Is AI the Key to Meeting Consumers in Discovery?
Despite brands’ marketing teams doing their best to focus consumers’ attention with intentional campaigns and messaging, discovery is happening everywhere, in every activity, all at once – it’s always on. Though once inspired, research shows that with the right messaging and the right technology, a brand can break through to today’s tech-savvy consumer.
In its latest research report, Lily AI, the AI-powered product content optimization platform, aimed to better understand current consumer sentiment towards the search and discovery process of online shipping. Its research included a survey of more than 2,000 U.S. consumers who reported making at least 12 online purchases of clothing, shoes, accessories, home goods and/or beauty products in 2024. The respondents were ages 18 to 65 with a majority (66 percent) identifying as female.
More from WWD
“Retailers must meet customers where they are, and recognize the online shopping experience is evolving, especially with regards to where consumers are discovering and searching for products,” said Purva Gupta, cofounder and chief executive officer of Lily AI. “Online retailers and brands that recognize the direct relationship between digital commerce and digital marketing, and that swiftly adopt technologies to enhance product descriptions and optimize search and discovery experiences wherever they occur, will win in customer experience.”
As the company looked to understand consumer preferences for their fashion discovery, results were understandably varied. Online shopping continues to be preferred by most (66 percent) of shoppers who cited reasons including accessibility to stores, brands and products (62 percent), the ease of discovering new brands and products (52 percent) and, above all, convenience (80 percent).
Many consumers across all generations (69 percent) said the discovery process starts on Amazon with channel preferences starting to vary outside of the massive marketplace. While Gen Z prefers using social media for discovery (56 percent), Millennials said they prefer to browse big-box retail sites like Walmart and Target (46 percent) and Gen X prefers to use search engines like Google to discover new products (41 percent).
Unsurprisingly, social media platforms for discovery also varied across generations. TikTok is the social media channel of choice for Gen Z (54 percent), followed by Instagram (29 percent). Millennials prefer Instagram (39 percent) just slightly over TikTok (32 percent) and Gen X shared preference for TikTok, Instagram and Facebook fairly evenly.
At the same time, the authors of the report said that “social is for discovery, not search, not [yet] shopping.” And when it comes to search, 84 percent of consumers said that it takes up to six searches to find what they are looking for — a point of opportunity for retailers to improve how they find their products.
Consumers said that during the search process, they continue to find it difficult to find what they are looking for quickly, but they remain persistent. Sixty-five percent of shoppers said they are willing to conduct between four to nine searches before giving up with Gen X giving up the most quickly after just three searches. In contrast, Gen Z has the most patience.
With these challenges for the consumer in mind, AI has become many shoppers’ best friend. Forty percent of respondents said they have used one of the new AI-powered search engines when online shopping and “avid” were found to be especially early adopters with nearly 70 percent confiding that they “have used an AI-powered search engine when online shopping” compared to just 35 percent of “light shoppers.”
“This shift means brands must ensure their product content is optimized for AI discovery whether that’s with an incumbent like Google and Meta or one of the disruptor platforms,” Gupta said. “If they’re not prioritizing agent-friendly, AI-optimized content, they risk losing visibility in search results, reducing traffic, sales and ultimately market share, not to mention the fact that the consumer loses out, becomes frustrated and loyalty wanes. Investing in AI ensures brands stay both relevant and present where consumers are searching and shopping.”
With so much buzz around AI and how to properly implement it, Gupta told WWD that when introduced to brands and retailers she is often asked if AI drives meaningful results, results that their chief financial officer can believe in. “I always emphasize that this new generation of AI is not a futuristic vision — it’s a present-day reality driving tangible results and if you’re still questioning AI’s potential, you’re already behind the curve. This isn’t a time for a ‘wait-and-see approach or being a fast follower.”
In her position, Gupta explained that she has seen that “AI is rapidly transforming retail operations from the somewhat mundane tasks like item setup to the more strategic plays in marketing and e-commerce.” Moreover, she said “retailers who are embedding AI throughout their workflows are seeing significant benefits, whether that be by increasing ad impressions (ranges 2 to 18 percent), driving conversion (ranges 3 to 25 percent) or boosting sales (ranges 2 to 24 percent).
While there’s certainly hype surrounding AI, she said, its ability to drive real, measurable results is undeniable, and the speed at which these benefits can be realized can be surprising.
“This new generation of AI levels the playing field. It helps businesses of all sizes increase product visibility, improve search relevance and personalize marketing at scale,” Gupta said. “Retailers who embrace AI are better equipped to meet consumers where they are, ensuring the right products appear at the right time — driving discovery, connection and conversion.”
Best of WWD
Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
