Is Retail Ready for AI Shaking Up How We Shop?
About 25% of UK shoppers already use AI to find products, with usage highest among those aged 25-34 at up to 30%, while only around 1% of shoppers aged 65 and over use AI for product discovery. Large language models such as ChatGPT and Gemini are transforming how retailers approach product discovery beyond traditional search engine optimization (SEO), relying heavily on product data, availability, and customer reviews.
Brands must now appeal to AI bots as well as shoppers, as online visibility increasingly depends on earned trust, sentiment, and a strong online experience instead of purchased advertisements alone. For example, Moonpig uses generative engine optimization (GEO) to improve AI search discoverability by generating relevant content like gift ideas and discussions.
Retailers are experimenting with various tactics including engagement on platforms such as Reddit, ensuring comprehensive Google and Trustpilot reviews, and making sure AI models can access accurate product data. Given that AI models may rise and fall in prominence, retailers need to adapt continuously.
The future may see AI agents autonomously executing complex shopping tasks including negotiating deals, bundling items, and organizing delivery. Dynamic pricing adjustments for searchers could also emerge. However, glitches in AI operations raise questions about liability. UK regulations currently restrict AI bots from placing purchases without human oversight. Issues around data privacy and access remain concerns, as exemplified by Amazon’s lawsuit against Perplexity over AI shopping features.
Independent retailers may benefit from greater agility in this evolving landscape. Guidance for retailers includes being explicit about their identity, maintaining up-to-date product imagery, and encouraging positive customer reviews. Maintaining a strong website remains essential to compete effectively in an AI-driven retail environment.
