Observed Signal · Oct 29, 2026 · Research Report · Source: Retail Dive · Impact: 3/5 · Sentiment: Neutral
Only 10% of consumers use AI for product discovery
A new report from AlixPartners reveals that only 10% of US consumers currently use AI for product discovery, despite widespread availability of AI tools. Adoption is higher among younger generations, with 14% of Gen Z and millennials starting their product search with AI, and among higher-income households, with nearly 70% of consumers earning $150,000+ considering AI shopping important, vs. 53% for those earning under $45,000. The report predicts a future uptick, particularly for commoditized goods and replenishment basics, while top-end markets remain brand-led. Retailers are advised to invest in structured product data, as AI agents rely on metadata rather than imagery or persuasive copy. Brands risk being sidelined if they fail to optimize for AI-driven discovery. Meanwhile, larger retailers like Target, Best Buy, Macy's, and The Home Depot are launching their own AI assistants to maintain customer relationships.
Highlights early-stage AI adoption in retail product discovery, with strategic implications for brands and retailers regarding metadata optimization and consumer relationships. Relevant to the MarTech/AdTech ecosystem as AI becomes a discovery channel.
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Key Takeaways & Evidence Grounding
- Only 10% of consumers begin product discovery with AI, according to AlixPartners' 2026 Consumer Sentiment Index.
- 14% of Gen Z and millennials start product search with AI.
- Nearly 70% of consumers earning $150,000+ consider AI shopping important, vs. 53% for those earning under $45,000.
- AlixPartners predicts an uptick in AI adoption for commoditized goods and replenishment basics.
- Large retailers like Target, Best Buy, Macy's, and The Home Depot are launching internal AI assistants.
Connected Companies & Entities
4 Entities mapped“Target is mentioned as one of the larger retailers launching its own internal AI assistant to maintain customer relationships.”
“Best Buy is mentioned as one of the larger retailers launching its own internal AI assistant.”
“Macy's is mentioned as one of the larger retailers launching its own internal AI assistant.”
“The Home Depot is mentioned as one of the larger retailers launching its own internal AI assistant.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
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Generative AI to Become New Discovery Layer in E-Commerce
A report by Similarweb indicates that generative AI is increasingly influencing online purchase decisions, appearing in over 11% of shopping journeys prior to transactions, up from under 5% two years ago. However, traditional search remains crucial, with 89% of AI-influenced journeys also using search engines. AI is primarily used in early stages for problem definition and product comparison, while search is relied upon for specific product checks. This creates challenges in attribution, as last-click models often misattribute AI-driven conversions to search or direct traffic. Retailers must now optimize for visibility across multiple digital layers, including AI-generated answers and on-platform shopping assistants like Amazon's, and ensure structured product data to enhance AI recommendations.
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