Why does generative AI for search in retail matter right now?

Search is an integral part of the customer journey—and genAI is a potential game changer. Nearly 40% of online multibrand retail shoppers typically discover new brands and products by searching on websites and apps, per our June 2024 survey. Consumers rely more on search than on browsing a retailer’s homepage, filtering by product category, or looking at sale and discount pages. Retailers that offer an enhanced search experience can stand out against their competitors.

Online shopping is one of the most viable use cases for consumer-facing genAI. The technology isn’t yet widespread, but 41% of US consumers have expressed interest in AI-powered search engines for online shopping, per Botify’s February 2024 survey conducted with Dynata. This is a considerably higher level of interest than in other common use cases for search. It remains to be seen whether genAI search can improve the shopping experience, which largely depends on how well the technology functions. But if it does prove valuable, consumer adoption is likely to ramp up quickly.

Retailers are racing to add genAI features, but effective implementation is more critical than speed. GenAI is developing quickly, and retailers are facing pressure to bring these tools to market. But the goal for retailers should not be launching first; rather, it should be to launch a tool that shoppers actually use at scale. Retailers need to act with prudence and intent when deciding which genAI tools to invest in and when to roll them out.

There is stiff competition—not just among major retailers but also among Big Tech. Google, Meta, and other heavyweights have deep pockets to invest in genAI, and their platforms are also competing for shoppers’ attention.

Read the full report, Generative AI for Search in Retail.