Retail and AI: The Slow Evolution of Shopping with Artificial Intelligence
About a quarter of UK shoppers now use AI to find products, according to recent data highlighting generational differences in adoption. PwC data reveals that up to 30% of shoppers aged 25–34 use AI tools for shopping, compared with just 1% of those over 65.
Large language models (LLMs) are shifting shopping discovery away from traditional search engines toward conversational AI, necessitating that brands optimize product data and maintain trustworthy reviews to improve visibility to AI bots. Retailers such as Moonpig employ generative engine optimization (GEO) by creating content focused on gift ideas to enhance their presence in AI-driven searches.
To adapt, retailers are establishing teams dedicated to influencing AI discovery. These teams monitor platforms like Reddit, respond to reviews, and ensure AI models have access to accurate product data. The future of AI in retail may include agents capable of negotiating deals, bundling orders, automating checkout, and organizing delivery. Platforms may monetize these services with paid search or advertising, and prices might adjust based on the specific user or searcher.
Currently, UK regulations prohibit AI bots from completing purchases without human oversight due to concerns about data privacy, manipulation risks, and legal disputes such as Amazon's lawsuit against Perplexity over an AI shopping feature. Independent retailers may advance faster in adopting AI capabilities by focusing on defining brand identity, keeping visuals updated, and gathering positive reviews to increase AI visibility.
Despite these developments, the overall pace of AI-driven retail transformation remains gradual. No dramatic changes are expected this Christmas season, with significant evolution anticipated over the next 20 years as AI retail capabilities mature.
