he 2025 landscape will promise to redefine the relationship between AI, commerce, and consumer behavior. Updates like the ones recently witnessed in Perplexity's progress herald a shift that promises to revolutionize how we search and shop. Google Shopping is rapidly changing; retailer websites boast ever-improving search capabilities, and social platforms make the purchase path more seamless than ever.
That, however, is just the tip of the iceberg. From Gen Z's increasing trust in AI influencers to monetizing first-party data, artificial intelligence will rewrite the commercial playbook. Do you like to watch this content? Hear from Lauren Viens.
Search is getting smarter on every platform. Google Shopping is the leader, as its improved features are making it easier for the path to purchase. Retailer sites are spending much more money on search technologies that can really compete with that. Social media is also catching up by applying AI in its search functions and trying to make a difference between discovery and purchase.
For consumers, this evolution means unprecedented convenience—products and services are now just a few clicks or voice commands away. However, the seamlessness of these interactions raises questions about overconsumption and its broader societal and environmental impact.
The hunger for first-party data has seen a gold rush in the retail media sector as both traditional and non-traditional players enter the fray. Financial institutions like PayPal and J.P. Morgan and hotel chains such as Marriott International are entering the advertising space by leveraging their proprietary data to offer highly targeted ad placements.
Amazon's new ad solution is "Rufus," a recent AI power tool, and a testament to how fast monetization is spreading to new industries. AI is now being used in advertising to ensure that ads reach the exact client based on client data, thereby making businesses believe they are at the top of the game.
Artificially powered search and chat interactions make shopping faster and easier than ever, but while simplification might appeal to the customer's senses, the fear of such actions is how people will overspend and create unnecessary purchases through artificial encouragement.
Simultaneously, new participants in the field of AI scramble to monetize these innovations while further saturating an already fragmented advertising landscape. As these new technologies mature, the instances and accuracy at which targeted advertisements will increase while creating a buyer environment where buyers feel bombarded by advertisements being omnipresent or personalized.
This surge in consumerism comes with its downsides. Excessive consumption driven by effortless purchasing and persuasive advertisement poses serious sustainability and health-related threats. However, it fails to address the data privacy question.
Privacy regulators are falling behind the pace of technology development. Businesses are gathering, processing, and selling user data at a speed unparalleled in history with hardly any checks on it. Some consumers protest against data privacy, but others are willing to compromise it for the sake of ease and personalization.
Contrary to predictions, SEO is far from dead. Large Language Models (LLMs) with advanced search capabilities still rely on traditional factors like backlinks and rankings to surface information. However, the dynamics of optimization have shifted significantly.
Companies must now adapt their strategies to optimize content specifically for LLM ingestion. Unlike traditional SEO, LLMs prioritize high-dimensional semantic relevance over outdated metrics like keyword density.
As Kieran Flanagan, SVP of Marketing at HubSpot, explains, “AI will cannibalize informational content. Keep your organic traffic with unique, research-based content.” This means businesses must focus on producing original, in-depth, and value-driven material to remain relevant in an AI-driven search landscape.
The key to surviving in this new era is not only creating information but also crafting it in a way that is consistent with LLMs' enhanced, context-driven comprehension. It's no longer about exploiting the system; instead, it's about providing actual, meaningful value.
The traditional monthly subscription model, the bread and butter of SaaS and digital services, is rapidly becoming obsolete in the age of AI. With AI-powered systems and tools getting increasingly complex and resource-intensive, the costs associated with running these technologies have become highly unpredictable.
Financial unpredictability is driving a shift from flat-rate subscriptions to usage-based pricing models where customers are billed based on their consumption of resources or the actual work delivered by AI systems.
Kyle Poyar, the founder of GrowthUnhinged, puts it quite succinctly: "We're moving away from charging for access to software and toward a model of charging for the work delivered by a combination of software and AI agents.”
This confluence of advanced search, AI, and retail media is making the consumer environment both more dynamic—and potentially more intrusive—than ever before. Innovation, privacy, and ethical consumption will challenge businesses, regulators, and consumers alike.
More convenience: Through AI, it will remain relatively easy to shop, and such a frictionless and intuitive experience tends to cater more to consumer needs.
Heightened Competition: As more players enter the retail media space, advertising strategies will become increasingly aggressive and sophisticated.
Blurred Boundaries: The lines between search, social, and shopping will continue to blur, making it harder to distinguish between discovery and promotion.
Evolving Privacy Norms: Whether through stricter regulations or consumer advocacy, the question of data privacy will remain a critical—and contentious—issue.
This bodes to be an exciting future ride for the advertisers and the consumers. Along with that comes a huge responsibility, however- one to take thoughtful action on such changes. And embracing all this comes a big sense of vigilance towards these larger implications about society, privacy, and the planet.
The winners of 2025 will not only build with AI but also market, sell, and price with it. Consumer habits will change, and businesses must adapt or risk falling behind. Companies that integrate AI into every step of their sales and marketing funnel-from lead generation to personalized customer interactions, gain a competitive edge.
AI will reshape not only how businesses reach consumers but also how they understand them. Advanced analytics will allow businesses to predict trends, anticipate needs, and create hyper-personalized experiences that drive loyalty and engagement. Those who do not adopt them will be left behind in the wake of faster, smarter competitors. The question is no longer whether to adopt AI but how fast and effectively you can implement it to stay relevant.
From AI-led growth strategies to dynamic pricing models and real-time customer support solutions, businesses that think ahead and innovate with AI will set the benchmarks for success in 2025 and beyond.
What is your strategy for navigating this AI revolution? Do you embrace change and lead or risk being outrun by competition?
Thank you, Lauren "🤖" Vriens—the goddess of AI.