AI is changing discovery. What does that mean for your business?

The way consumers find products and information is undergoing a significant transformation. While search engines, social media, and marketplaces like Amazon and eBay have historically driven discovery, AI-driven Large Language Models (LLMs) are now adding another layer to the ecosystem. A recent survey reveals that over 50% of online adults have utilized generative AI to find answers to their questions.

With LLMs, users can now ask questions and compare options through natural conversation, often before even visiting a website.

Traditional keyword-based search is being replaced by conversational AI interactions. Instead of typing a short query into a search engine, consumers can now ask more detailed questions, such as which products are suitable for marathon training, how specific shoes fit certain feet, how they compare to alternatives, and where to purchase them. This change impacts the role of search interfaces, as users increasingly rely on AI to narrow down options before deciding where to go next.

Consumers are leveraging AI tools for both informational (39%) and transactional (37%) purposes, accounting for more than three-quarters of generative AI usage. Moreover, AI is not merely acting as a neutral directory of options; 70% of LLM responses suggest a single brand as the primary recommendation. Consequently, people are receiving curated suggestions rather than having to sift through multiple results to compare themselves.

Interestingly, the influence of AI extends beyond discovery and impacts the formation of intent. Historically, businesses have relied on search queries, clicks, and browsing behavior to understand user searches. However, conversational AI introduces a new signal in the form of the questions people ask even before they know what to search for.

This context is often richer than simple keyword queries. For instance, a shopper comparing skincare ingredients, a traveler planning a family itinerary, or a business buyer evaluating software vendors all provide more context through their conversations.

While final transactions may still occur on retailer websites, apps, or physical stores, the research and decision-making process begins much earlier, inside an AI conversation. Typically, AI-influenced journeys reach their highest conversion point after five to six prompts, with 75-85% of those journeys converting within two weeks. AI helps consumers narrow choices, test assumptions, and build confidence before moving to the open web.

This shift in discovery dynamics presents important implications for organizations. Firstly, it may mean fewer direct visitors to their websites. However, the users who do arrive after an AI conversation are likely to have a clearer understanding of the product and a higher likelihood of making a purchase. Secondly, the nature of signals organizations can learn from changes.

Traditional search data is brief and transactional, while AI conversations are longer, more exploratory, and more emotive, revealing deeper insights into consumers' thought processes before they make a purchase.

One crucial aspect to consider is that different LLMs draw on different sources and weight information and signals differently. A brand that appears frequently in one LLM's output may barely register in another. This inconsistency poses challenges in interpreting AI-generated consumer insights. A more effective approach involves relying on real consumer behavior, directly observing what people ask, how they phrase their questions, and their underlying intentions.

When defining success in the AI landscape, organizations must broaden their approach beyond traditional metrics like search rankings, website traffic, and conversion rates. While these metrics remain important, they will no longer provide a complete picture of digital performance. To truly understand consumer intent and capitalize on the new discovery landscape, businesses must focus on acquiring a comprehensive dataset that captures the full range of consumer interactions across search, social media, marketplaces, and AI conversations.

By gaining a deeper understanding of consumer behavior and thought processes, organizations can position themselves to thrive in this evolving digital ecosystem.