Shopping habits are undergoing a major change as generative artificial intelligence (GenAI) becomes a go-to tool for consumers making decisions. Rather than scrolling through endless search engine results, users are increasingly relying on conversational AI apps that function as personal shopping assistants, offering product suggestions, price comparisons and reviews in real time.
Major retailers are already embracing this shift. In the US, AI-driven interactions that direct traffic to online stores increased by 4700% in the 12 months to July, based on data from a leading software provider. With tools like ChatGPT, Perplexity and Google Gemini able to understand user preferences and recommend matching products, it is not surprising that over half of US shoppers are predicted to use GenAI by the end of the year.
To keep pace, brands are going beyond traditional search engine optimisation and focusing on what is now known as generative experience optimisation. The aim is to ensure their products appear in AI-assisted chats and recommendations when users search for something specific, such as a white bookcase with adjustable shelves or the ideal foundation for dry skin. Some retailers have already started updating their websites to serve these AI platforms better, prioritising conversational relevance over high keyword volume.
This shift in shopping behaviour is not only about convenience, it is also part of a larger trend called "agentic commerce", where AI tools do more than recommend, they also carry out transactions. Some platforms are adding features that allow shopping directly within the AI chat, removing the need to visit a website. While this makes the process faster, it also skips traditional brand interaction points, leading to concerns that this could reduce brand visibility and loyalty.
There are major commercial opportunities. Retailers investing in interactive AI technologies, such as smart grocery baskets that track purchases and make suggestions in real time, are discovering new methods to increase spending. Whether it is through digital content generated by in-house creators or AI-enabled shopping carts connected to loyalty schemes, the goal is to make the user experience so tailored that browsing leads to impulse purchases.
What lies ahead may be even more transformative. AI assistants could soon anticipate users' needs and place orders automatically, based on factors like personal calendars, local weather and past purchases. While this seems convenient, it also raises a bigger issue - how much trust are consumers willing to place in decisions made by algorithms?
