Lightspeed Commerce CEO: our study analyzed half a million AI shopping responses and revealed who gets to compete
For decades, the internet has promised to level the playing field for retailers. Is AI taking that away?
A new study by Vaer AI and Lightspeed Commerce revealed that larger retailers have an advantage in AI-generated shopping recommendations, potentially undermining independent businesses' ability to compete. When ChatGPT included retailer names in its web searches, 97% were large or mid-sized chains, while small and local retailers only accounted for 1-4%.
Despite independent retailers investing in their online presence, they still faced challenges when AI decided which businesses to recommend. The gap widened as shoppers moved closer to making a purchase, with small retailers' share of top recommendations falling from around 30% to just 10%, while larger retailers' share rose from roughly 40% to 60%.
Consumers often desire to support local businesses, but AI may not surface them unless they specify "independent" in their search prompts. This discrepancy between consumer preferences and AI's recommendations highlights the need for consumers to be more explicit about their values when using AI shopping tools.
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