AI-Powered Search Emerges As A Defining Force Shaping The Future Of The $595bn Global E-Commerce Market

Image generated using ChatGPT on 27 January 2026, in response to the prompt: "AI-powered search in e-commerce"

According to the data analytics company's Voice of the Consumer: Lifestyles Survey 2025, over half of consumers use GenAI tools such as ChatGPT, Google Gemini and Perplexity for information and recommendations.

Citing the latest findings on e-commerce from Euromonitor International’s Passport knowledge hub, Rabia Yasmeen, global insight manager for e-commerce at Euromonitor International, said: “Unlike earlier evolutions such as social commerce or livestreaming, AI-powered search is rewiring how consumers discover brands, evaluate choices and make purchasing decisions online.”

A shifting visibility landscape powered by AI

This shift rewrites the rules of visibility, moving from share of views to share of conversations. AI-driven discovery is redefining how influence, trust and competitiveness are built online, with an impact on the global e-commerce market, which is projected to surpass $595bn by 2028.

An analysis of more than 8,700 brands selling online in the US skin care category shows that up to half of existing brands are at risk of a gradual loss of relevance as meaningful consumer attention moves towards AI-driven discovery.

Simultaneously, AI is creating opportunities for new winners to emerge.

Yasmeen explained: “In traditional search, strong brands could rely on SEO, paid search and retail media to secure prominent placement. In AI-generated answers, there is no guaranteed slot, even for market leaders.”

Faster decisions, shorter journeys

Traditionally, shoppers moved through multiple stages: search, browse category pages, read reviews, compare alternatives, then add to basket. In AI-mediated journeys, much of this is collapsed into a single interaction.

"The interaction has changed from typing keywords and scrolling through listed products to a conversational platform asking questions in natural language and expecting a precise, context-aware answer," concludes Yasmeen.