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Back to WorkResearch Report | 2025

The Future of Commerce: How AI Is Reshaping Brand Discovery

A new playbook for brand visibility, customer acquisition, and competitive positioning in the age of AI-powered shopping.

Prepared by Devinci Partners2025
$68BGMV via AI funnels
800%Growth in AI referrals (H1 2025)
60%Consumers using AI to shop
5xLonger queries vs. Google
Contents

Report Overview

001
Executive SummaryThe structural shift in consumer shopping behavior
002
The AI Shopping ShiftHow consumer behavior is changing
003
New Discovery ChannelsWhere shoppers are going
004
The Sustainability AngleWhy purpose-driven brands win in AI
005
Threats to BrandsData, revenue, and relationship loss
006
How Brands Can RespondOn-site AI + off-site discovery
007
Implications for InvestorsWhat this means for PE and growth equity
001 / Executive Summary

Consumer shopping behavior is undergoing a structural shift.

800%growth in AI referral traffic (H1 2025)
41%of shoppers use natural language to search
$68Bin GMV transacting via AI-enabled funnels
Behavioral ChangeImplications for Brands
Shoppers use full-sentence, 23-word queriesProduct discovery must support natural language, not just filters and categories
Discovery is moving from Google to AI platforms (ChatGPT, AI Overviews)Brand visibility depends on structured, LLM-friendly content
Consumers are delegating purchase decisions to AIAI is becoming the new point of influence in the path to purchase

Brands that embed AI-powered shopping experiences see up to 4x higher conversion.

002 / The AI Shopping Shift

How Online Shopping Is Changing

For two decades, online shopping followed the same pattern: type a few keywords into a search engine, wade through pages of results, open multiple tabs, read reviews, compare prices, and eventually make a decision. The process was time-consuming, cognitively taxing, and often unsatisfying. AI is collapsing that entire journey into a single conversation.

Traditional Path
1Search Google with a short keyword
2Skim through 10+ results
3Open multiple product pages
4Read dozens of reviews
5Compare prices across tabs
6Go back to Google
7Repeat until overwhelmed
Average time: 15-30 minutes per purchase decision
AI-Powered Path

Ask AI a specific question, get a personalized recommendation in 30 seconds.

Average time: under 1 minute

AI relieves the mental burden of choosing by tailoring recommendations to each shopper's unique context.

23 wordsAverage AI shopping query
vs.
4 wordsAverage Google search
003 / New Discovery Channels

Where Shoppers Are Going

Google Organic
20-25% of traffic
AI Overviews intercepting up to 60%
Google Paid
15-20% of traffic
AI tools skip paid ads, lowering SEM ROI
Direct / On-site
40-45% of traffic
Consumers expect AI experiences or they bounce

50%+ of site traffic is shifting to AI funnels. Brands must show up in AI results and offer AI-native on-site discovery.

004 / The Sustainability Angle

Why Purpose-Driven Brands Win in AI Discovery

As consumers increasingly ask AI for shopping recommendations using natural language, sustainability criteria are showing up in queries at unprecedented rates. Phrases like "eco-friendly," "sustainable," and "ethically sourced" now appear in over 30% of AI-mediated product searches. This creates a new competitive dynamic where genuine sustainability credentials translate directly into AI visibility.

AI surfaces values-aligned brands

Large language models synthesize brand reputation, certifications, and third-party ratings when generating recommendations. Brands with genuine sustainability credentials consistently rank higher in AI-curated results because the models treat verified claims as positive quality signals.

Transparency becomes discoverable

Supply chain transparency, carbon footprint disclosures, and certifications like B Corp or Fair Trade are now structured data that AI can parse. Brands that publish this information in machine-readable formats gain a persistent advantage in AI-mediated discovery.

Greenwashing gets filtered out

AI cross-references marketing claims against independent sources, press coverage, and regulatory filings. Brands with inconsistent or unsubstantiated sustainability messaging are penalized in recommendations, creating a natural accountability mechanism.

73%of Gen Z consumers say sustainability influences purchase decisions

Brands with verifiable sustainability credentials are 2-3x more likely to be recommended by AI shopping tools.

005 / Threats to Brands

What Brands Stand to Lose

Brands lose data

Shoppers research in AI, bypassing your site and leaving no tracking or insights.

$

Brands lose revenue

AI recommends competitors when you are not listed, costing you the sale.

Brands lose the relationship

AI becomes the trusted advisor, not your brand.

006 / How Brands Can Respond

How Brands Can Win in the AI Shopping Era

On-Site AI Experience

Embed AI-powered product discovery directly into your commerce experience. Replace static category pages and keyword search with conversational, context-aware recommendations. Brands that deploy on-site AI see up to 4x higher conversion rates because shoppers find what they need faster, with less friction and fewer abandoned sessions.

Off-Site AI Discovery

Optimize your brand and product data for AI discoverability across ChatGPT, Google AI Overviews, Perplexity, and other LLM-powered platforms. Structure product information, reviews, and content in formats that AI can parse and recommend. Brands that invest in off-site AI optimization see 2-3x more referral traffic from AI channels.

Winning brands will master both: AI-powered sites + AI-driven discovery.

007 / Implications for Investors

What This Means for PE and Growth Equity

AI-native commerce infrastructure

Companies building the picks-and-shovels for AI shopping (product data optimization, content structuring, AI search infrastructure) represent a growing TAM as every brand needs these capabilities.

Brand enablement platforms

Tools that help brands optimize for AI discovery are an emerging category with strong tailwinds. The market is early, fragmented, and ripe for consolidation.

Sustainability as moat

Brands with verifiable sustainability data have a structural advantage in AI-mediated commerce. This creates durable competitive positioning that compounds over time.

Consumer data ownership

As AI intermediates the purchase, companies that maintain direct consumer relationships command premium valuations. First-party data becomes even more valuable when third-party discovery shifts to AI.

4x conversionafter embedding AI shopping
+15% in salesafter AI-powered experiences
2-4x more referralsafter optimizing for AI search

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Prepared by Dev Devnani, Devinci Partners
2025 Devinci Partners. All rights reserved.