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AI search to shape $595b retail ecommerce by 2028: Euromonitor

Euromonitor International reports that generative AI platforms are increasingly being used as discovery tools in digital commerce, according to its Voice of the Consumer: Lifestyles Survey 2025.

Over half of consumers surveyed use AI tools like ChatGPT, Google Gemini, and Perplexity for information and recommendations.

Euromonitor’s analysis suggests that AI-powered search is changing how consumers find brands, evaluate options, and make online purchases, shifting discovery from traditional search to conversational AI.

The global ecommerce market is expected to exceed US$595 billion by 2028, with AI-driven discovery potentially impacting brand relevance and competitiveness.

A review of over 8,700 US skincare brands indicates that many existing brands risk losing relevance as consumer attention moves toward AI-based discovery.

The report notes that AI-mediated shopping simplifies decision-making, reducing multiple steps into a conversational interaction where consumers ask questions in natural language.

🔗 Source: Euromonitor

🧠 Food for thought

Implications, context, and why it matters.

The commercial impact of AI recommendations is still not well quantified

  • Over half of consumers are using GenAI tools such as ChatGPT, Google Gemini and Perplexity for information and recommendations, per Euromonitor International’s Voice of the Consumer: Lifestyles Survey 2025. The share of online product discovery and e-commerce sales tied directly to these tools has not been quantified.
  • AI search traffic has been measured at 527% year over year 1. Ads were also found in about 40% of AI Overviews, Google’s AI-generated search summaries, for commercial queries by November 2025 2. Conversion rates from these touchpoints have not been provided in a comprehensive way.
  • The financial exposure for the US skin care brands described as at risk of losing relevance has not been sized. The timeline for that loss has also not been pinned down, which makes planning harder.

New analytics tools aim to measure the emerging ‘answer engine’ funnel

  • E-commerce teams and investors can use this measurement gap to build analytics for the “answer engine” economy, where AI-generated answers steer buying choices.
  • Platforms can help retailers and direct-to-consumer (DTC) brands by tracking signals beyond search engine optimization (SEO), including “Share of Model” plus citation frequency across AI services 2.
  • Tools that link AI visibility with visits or sales could support spending decisions, since only about 19% of marketers plan a specific SEO strategy for generative AI search 3.

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