Generative AI in Graphic Detail: How AI Is Changing Search and Advertising
AI agents have moved beyond experiments and are becoming essential in how people search, shop, and engage online. Major platforms like Google, OpenAI, and Perplexity are launching AI tools that are starting to reshape the advertising space. This shift could alter consumer behavior and how marketers approach digital campaigns.
Yet, many marketers remain cautious. A Gartner survey of over 400 marketing leaders found that 27% of CMOs said their teams have little to no generative AI adoption. The technology is still in its early stages, so a clear impact is forthcoming. Gartner analyst Noam Dorros advises marketers to focus on current consumer behaviors instead of chasing uncertain future trends. Having a solid foundation in customer understanding will make adapting to changes easier.
AI Is Changing How People Access Information Online
AI is gradually shifting the way people find information. Google's global search market share dropped to 89.65% in April—its lowest since 2013. In the U.S., Google holds 86.71%, with Bing, Yahoo, and DuckDuckGo trailing. Meanwhile, AI-powered search tools are gaining traction. Google’s AI Overviews feature attracts 1.5 billion monthly users. Startups like Perplexity saw monthly searches jump from 2.5 million in January to 20 million by December. ChatGPT processes an estimated 37.5 million search-like queries daily.
As AI search grows, ad exposure during the consumer journey is declining. An eMarketer report estimates drops of 38% during discovery, 47% during consideration, and 30% at conversion stages. Marketers are shifting focus from paid ads to optimizing AI-generated content, product feeds, and direct AI agent integrations. The most likely outcome is AI agents guiding product research, increasing awareness but potentially reducing consideration and leaving conversions unchanged. A more disruptive scenario would see major drops in product consideration and conversion.
Microsoft is experimenting with new ad formats within chat platforms. In March, it introduced AI-powered ad tools via its Copilot platform, targeting sectors like retail, gaming, travel, financial services, and automotive. Regarding AI-assisted purchases, a recent eMarketer study found that 66% of U.S. consumers wouldn’t allow AI to buy on their behalf. However, most would let AI secure high-demand items, monitor prices, or handle product maintenance.
Powerful AI Agents Are on the Horizon
AI agents are evolving from simple chatbots into autonomous tools capable of complex tasks like browsing and shopping. Recent launches include Google’s Mariner, OpenAI’s Operator, Amazon’s Nova Act, and Perplexity’s Comet (expected soon). Enders Analysis reports that OpenAI’s deep research agents doubled their success in tough benchmarks by using web browsing and coding capabilities.
These AI agents could become key players in marketing by reshaping consumer interactions and challenging traditional advertising models. A Bain & Company report shows that 80% of U.S. consumers already use AI-generated content for at least 40% of their searches. Trust in AI varies by context: 56% trust AI for learning, 51% for shopping, but trust drops sharply for health, financial advice, news, legal matters, and major purchases.
Some companies are moving forward with AI-managed purchases. Visa’s “Intelligent Commerce” and Mastercard’s “Agent Pay” are examples. ChatGPT and Shopify recently launched in-chat shopping features that integrate AI agents into the buying process.
A Blueprint for Chatbots
A recent Wharton report offers practical advice for marketers using AI chatbots. Drawing from extensive research, it highlights how chatbots can personalize recommendations and build trust. Key findings include:
- People are up to 2.6 times more likely to accept a price increase when it comes from an AI versus a human.
- Customers are 11.2% less likely to engage with human-like chatbots when buying embarrassing products compared to machine-like bots.
- Human-like bots tend to boost engagement, while machine-like bots handle complaints more effectively.
- Ethical concerns should remain a priority when deploying chatbots.
- Subtle flattery works well, especially from less humanlike bots, but obvious flattery in sales situations can backfire.
- People prefer hearing good news from humans but respond similarly to bad news whether from humans or bots. Neutral bots can soften negative messages.
These insights can help marketers decide when to use human-like or machine-like bots to enhance customer experience and trust.
For marketers looking to build skills in AI and marketing technologies, exploring targeted training can be valuable. Resources like Complete AI Training's latest AI courses offer practical pathways to stay current with AI-driven marketing tools.
Your membership also unlocks:
