What's Happening?
The retail industry is undergoing a significant transformation with the rise of agent-to-agent commerce (A2A), driven by advancements in artificial intelligence (AI). This new shopping model begins with consumers asking AI systems for product recommendations, which then pull data from brands or platforms to provide personalized suggestions. This shift is altering traditional direct-to-consumer (D2C) models, as more consumers replace search engines with AI for product discovery. Recent data indicates that 58% of consumers are now using generative AI for this purpose, leading to a disruption in familiar discovery paths and a reduced reliance on brand websites. As a result, brands are being urged to optimize their catalogs for AI-driven platforms to remain competitive.
Why It's Important?
The emergence of A2A commerce is reshaping the retail landscape, with AI-powered agents becoming the new gatekeepers of product discovery. This shift has significant implications for brands and retailers, as those who fail to adapt may lose visibility and market share. The ability to provide enriched product data is becoming crucial, as AI systems rely on comprehensive information to generate accurate recommendations. This transformation is already impacting revenue, with AI chat tools contributing significantly to sales during major shopping events. As AI continues to influence consumer behavior, brands that invest in smarter catalogs and adaptive strategies will be better positioned to meet evolving customer expectations.
What's Next?
Retailers are encouraged to prepare for the ongoing shift towards agentic shopping by auditing their product catalogs, structuring unstructured data, and implementing real-time infrastructure to ensure data accuracy. Collaborating with feed optimization partners can help brands optimize their data for AI-driven channels. As AI agents continue to gain prominence, retailers must track traffic and conversions from agent-driven experiences to measure performance and adjust strategies accordingly. The industry is moving towards a future where AI agents play a central role in product discovery and purchasing decisions.
