How will AI-led e-commerce affect small businesses?
Briefly

How will AI-led e-commerce affect small businesses?
""Anybody who says that they know how to optimize for an answer on ChatGPT is probably feeding you some, you know, kind of snake oil,""
""Nobody knows how the ChatGPT answer engine works, or where it's pulling its information from. It's a black box,""
""There has been, historically, this area of marketing spend called Search Engine Optimization, also known as SEO. And now I hear that more companies are investing in something called AEO, which is answer engine optimization,""
AI chatbot adoption is accelerating and will enable tasks like local recommendations and direct purchases through conversational interfaces. Large Language Models train on vast amounts of human-generated content, including reviews and forum posts, to generate answers. The opaque nature of LLM answer engines creates uncertainty about how answers are sourced and ranked. Smaller brands face a visibility challenge because online chatter about them is limited compared with larger retailers. Some companies are beginning to prepare by shifting marketing strategies toward answer engine optimization while traditional search and existing traffic channels remain important.
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