How generative AI will forever change e-commerce

Digitalization has rapidly accelerated the evolution of shopping. 

Starting in the 1980s, retail has transformed from brick-and-mortar to websites with point and clicks to mobile apps with taps and swipes; now generative AI prompting is expected to change the way we shop.

To be more precise, generative AI is set to revolutionize the way consumers search for products online. Traditional search results often overwhelm users with an abundance of irrelevant results, forcing them to sift through pages to find what they need. In contrast, generative AI-powered search results promise a more intuitive and efficient experience. 

By understanding the context and nuances of user queries, these advanced search solutions can deliver highly targeted and personalized results, drastically reducing search time and enhancing user satisfaction.

For example, a user looking for "sustainable running shoes for marathon training" will receive a curated list of options that match their specific needs, rather than a broad range of running shoes. This precision not only improves the shopping experience but also increases the likelihood of conversion, as users are presented with exactly what they are looking for. 

These new search experiences provide users with summarized insights, personalized recommendations, and a seamless integration of various data points, ensuring that search results are not just relevant, but also contextually rich.

Hyperscalers have already seen the writing on the wall. Tech companies with both search engines and generative AI offerings are hard at work incorporating generative AI, prompting solutions within their search interfaces to ensure they edge ahead in the battle of the browsers. So how can brands and retailers follow suit and adjust their e-commerce strategies in light of these developments?

Online shopping in a generative AI world
Many CPG and retail companies are not taking an aggressive stance on generative AI search interfaces. Although 70% of companies across industries, including CPG and retail, state that generative search solutions are pivotal to their business, it’s increasingly apparent that brands and retailers are unsure how to best position themselves in a world where browsers will be dictated by generative AI prompting. Moreover, enabling their own search interfaces on their websites and mobile apps with generative AI is a key challenge.
 

There are just a handful of digital native brands and retailers that have the necessary talent, technology, and C-suite support to adapt their e-commerce strategies and adopt GenAI search solutions. 

These companies are often ahead of the curve because they know the right questions to ask, and they actively find the answers. How do I make sure my products and content come up in third-party generative AI browser interface responses? Will I be able to utilize traditional search engine ads when advanced generative AI  interfaces come on the scene? How does my website’s search capabilities stack up against competitors? Do I need to deploy a generative AI search interface? Should I partner with a generative AI vendor?

To prove this point, just look at digital native companies in the hospitality and travel sector. One travel services enterprise known for its search engine has recently integrated generative models into their browser interface. Their users can now share highly specific search criteria, including screenshots of airline tickets and travel agendas, within the site’s browser. The engine then scours the web and shows the most optimal results.

Although we’re comparing two different sectors, it’s clear that generative AI tools can yield greater search results—and business results as well. CPG and retail enterprises need to get the right products in front of the right people at the right time, and generative AI-enabled search interfaces can do just that.

Initiating a generative AI interface approach
Whether or not you’re a savvy digital native company, the tactics to initiate the reconfiguration of your e-commerce strategy centered around generative search interfaces are largely the same. 

Every brand and retailer will need to vastly improve their data management practices. Like any AI model, generative AI prompting solutions rely on the quality and quantity of your data. Most CPG and retail enterprises struggle with siloed data across channels—from in-store and email to app and website. 

To overcome this barrier, many companies should enhance their use of customer data platforms by integrating them with cloud-based solutions, creating a unified, comprehensive data hub for all their information.

Content is also pivotal for the future of generative AI-enhanced search. Retailers and brands may have to overhaul their web content to meet the unique parameters for generative AI models. This will mean adapting content for structure and clarity like breaking up text into shorter paragraphs to ensure it can be more easily scanned, optimizing visual content, utilizing targeted words and phrases, and developing content that addresses consumers’ niche search queries.

Talent is also key when it comes to any generative AI initiative. Most CPG and retail companies will need to invest in upskilling and reskilling their workforce to ensure they are knowledgeable in generative AI prompting. 

Beyond the perhaps obvious teams like UI/UX and software engineering, marketing and sales divisions must also be competent in prompting and understand how they can position their online presence in a generative AI world.

Brands and retailers face fierce competition whether online or in stores. They are fighting for customer engagement—and sales—everyday. If the evolution of consumer product and retail shopping has taught us anything, it’s that the successful companies are the ones that strategically embrace technological advancements.

Enterprises cannot overlook generative AI and they especially should not overlook generative AI-enabled search interfaces. These advanced browsers will enhance customer engagement and loyalty and drive sales.

Editor's Note: See more content related to Capgemini here.