Shopping with AI

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The rules of digital marketing are being rewritten in real time. Large language models are reshaping how consumers discover products, evaluate brands, and make purchasing decisions — and the disruption is happening faster than most marketing teams can keep up. According to research from Boston Consulting Group and Moloco, 67% of senior marketing leaders expect high AI-driven disruption to their consumer journey. The question is no longer whether to adapt, but how quickly can brands build the foundations that will sustain them through the shift.

The Discovery Problem Is Already Here

For years, search has been the backbone of digital discovery. Consumers had a need, typed a query, and brands competed for placement in the results. Today, that model is fracturing — and for brands built entirely around search intent, it's fracturing fast enough to feel like freefall. AI-generated summaries and zero-click experiences are compressing the funnel, and the brands feeling it most are the ones who never built a relationship beyond the search bar and open web.

According to a recent survey from my company, Prosper Insights & Analytics, while a majority of consumers shop for and make purchases with their phones, only 35% research products on that same device. They simply don’t need to search as they used to, as 70% of shoppers say that AI shopping often “anticipates their needs before they even ask,” per the IAB.

Thus, brands waiting for search intent signals may already be missing significant opportunities to influence purchase decisions. Indeed, BCG's research identifies search-heavy sectors as facing the greatest discovery risk, while verticals with strong in-app marketing demonstrate notably lower disruption exposure.

Thus, it’s not surprising that nearly a third of advertisers and publishers are now optimizing content for AI-led discovery, per Emarketer. Optimizing campaigns alone are not enough.

“As LLMS rapidly shift consumer behavior, we're seeing an existential crisis for many digital brands that grew-up in the age of search,” says Paul D’Arcy, Chief Marketing Officer at Moloco. “For these brands, the key opportunities are to diversify acquisition channels, to build stronger and stickier digital experiences, and to find ways to re-engage lapsed users and customers. With the growth of AI advertising, there is an opportunity to clearly define outcomes that matter to the business and to focus on finding new paths to drive these outcomes at scale."

The App Advantage

In this environment, channels with direct engagement and first-party data access are best positioned to withstand disruption. BCG's research confirms that verticals with deep app engagement — social, financial services, and fintech — score highest on customer relationship strength. Travel and auto marketplaces, categories historically reliant on search and comparison shopping, bottom out on all three customer relationship metrics.

The implication is clear: brands that have invested in owned channels, particularly mobile apps, enter the AI era with a structural advantage. They have direct lines to their customers that don't run through a platform algorithm or a large language model's summary of the web. Every interaction within that owned environment generates first-party data — the kind of signal that becomes more valuable, not less, as third-party data becomes harder to rely on.

According to BCG, approximately three in four marketing leaders (77%) are prioritizing first-party data capture — a clear signal that the migration toward owned infrastructure is already underway.

Loyalty Is Harder to Build and Even Harder to Measure

Even as discovery paths fragment, the emotional stakes of brand relationships remain high. The challenge is that loyalty — already difficult to cultivate — has become harder to measure accurately in an AI-mediated world.

According to Prosper Insights & Analytics, 45% of consumers now feel comfortable letting AI make purchases on their behalf, with Millennials leading the adoption curve: 35% say AI is very important in influencing their behaviors, compared to 21.5% of adult consumers overall. When AI becomes a purchase intermediary, brand preference has to be strong enough to survive the hand-off — the consumer has to want your brand even when they're not the one clicking.

Per D’Arcy, "In a world where it's harder for a new brand to be discovered, established brands have an advantage. But every brand needs new consumers to grow. What's changed is that loyalty now has to be earned in moments you control, because you have less and less influence over the moments you don't."

This puts new pressure on every direct touchpoint. According to a recent Prosper Insights & Analytics survey, 42% of consumers use their phones to read customer reviews, and 47% of consumers now use generative AI to research purchases — up six percentage points from 2024 per BCG. Brands can no longer assume they control their own narrative. How a brand appears when someone else is telling its story — a review, an AI summary, a social recommendation — may matter more than the brand's own messaging.

Signals, Not Just Data

The instinct in a period of disruption is to collect everything. But the volume of data is not the same as the quality of the signal. The brands building durable performance in the AI era are doing something more deliberate: identifying the outcomes that actually matter to the business, then mapping backwards to find the consumer behaviors that reliably predict those outcomes.

"The temptation is to optimize for whatever the platform is measuring," D'Arcy adds. "But platform metrics and business outcomes aren't always the same thing. Marketers have to be able to identify the signals that matter in consumer behavior and train their AI-powered tools accordingly. That's the new competitive edge."

This is particularly relevant as retail media networks continue to gain ground. BCG reports that 70% of marketers see RMNs as more important year over year — and consumer behavior supports the investment. According to Prosper Insights & Analytics, 44% of consumers actively use special offers that brands send via mobile messages. To power those offers and other content personalization, 72% of marketers are leaning into AI-driven ad creation, per BCG.

Is it working? For marketers still measuring clicks, the answer may be unclear, as engagement is shifting. A journey that may start on CTV can easily hop to a mobile device, as 40% of people report using their phones to scan QR codes, per Prosper Insights & Analytics. It’s a signal that cross-device measurement, long discussed but inconsistently executed, is more important than ever.

The death of the click has been widely mourned in marketing circles, but the click was never the point. Rather, the point in measurement is understanding whether a consumer moved closer to a purchase. In an AI-first world, that understanding requires a more sophisticated and intentional approach to measurement — one that isn't dependent on any single platform's reporting.

Building for What Comes Next

The brands that will thrive in the age of AI are not the ones who react fastest to each new model release. They are the ones building direct relationships, owned channels, and signal intelligence that compound over time. The disruption is real and the pace is uncomfortable. But the fundamentals of what makes a strong digital business — genuine consumer relationships, clear outcomes, and the ability to measure what actually matters — have not changed.

What has changed is how much those fundamentals matter.

Disclosure: The consumer sentiment study referenced above was conducted by my company, Prosper Insights & Analytics. This is the same dataset used by the National Retail Federation, and available from Amazon Web Services, Bloomberg, and the London Stock Exchange Group for economic benchmarking.