Generative AI is reshaping product discovery. This report examines shopper motivations, AI’s role in conversion, and the industries most exposed to its impact. It introduces AI Choice Framework and AI Visibility Gap to show how comparison, reassurance, AI-generated recommendations shape brand visibility. The report identifies emerging brand archetypes, showing that algorithmic authority increasingly favours brands with clear, explainable propositions reinforced across a broad digital ecosystem.
Delivery
This report comes in PPT.
Key Findings
Discovery is shifting from open search to mediated choice
Generative AI is transforming product discovery from a process of navigating search results to receiving curated recommendations. Rather than comparing dozens of products themselves, consumers increasingly describe a need and rely on AI systems such as ChatGPT, Google Gemini and retailer AI assistants which interpret intent, compare alternatives and recommend most suitable brands.
AI has disproportionate influence across categories and brands at the moment of intent
AI does not influence every purchase equally. Its impact is greatest in high-consideration categories where consumers seek comparison, explanation and reassurance. As AI concentrates recommendations among a small number of brands, visibility becomes increasingly scarce and therefore increasingly valuable, creating a new competitive landscape.
The AI Visibility Gap measures
The AI Visibility Gap compares a brand's presence in AI recommendations with its commercial position in e-commerce. It provides an early indicator of where algorithmic authority is strengthening ahead of commercial leadership, helping identify brands that are over- or under-performing in AI-mediated discovery.
Algorithmic authority is creating a new competitive elite
Only 8% of global skin care brands have measurable AI referral traffic. Increasingly, competitive advantage is determined not simply by being available online, but by being selected, explained and recommended by AI. Data shows that algorithmic authority is not built by brands independently, but by what the wider digital ecosystem consistently validates.
Brands must define their strategic priority based on their archetypes
There is no single path to AI visibility. Category behaviour determines its archetypes. In skin care, derm-science leaders build authority through clinical credibility, ingredient-first challengers through explainability, while luxury brands face new legibility challenges. Success depends on strengthening the capabilities aligning with each brand's AI archetype, rather than applying a universal strategy.
Why read this report?
Key findings
Discovery is shifting from open search to mediated choice
AI is small in traffic, but growth is outpacing traditional sources of referral
Shoppers are using Gen AI to gain clarity and confidence
Hence, AI has disproportionate influence at the moment of intent
The AI Choice Framework: How AI enters the shopper decision
Disruption varies by category and purchase situation
AI visibility and its measurement are immediate challenges for brands
Measuring the disconnect between AI discovery and e-commerce performance is key
From measurement to strategy: The AI-Commerce Matrix
AI visibility is highly concentrated, leaving most skin care brands unseen
Algorithmic authority is creating a new competitive elite - only 161 brands qualify
The AI elite resolves into five recurring archetypes
Five brand archetypes, five routes to AI visibility
AI leaderboard for skin care is led by Derm-Science Giants and AI-Native Challengers
CeraVe translated dermatologist trust into algorithmic authority
AI-Native Challengers represent the largest archetype within the AI elite
The Ordinary's ingredient-first communication creates AI-native visibility
While AI discovery is rewarding some brands, it is exposing new vulnerabilities for others
Luxury is becoming AI’s blind spot
The tale of two Asian brands: Same category, opposite AI outcomes
Brand-led content, third-party sources and the case of Amazon reviews
Strategic priorities of every brand archetype in skin care
Three structural risks faced by brands
What does it take for brands to show up in AI-driven discovery?
Five immediate priorities for brands in the AI era
Evolution of AI-led product discovery
AI visibility will increasingly matter for both customer acquisition and retention
Questions we are asking
What is an AI referral and how we track it?
List of markets for GenAI search study
Details of archetype: Breakdown
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!