Stat: AI’s impact on traditional search is already impacting ad spend

US – As AI agents begin making purchases on behalf of consumers, retailers must redesign websites and rethink advertising strategies to remain visible and competitive in an AI-first retail landscape. According to Emarketer, spend on traditional search ads is expected to slow, decreasing from 11% in 2025 to 4.9% in 2029.

Retailers are racing to future-proof their online presence as AI shopping agents increasingly influence consumer purchases. Developed by companies including OpenAI and Google, these tools are now capable of browsing sites, adding items to carts and completing transactions. However, they interpret websites very differently from human users. Interactive features like image carousels or JavaScript-based menus – common in fashion e-commerce – are often invisible to AI, putting many brands at risk of being overlooked.

This shift is prompting a new wave of digital optimisation, moving beyond traditional SEO to generative engine optimisation (GEO) and answer engine optimisation (AEO). Structured product feeds, comprehensive metadata and robust online reviews are now critical for capturing AI’s attention. 

In our analysis of SXSW London 2025: The Pursuit of AI Optimism, we highlighted how marketers are already diverting advertising budgets away from traditional search to optimise for large language model visibility.