Report Reveals AI Becomes the New Middleman in Shopping

Report Reveals AI Becomes the New Middleman in Shopping

Shoppers are no longer starting their buying journey on Google or brand websites. Instead, they are turning to AI to help them choose—and decide—on their next best purchase. More often than not, brands hardly get the chance to influence their decision.

According to Cordial’s latest report, Brands Battle for Attention as AI Redefines the Funnel, 30% of consumers regularly use AI agents such as ChatGPT, Perplexity, and Claude during their shopping process, often asking them for product recommendations, comparisons, or reviews. The shift is most pronounced among Millennials and Gen Z, with adoption rates 33% and 11% higher than the national average. Luxury shoppers, in particular, prefer an exceptionally personalised shopping experience powered by AI.

Despite this change in consumer behaviour, 47% of brands have minimal or no presence in these AI-driven touchpoints, and only 7% have developed a clear strategy for optimising their visibility.

Rob Garf, Head of Strategy and Insights at Cordial, said: “We’re in a fundamentally different marketing landscape than we were just months ago. Consumers are more connected and shopping is more fragmented. AI has upended the traditional funnel as consumers increasingly embrace personal agents to discover and purchase products. Brands must break into these walled gardens by optimising their data, AI, and channels for a seamless and personalised experience wherever a consumer chooses to engage.”

Stuck in Silos

While marketing leaders recognise the growing influence of AI agents, most are still focused on adding more traditional channels. Ninety percent of organisations plan to expand the number of marketing channels over the next three years, a move that risks adding volume without improving cut-through.

The study also finds that personalisation remains limited. Executives estimate that only 22% of the messages they send are genuinely tailored to the recipient.

Fragmented technology is a major obstacle to delivering personalised experiences. Most organisations operate more than five separate marketing applications, and 60% have low confidence in their customer data. Only 3% of brands can use behavioural data in real time to predict what a customer might want next, a capability closely linked to higher performance in the report.

Those with fully integrated data, AI, and channels are able to personalise at scale and consistently see stronger results. Others, working in silos with outdated processes, face stagnant engagement.