There is a new way in which artificial intelligence is influencing our customers: as a means of researching products they’re interested in buying. Google has long been the standard search engine, and therefore a key way in which consumers found out about our businesses. But artificial intelligence is starting to change that.

AI agents are algorithms empowered to take action on a user’s behalf, according to an online article in the Harvard Business Review. The authors make the startling observation that “Enough consumers are skipping Google and searching using ChatGPT, an AI agent that interprets questions and synthesizes search results, that some experts estimate it could replace Google in four years.”

Perplexity, which is one of the leading AI portals, uses AI to search the internet and gather insights from top-tier sources. When I asked it how Perplexity works, it replied that it “then distills this information into a clear, concise summary, delivering exactly what you need in an easy-to-understand, conversational tone.” It does not just rely on key words on web sites, but also accesses the content of articles and journals.

Perhaps one of the most interesting differences between a Google search and using an AI agent is the summary that it provides.  Consumers are frustrated by the sponsored content on Google that is at the top of search responses, requiring significant sifting in order to find a link to a site that isn’t a paid result.  Google is now offering an optional AI Overview, which aims to provide concise and helpful summaries of search results – undoubtedly in response to platforms such as Perplexity.

The Harvard Business Review article offers some interesting insights into the future of AI agents, including the fact that they can optimize searches to include “key factors that humans sometimes miss but still value.” It would be wonderful to have the metrics that it provides include whether a retailer mentioned in the search results are locally owned, and what the distance is to the store. “Local retailers that offer unique experiences may still hold an important place in the evolving retail environment,” the authors state, “if they can be surfaced by AI agents recognizing the value of shopping locally—something that will depend on their ability to to get noticed.”

Happy Retailing,
Carol “Orange” Schroeder