By Craig Smith, UK Country Manager at ecommerce technology platform, Scayle
This month, OpenAI debuted Operator, a new AI agent that can be used in the ecommerce journey. Already in use by brands like Etsy, eBay, and Instacart, Operator can browse product options on behalf of a shopper and even order items on their behalf. This followed the news that Perplexity is exploring a merger with TikTok – which would see the social platform increase its AI search capabilities, changing the face of TikTok Shop. AI search is on the rise.
It’s not hard to see why AI companies and retail brands are keen to integrate AI for search into the ecommerce journey: customers who use search tools spend almost three times as much on ecommerce sites as those who don’t. The advanced capabilities of AI search, such as ultra-personalised product recommendations, have the potential to drive conversion rates even further.
Bad experiences on traditional search engines can seriously harm performance. Retailers lose over $2 trillion dollars a year on abandoned product searches, often caused by overwhelming amounts of irrelevant results that are a chore to sift through.
AI search engines provide a viable alternative: 82 percent of customers want AI to help reduce time spent on researching products, so it’s no surprise that it’s poised to replace traditional search channels for shoppers. Ecommerce leaders must prepare to meet shoppers at this new starting point, or risk losing touch with key customers.
Utilising high-intent channels
Over half of shoppers are overwhelmed by the sheer volume of products online, meaning they’re less likely to take a chance on new products or brands. AI search tools eliminate this issue by giving users dedicated channels to streamline product discovery, saving them time and stress while shopping.
Because AI search tools can answer specific, complex queries about products, like “roomy handbags for travelling with children”, with exact results (something that a traditional Google search can’t always do), they naturally have higher conversion rates. Users go there with an intent to buy, rather than to sift through thousands of listings.
AI search providers are very willing to collaborate with ecommerce leaders. Perplexity AI has already launched a free Merchant Program, and Open AI has launched Operator. Other AI tools will be quick to follow suit as providers seek new revenue streams from retail partnerships.
Retailers should choose carefully when joining up with an AI channel, as they don’t all provide the same merchandising opportunities. Currently, Google Gemini and Perplexity have made the best accommodations for retailers, and are safe bets for ecommerce activations.
Enhancing ad performance
AI search engine advertising boasts a 76% higher conversion rate than traditional search, making it a desirable option for ecommerce leaders to achieve ROI on marketing spend.
AI search tools harness users’ browsing data to select the best ads to display in searches. User intentions change constantly, but with the real-time search capabilities that most AI tools now have, they can keep track of users’ wants and needs from moment to moment.
We know AI search tools are used by shoppers with a strong intent to buy, so ads can be strategically deployed to compliment the user’s intentions. These tools can suggest add-ons (for example, keyboards and mouses for a search for gaming laptops), creating an easy avenue for retailers to target product discovery paths and make sure their most relevant products are displayed at the best time.
Precision personalisation
AI search engines can understand user intent and context far better than any other channel, including AI agents, which have limited knowledge bases and can’t retain data in most customer service applications. This makes AI search the best tool for retailers to use when promoting product listings, as they can be confident that the right products will meet the right customers.
Visual AI search channels, like Google Lens and Syte.ai, eliminate the hassle of writing text prompts altogether by allowing users to find products by uploading photographs, providing listings either exact to the image, interesting alternatives, or complementary products. Retailers have an opportunity here to place their products high up in these visual searches by sharing their images with partnered search platforms.
AI search will redefine how the next generation of customers shop. Just as Google search drove unprecedented levels of mass adoption around the globe, large language model applications will drive huge changes in human behaviour across society and retail specifically.
Those who adopt early, actively participate in merchant initiatives and incorporate AI search platforms into their advertising strategies have the chance to shape the future of search commerce. Retail leaders must get ahead now to make sure they get a fair share of this new market.
