How Will Generative AI Disrupt Retail Marketing?

As generative artificial intelligence tools like ChatGPT rapidly evolve, companies across the spectrum are adapting as they try to capitalize on the technology’s potential. This potential ranges from disruptions to marketing efforts, search and consumer behavior to the impacts on workforces, workflows and more. Brand marketers for retailers have been especially focused on following the trends and taking advantage of any generative AI tools at their disposal, especially during a year they've been tasked with doing more with less resources.

The usual customer search for a product or service entails some research online, reading reviews, maybe asking their networks, and comparing features and pricing between competitors. As the push for on-demand everything has taken control of the e-commerce experience, we’re now being asked what if a chatbot could scan the internet to find this information for you — more quickly and more accurately than you would be able to do yourself?

As large language models advance and people start using generative AI tools more as recommendation engines and even shopping assistants, retail brand marketing will undergo a sea change. The challenge will shift from capturing a human’s attention with imagery, story and emotion to showing up on the radar of a bot, a much more technical undertaking.

This disruption could reach as far as influencer marketing, where consumers will now be able to weigh the recommendations of celebrities they admire against the personalized suggestions of an AI tool that can consider however much information the consumer wants to feed it in a prompt. Could the AI chatbot become the new “influencer”?

Let’s consider how large language models will shape consumers’ online shopping habits, what this change will mean for brand storytelling, and how retail marketers should prepare for AI’s impact on the shopping experience.

A Procurement Team for Every Shopper

Savvy online shoppers have accustomed themselves to scouring different sites for the best deals and products. As chatbot technology advances, however, the aggregation of that information could mean fewer shoppers visiting brand websites while considering purchases or researching options.

For example, say you were looking for a pair of running shoes. Traditionally, brand affinity might draw you straight to the familiar websites of Nike, Reebok, and Adidas. But if you could ask a chatbot for your exact needs, like the best running shoe for narrow feet with good ankle support for running on rocky terrain and breathable outsoles, you might discover a whole new brand entirely — and find your dream shoe.

In this way, querying large language models for the ideal retail products will become similar to the process of submitting a request for proposal (RFP), where the bot goes out and finds the user the best deal.

With the adoption of generative AI, individual shoppers will begin to act more like procurement departments, using tools to survey market options and find the best products that fit their specific needs. While this will offer consumers speed and scale in finding suitable items, it will also alter brand marketing. When a bot can surface the best options in a second, where do brand stories and brand loyalty come into play?

The Shifting Role of Brand Stories

While the adoption of generative AI in e-commerce could offer shoppers a lot of benefits, it also risks disconnecting customers from brand narratives. For marketers, this new era calls for rigorous testing and experimenting to determine the evolving effects of chatbots on web traffic, customer acquisition, and shopping habits.

While the efficacy of brand stories in certain channels or applications might be eclipsed by the power of shopping-assistant chatbots, brand storytelling will remain crucial for retaining loyal audiences, reaching new segments, and staying top of mind. Inspiring, thought-provoking narratives delivered in immersive channels like digital out of home and connected TV will still prove effective in driving awareness and purchases.

However, run-of-the-mill brand marketing won’t pass muster in a digital landscape where shoppers turn to chatbots to find the right products. If a consumer never makes it to your website, how will they experience your brand messaging? Brand marketing will be forced to evolve to be more holistic, top of funnel, and identity focused, drawing consumers in with powerful ideas and inspiring them to go straight to brand properties.

The Future of Marketing to Bots

In addition to impacting brand marketing, generative AI also introduces a whole new type of advertising for brands to consider. If more shoppers turn to chatbots for help finding the perfect products, the new challenge for brands becomes showing up in the answers that the chatbots provide.

How do you market to bots? This topic will grow in conversation in coming years as more and more consumers use generative AI to expedite the retail process and brands look to retain their slice of the pie. As opposed to brand storytelling, which will be forced to become more emotional and resonant to cut through the noise of AI recommendations, marketing to chatbots is very technical.

Unlike humans, these tools can’t be wooed by a story or brand name. Bots will become their own audience segment that marketers will have to optimize around to ensure their products are highly discoverable to tools and the shoppers who use them.

But it’s not just about figuring out how to market to bots. Marketers must also commit themselves to understanding and capitalizing on the potential new flow of customers coming to the brand through a chatbot, introducing a new type of conversion and representing a fresh way to reach untapped audiences.

With the right measurement and analytics, retail brands can leverage the dawn of large language models and chatbots as an opportunity to connect with consumers in innovative ways, reinvigorate brand storytelling, establish new revenue streams, and grow their customer base. Generative AI may usher in a new phase of retail marketing, but if marketers are proactive, it could be a more fruitful one.

Brian Quinn is the president and general manager at AppsFlyer, a global leader in marketing measurement, analytics, and engagement.