Generative AI reshapes online shopping discovery with conversational search

AI-powered search could influence more than US$595b in retail e-commerce by 2028.

Generative AI is rapidly reshaping how consumers discover products online, shifting digital commerce from keyword-based search toward conversational, AI-led recommendations, according to Euromonitor International.

In its report, Euromonitor said generative AI-powered search tools and emerging forms of “agentic” commerce are becoming key gateways between consumers and brands.

Discovery is increasingly driven by context-aware, conversational answers rather than traditional search results, the firm noted.

It also reported that AI-driven referrals to e-commerce sites increased by 109% between January and September 2025, compared with a 7% growth from all other referral sources.

The firm said this shift is compressing the traditional purchase funnel. Instead of navigating multiple steps, such as searching, browsing, reading reviews, and comparing products on retailer or brand sites, shoppers are increasingly relying on chat-based assistants to complete discovery and evaluation before visiting any site.

Retailers are already adapting to this change. Euromonitor noted that companies such as Target have begun integrating their apps within ChatGPT, reflecting early efforts to remain visible in AI-mediated discovery environments.

According to Euromonitor, the rules of visibility are changing. The firm said competition is moving from “share of views” to “share of conversations,” as AI-generated answers do not guarantee placement for any brand. Even established market leaders can be excluded from recommendations if they are not surfaced by AI systems.

The analysis suggested that the impact could be significant in certain categories. In US skin care, Euromonitor said early findings indicate that up to half of existing brands may face a gradual loss of relevance as consumer attention shifts toward AI-driven discovery.

It estimates that AI-powered search could influence more than US$595b in retail e-commerce by 2028.

Despite this growing influence, Euromonitor said most brands remain largely invisible in AI-led commerce. Across more than 8,700 online brands analysed, only up to 30% had any visibility on generative AI platforms, and just 10% to 15% were being referred onward to e-commerce sites.