AI Search Poised to Revolutionize $595 Billion E-commerce Market by 2028, Euromonitor Reports
Artificial intelligence is set to fundamentally alter the e-commerce landscape, with AI-powered search tools predicted to reshape the global market, projected to exceed $595 billion by 2028. This shift signifies a move away from traditional search engine optimization and paid advertising towards conversational AI platforms that offer direct, personalized recommendations.
Key Takeaways
- Generative AI tools like ChatGPT and Google Gemini are increasingly used by consumers for product discovery and recommendations.
- AI-driven search is changing how brands gain visibility, shifting focus from "share of views" to "share of conversations."
- Existing brands face a risk of losing relevance as consumer attention migrates to AI-powered discovery platforms.
- AI creates new opportunities for emerging brands to gain traction without relying on traditional SEO or paid advertising.
- Consumer purchasing journeys are becoming shorter and more direct due to AI's ability to provide precise, context-aware answers.
The AI-Driven Shift in Consumer Discovery
Euromonitor International's latest research indicates that generative AI is rapidly becoming a mainstream tool for consumers seeking information and product recommendations. The "Voice of the Consumer: Lifestyles Survey 2025" found that over half of consumers are already utilizing AI platforms such as ChatGPT, Google Gemini, and Perplexity for these purposes.
Rabia Yasmeen, global insight manager for e-commerce at Euromonitor International, highlighted that AI-powered search is fundamentally changing how consumers interact with online retail. Unlike previous e-commerce evolutions like social commerce or livestreaming, AI search is rewiring the entire process of brand discovery, choice evaluation, and purchasing decisions.
A New Visibility Landscape
This transformation is creating a new paradigm for online visibility. The focus is shifting from traditional metrics like "share of views" to "share of conversations." AI-driven discovery is redefining how influence, trust, and competitiveness are established online. Euromonitor's analysis of over 8,700 brands in the U.S. skincare category revealed that up to half of existing brands could face a gradual decline in relevance as consumer attention increasingly gravitates towards AI-powered discovery methods.
Conversely, AI is also paving the way for new market entrants. Yasmeen noted that in the era of AI-generated answers, there are no guaranteed placements, even for established market leaders, unlike the traditional reliance on SEO, paid search, and retail media.
Streamlined Shopping Journeys
Traditionally, online shopping involved multiple steps: searching, browsing category pages, reading reviews, comparing options, and finally adding items to the cart. AI-mediated journeys are collapsing these stages into a single, more direct interaction. Yasmeen explained that the user experience has evolved from typing keywords and scrolling through lists to engaging in natural language conversations with AI platforms that provide precise and context-aware responses, significantly shortening the path to purchase.