"A fundamental shift in search behavior is underway, and many e-commerce executives are missing it entirely. While brands continue optimizing for Google's algorithms, 44% of consumers in a McKinsey survey now say AI-powered search is their primary and preferred source of insight, topping traditional search engines. The transition is happening faster than anyone predicted. What industry analysts projected would take five years is unfolding in 18 months. McKinsey projects that by 2028, $750 billion in revenue will funnel through AI-powered search."
"When today's shoppers ask, "What's the best espresso machine under $500?" many are turning to ChatGPT, Claude and Perplexity instead of Google. (Disclosure: I'm an investor in Anthropic and OpenAI.) AI platforms don't usually return 10 blue links. They deliver one synthesized answer, often without requiring a single click to a merchant's website. For e-commerce brands not optimized for this new reality, the consequences can be stark: It's not that you're ranking poorly. You simply don't exist in the conversation."
Search behavior has shifted toward AI-powered tools, with 44% of consumers preferring AI search over traditional engines. Adoption accelerated far faster than predicted, compressing a projected five-year change into 18 months, and McKinsey forecasts $750 billion in revenue through AI-powered search by 2028. AI platforms synthesize multiple sources into a single cited answer and often eliminate the need to click through to merchant sites. Brands that are not cited by AI capture no value and risk structural invisibility to a generation of customers. Generative AI engine optimization aims to make brands the authoritative sources that AI platforms cite.
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