Recent research suggests that artificial intelligence might recommend recognized national brands over store labels in consumer searches for everyday product needs. We turned to our How America Shops® survey data to share what retailers and brands can do to get in front of AI.
Where Does AI Fit Into Your Product Messaging?
Recent research shows that one in four consumers purchased a product recommended by artificial intelligence in the previous six months. What’s less clear is how many retailers and brands position their product marketing with such AI searches in mind.
For those brands and retailers that do not, it might be time to consider integrating AI recognition into their online communications strategies, keeping in mind they are talking to a robot as well as a consumer. Consider:
- One recent story in Entrepreneur reports that “AI decides which brands consumers see first,” stating that nearly half of shoppers use AI to research their purchases, and that 40% trust AI more than traditional search links. Our own How America Shops® research (“The Wellness Breakdown”) shows 44% of consumers have previously used AI for shopping; 26% within the previous three months.
- Other findings show that brands cited in AI Google search summaries record a 35% increase in click-through rates.
- Additionally, nearly one-third of consumers said they have used AI to prioritize certain brands over others, according to a June report in Reel 360. This makes visibility to AI search algorithms a competitive must.
Why? Because these findings suggests that, at least for now, recognized brand names will be “picked out” more by AI and thus have an advantage over private label or generic brands and lesser-known exclusive brands.
But this also presents opportunity for retailers that contextualize AI-shopping into their own private label strategies – as long as they learn to balance their private label portfolio beyond just price, and rely equally on the recognition factor.
What Our Shopper Research Reveals About Consumer AI Behavior
This is what our one-to-one online interviews with consumers who use AI for shopping reveal, as highlighted in our “How America Shops® With AI” report:
Brands that appear in free AI tools have an advantage. The main reason shoppers use AI, across the board, is because they think it’s efficient, effective and objective. In short, a good value. And shoppers find that free AI tools will do the trick; no reason to upgrade to paid services.
Shoppers seek solution-driven wording. Shoppers told us they’d like objective AI tools, such as Gemini and ChatGPT, to provide goal-oriented (agentic) feedback and act more as personal assistants than personal shoppers, providing advice, direction and recommendations.
AI makes it easy to spend more some shoppers say. Because AI makes it easier for shoppers to find what they want, quickly, they spend more money on AI-suggested goods. Shoppers told us they visit more stores and sites, and have spent more, when using AI – from 10 percent overall to up to 300 percent in key categories.
Advertising on AI tools is expected but not liked. Our survey shoppers also said they won’t be surprised when ads pop up in their AI search results. However, shoppers won’t be happy, will question the objectivity of the search, and likely avoid them.
Underscoring all of these preferences is one significant finding from our research: Shoppers are cautious to allow AI agents to make purchases for them or to buy products through AI platforms. They still prefer to go to the final destination (whether online or in-store) and do it themselves.
Do we need to make this more clear that they’re looking for advice, direction, and recommendations and not for AI to make the purchase for them?
Retailers, Brands: Our Research Can Get You in Front of AI
The good news for big and buzzy brands (and small ones): AI search patterns can weigh in your favor when it comes to getting in front of shoppers.
Shopper-friendly guidelines for getting AI brand recommendation:
Shoppers like using AI because it feels impartial and objective, so companies using AI tools should project impartiality while fitting smoothly into shopper browsing habits. Think of how to flow the brand conversation into everyday life activities (such as travel and recreation needs), not just during shopping and browsing.
Brands mentioned on at least four third-party platforms are 2.8 times more likely to be referenced by ChatGPT, according to research by Digital Bloom. These platforms include Wikidata, first-person review sites such as Amazon and Reddit, and social media platforms, where influencers and brands promote.
Slogans work with AI algorithms as well as with consumers. Wherever a product is mentioned online, brands and retailers should keep the wording surrounding the brand name consistent, so the AI training model recognizes it (aim for conversational over search engine optimization). This applies to company sites, public relations releases and third-party platforms.
Brands would do well to optimize the full path to purchase, beyond simply gaining shopper awareness. Those that clearly align their product information with specific consumer needs and moments should have better luck appearing in AI-sourced recommendations, Supermarket News suggests. Our own How America Shops® data reinforces this.
Retailers that invest in private label (store-branded) products should not rely on price alone when distinguishing their portfolio mix. Thanks to AI’s influence on shopper choice, what is decided as “good, better or best” can easily be based on recognition, not the cost of the product. The above practices can inform this strategy.