consumers are holding back on big-ticket purchases, adding to the headwinds facing industrials.”

- Claudia Saran, KPMG U.S. Industrial Manufacturing Sector Leader

• When asked their preference if an electric vehicle (EV), standard gas-powered vehicle and hybrid vehicle were priced the same, Americans’ interest in standard gas-powered vehicles has climbed (42% in 2025,38% in 2024) at the expense of EVs (16% in 2025, 21% in 2024) driven by swings in millennials and boomers from EVs to gasoline. Hybrids are preferred overall by 32% of Americans this year, compared with 34% in 2024.
• Among Americans indicating they are in the market for cars, 43% say they will delay their purchase of a new or used vehicle until they know the impact of new tariffs on vehicle prices. Another 17% say they would buy sooner before any price increases. In both scenarios, Gen Z and millennials are the most likely to take these actions.
• 57% of Americans prefer to buy their next vehicle from a traditional dealership followed by online direct-to-consumer automakers(10%), online marketplaces (9%) and private sellers (10%).
  

“Consumers in the age of precision medicine are discerning about their treatment choices, considering both efficacy and affordability. As they become more informed about GLP-1s, they recognize the benefits but are still wary of the personal cost. Pharmaceutical companies have the opportunity to continue educating consumers while seeking to strike an optimal price point.”

- Kristin Pothier, KPMG U.S. Life Science Sector Leader

• 67% of people say weight loss is the main benefit of taking GLP-1 drugs such as Ozempic or Wegovy, followed by helping to combat diabetes (56%) and cardiovascular disease (42%).
• 71% say they would not be willing pay out of-pocket for GLP-1s, while only 20% say they would be willing to pay up to $100.
• Views vary among generations and income levels as 59% of Gen Z say they would not be willing to pay for GLP-1s compared with 75% of Gen X respondents.
• Among those making $50,000 and $74,999, 72% are unwilling to pay out-of-pocket compared with 52% among those making between $100,0000 and $149,000.
• 55% of respondents say that if their child’s doctor recommended GLP-1s for their child they would not be comfortable with their child taking them.
• When asked about the benefits of using GenAI in healthcare, respondents most commonly cite responding to questions virtually (47%), remote monitoring and early detection of health issues (34%) and lowering healthcare costs (32%).
• When asked about their concerns about the use of GenAI in healthcare, respondents most commonly cite lack of human interaction and empathy (59%), reliability and accuracy of AI-generated diagnoses (54%) and privacy and security of personal health data (53%). 

“The emergence of technologies such as GenAI are leading Americans to question the future job market and the skills needed to thrive. Higher education institutions face an urgent need to adapt to meet the evolving expectations of Americans who are keen to ensure their qualifications pave the way to successful careers.”

- Andy Gottschalk, KPMG US Education Sector Leader

• 50% say a traditional higher education degree is no longer essential as apprenticeships and other technical training programs can provide the skills needed to secure well-paying careers across various industries.
• This sentiment is particularly strong among Millennials, with 51% in agreement, and even more pronounced among those earning between $100,000 and $149,000, with 57% in agreement—representing the highest percentages among all generational and income groups.
• 61% do not agree that colleges and universities are effectively preparing students for the evolving job market.
• When asked about the technological infrastructure of higher education institutions in the U.S., 55% do not believe it is sufficient to support remote and hybrid learning formats. Views vary among income levels with only 37% of those making between $25,000 and $34,999 agreeing compared to 59% of those making between $100,000 and $149,999.