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The AI Shopping Revolution: What Consumers and Brands Need to Know

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Artificial intelligence (AI), once seen as a futuristic concept prevalent only in science fiction, has now permeated our everyday lives. Today, it’s a practical tool that is reshaping the way consumers shop online. As digital commerce becomes increasingly complex, shoppers are turning to AI-powered solutions for efficiency, better deals, and a more intuitive, native search experience.

Both online shopping and the consumer journey are undergoing massive changes thanks to AI technologies that are advancing at a breakneck speed. It’s crucial to take stock of the latest trends, research, and expert analysis to provide an unbiased overview of how AI is transforming the consumer journey, the benefits and challenges AI shopping presents, and what brands and marketers need to know to stay ahead.

The Mainstream Adoption of AI Shopping

AI is no longer a novelty in e-commerce. According to recent industry research, 60% of American shoppers have used AI to assist with online purchases, signaling a significant shift in consumer behavior. This adoption is not limited to younger generations; over half of shoppers aged 65 and above have also engaged with AI shopping assistants. The gender gap is minimal, with both men and women reporting similar usage rates.

AI’s appeal lies in its ability to streamline the shopping process, offering time savings, personalized recommendations, and access to better deals. As AI becomes further integrated into everyday platforms, its role in online shopping will undoubtedly expand even further. Building on this widespread and growing adoption, consumers now have access to a variety of AI shopping tools that cater to different needs and preferences. What’s more, these tools are becoming increasingly native in the sites, apps, and surfaces consumers already use.

General vs. Specific AI Shopping Platforms

General AI assistants such as ChatGPT, Gemini, and Claude aggregate products, prices, and reviews from across the web, enabling broad, unbiased comparisons. In contrast, brand-specific AI tools like those offered by Target or Nike focus on their own inventory, providing a more tailored but narrower experience.

Research shows that seven out of 10 shoppers globally want retailers to offer AI-powered shopping features. These consumers overwhelmingly prefer general AI platforms that allow them to compare products across multiple brands and retailers, with 84% citing the importance of seeing results from more than one brand.

This preference reflects a desire for transparency and the ability to find the best value without being limited to a single brand’s ecosystem. As consumers become more comfortable with these platforms, their shopping habits are shifting away from traditional search engines and toward AI-driven solutions.

How Consumers Use AI Throughout Their Shopping Journey

For years, legacy search engines like Google and Bing dominated the online shopping landscape. However, a growing number of consumers now prefer to start their product searches with AI-powered assistants to help with initial research and information gathering. Recent data suggests that 31% of shoppers begin their journey with AI, compared to 21% who still rely on traditional search engines. AI’s ability to interpret natural language queries and deliver personalized, relevant results is a key driver of this shift, which has driven the recent increase in popularity of native search experiences.

More than 70 percent of AI-powered search users ask questions during the awareness stage, broadly research products, brands, and services, and plan for trips and special occasions. Further down the funnel, the technology is heavily used by consumers to help explain product features and specifications, summarize reviews and features, compare products and services, and ultimately generate personalized recommendations to arrive at a purchasing decision.

As AI search tools become more sophisticated, they are poised to further disrupt the dominance of legacy platforms. With this shift in search behavior, consumers are also seeking new features and benefits from AI shopping tools.

Desired AI Features and Benefits

Consumers are seeking AI features that enhance convenience and value. The most desired capabilities include product comparison tools, real-time deal alerts, time-saving automation, and stress reduction. AI is used at various stages of the shopping journey, from initial research and discovery to product comparison, price tracking, and even checkout. The primary benefits of using AI search tools include time savings, more relevant results, and reduced decision fatigue. However, as shoppers increasingly rely on AI, concerns about trust, privacy, and market dynamics are beginning to emerge.

Trust, Barriers, and Market Dynamics

Despite the clear benefits, concerns about privacy and data security remain as notable barriers to wider AI adoption. Over 60% of consumers express worry about how their personal information is used by AI shopping tools. Men are more likely to be concerned about the accuracy of AI recommendations, while women tend to prioritize transaction security.

Transparency in how AI makes recommendations, clear data privacy policies, and the option for human support are among the top factors that would increase consumer comfort with AI-powered shopping. These concerns are influencing how brands and platforms respond to the rise of AI shopping assistants.

The Platform Wars: General vs. Specific AI

The rise of general AI shopping assistants poses challenges for traditional e-commerce platforms and brands. Some retailers have responded by restricting AI engines from scraping their websites, while others are developing proprietary AI tools to retain customer engagement. The competition between open, multi-brand AI platforms and brand-specific assistants is shaping the future of online shopping, with implications for both consumers and advertisers. As the market adapts, the upcoming holiday season will serve as a critical test case for AI’s impact on shopping behavior.

AI’s Role in Holiday Shopping and Economic Impact

The 2025 holiday season is expected to be a pivotal moment for AI-driven shopping. While only 30% of consumers used AI for holiday shopping in the past, 57% plan to do so this year. Adobe also found that between Nov. 1 and Dec. 31, 2024, traffic from generative AI sources increased by 1,300 percent compared to the year prior.

Economic factors such as inflation are also influencing shopping behavior, with many consumers seeking greater value and efficiency through AI tools. As consumers prepare for the holidays, especially in categories like electronics, fashion, home goods, and toys, their choice of devices for AI shopping is also evolving.

Devices and Shopping Behavior

While mobile devices dominate overall e-commerce, laptops are the preferred device for AI-powered shopping. This suggests that consumers engage in more in-depth research and comparison when using AI, favoring larger screens for complex decision-making. Early shopping trends indicate that consumers are starting their holiday purchases sooner, leveraging AI to find the best deals ahead of peak season. These shifts in behavior highlight the need for brands and marketers to adapt their strategies to meet evolving consumer expectations.

Strategic Imperatives for Brands and Marketers

For brands and marketers, the rise of AI search represents both a challenge and an opportunity. Advertisers who proactively bring AI surfaces into their media mix can capture consumer intent at critical moments, build customer loyalty, and drive measurable results. Those who adapt quickly are likely to gain a competitive edge as AI becomes the standard for online shopping.

To succeed in this new landscape, brands should consider implementing clear and robust data privacy policies, offer human support and override options for AI suggestions, and prepare for the next generation of AI-powered search advertising, focusing on contextual and conversational placements.

The brands and marketers that embrace this new paradigm and recalibrate their strategies to meet consumers where they’re actually searching and shopping today will be best positioned to thrive in the evolving landscape of AI-driven retail.

Asher Feldman is VP of Analytics at adMarketplace, the leader in Native Search™ advertising for over 25 years. He leads measurement and insights initiatives that enhance and optimize digital media investments. Previously, Asher shaped NBCU New Group’s data strategy, pioneering new measurement methodologies across four legacy news brands (NBC News, MSNBC, CNBC and the Today Show).