Artificial intelligence (AI) has become a transformative force in eCommerce, reshaping how businesses attract customers, optimize operations, and achieve growth. With the rapid evolution of Large Language Models (LLMs) like ChatGPT, Perplexity, and Google's AI tools, brands that adapt to these groundbreaking technologies are reaping significant rewards. However, many businesses remain unsure of how to harness AI’s potential effectively. In this article, we’ll analyze how AI is changing the eCommerce landscape across visibility, customer acquisition, retention, and more, based on insights from a leading industry expert.
Dr. Jonathan Snow, Chief Innovation Officer at Avenue Z, highlights AI’s role as the next big growth lever for eCommerce. In his discussion, he shares actionable strategies and essential trends that every business leader, marketer, and creator should know to stay ahead in this new AI-dominated era.
The Impact of AI on eCommerce Visibility and Conversions
One of the biggest shifts happening in eCommerce is the rise of AI-powered search and its effect on visibility. Traditional search engine optimization (SEO) has long been a cornerstone of online marketing, but AI is redefining how people discover brands and products. Dr. Snow explains the following:
-
Higher-Intent Traffic Through AI Referrals
Traffic generated from AI tools like ChatGPT and Perplexity converts at a significantly higher rate than traditional search traffic. This is because these platforms act as trusted advisors, providing personalized recommendations that carry more credibility than a generic search engine result. AI tools thus operate as a new kind of "word-of-mouth" channel. -
AI Search Visibility Index
Avenue Z has created an "AI Visibility Index" to measure how brands rank in AI-driven search environments. By tracking mentions across platforms like ChatGPT, Perplexity, and Google AI, the index provides insights into which factors contribute to being referenced positively or negatively by AI models. For example, Dr. Snow shares that ChatGPT and Perplexity prioritize different content types, making it crucial to tailor strategies to each platform’s preferences. -
Content and PR as Key Drivers
To optimize for AI search visibility, brands must focus on creating high-quality on-site content, investing in technical SEO, and securing third-party validation through trusted publishers. For instance, beauty brands benefit from features in publications like Vogue or Byrdie, as these external sources are frequently cited by AI systems.
Modern Media Buying and AI-Driven Ad Scaling
AI doesn’t just transform visibility - it fundamentally changes the way brands approach media buying. Dr. Snow identifies a major issue: many brands are stuck in outdated advertising strategies, causing them to miss out on the full potential of new AI-powered tools.
The Shift to High-Volume Creative Testing
Social media platforms like Meta and Applovin have implemented advanced machine learning models that thrive on high volumes of creative inputs. Instead of running 50 ads per month, top-performing brands are now launching 500 to 1,000 ads monthly. This increased volume enables AI algorithms to match the right ad to the right audience in milliseconds, significantly improving personalization and campaign efficiency.
To achieve this scale, brands are using AI-powered creative tools and bulk ad publishing integrations. These external tools allow marketers to create and upload hundreds of personalized ad variations in minutes, rather than hours, enabling a higher level of optimization and reach.
Case Study: Scaling Revenue with AI-Enhanced Ads
Dr. Snow shares the story of a brand that leveraged AI and influencer content to scale its revenue. By converting TikTok Shop affiliates into Meta whitelisted influencers, the team was able to publish thousands of ads across social platforms using AI-driven tools. This approach resulted in a 4x increase in daily revenue while maintaining high ad efficiency - a feat that would have been impossible without AI technologies.
The Role of AI in Retention: Personalization at Scale
Retention is just as important as acquisition, and AI is paving the way for more personalized and effective customer engagement strategies. Traditional email and SMS flows, such as cart abandonment reminders, are becoming less effective as customers grow desensitized to automated messages. Dr. Snow suggests a more innovative approach:
-
AI-Powered Conversational Agents
Brands can deploy AI-driven agents to create personalized interactions via SMS, iMessage, or WhatsApp. Instead of receiving a generic reminder to reorder a product, customers might receive a message that feels like a one-on-one conversation, enhancing trust and engagement. -
Better Customer Experience Equals Higher Retention
By making interactions feel human and tailored, AI tools can improve customer satisfaction and drive repeat purchases. This shift from impersonal automation to AI-enhanced personalization represents a critical step forward in retention strategies.
Challenges and Risks of Ignoring AI in eCommerce
Despite its potential, many brands are still hesitant to adopt AI tools, which poses significant risks to their long-term survival. Dr. Snow highlights two key dangers:
-
Falling Behind in Media Buying
Brands that fail to embrace AI-driven media buying will struggle to compete against those using advanced optimization techniques. With fewer creatives and less personalized ads, they risk losing market share and seeing a decline in campaign performance. -
Missing the AI Search Revolution
Younger generations, particularly Gen Z, are shifting their search behaviors toward AI platforms like ChatGPT and Perplexity. Brands that fail to optimize for these new search ecosystems will be left out of critical top-of-funnel conversations, ceding visibility to competitors.
For challenger brands, however, this shift represents a massive arbitrage opportunity. AI search is still an emerging channel, allowing smaller players to compete with household names by being early adopters and strategically positioning themselves in AI-driven recommendations.
Key Takeaways
- AI as a Top-of-Funnel Channel: Tools like ChatGPT and Perplexity function as modern word-of-mouth platforms, driving high-intent traffic that converts better than traditional search.
- Optimize for AI Visibility: Success in AI-driven search requires strong PR, technical SEO, and high-quality content. Third-party validation is critical, as AI tools favor trusted external sources.
- Adopt High-Volume Creative Strategies: AI algorithms on platforms like Meta perform better with a larger pool of ad creatives. Brands should aim to launch hundreds of ads monthly using AI-powered tools.
- Leverage AI for Retention: AI-driven conversational agents can create personalized experiences, improving customer retention and satisfaction.
- Track AI Mentions: Even if AI referrals are difficult to track through UTMs, brands should measure how often they’re mentioned in AI-driven platforms to gauge their visibility impact.
- Act Now or Fall Behind: Brands that ignore AI risk losing their competitive edge in both paid media and organic search, while early adopters can gain a significant advantage.
Final Thoughts
AI is no longer just a buzzword in eCommerce; it’s a transformative force that’s reshaping how brands achieve visibility, drive revenue, and retain customers. From leveraging AI-powered media buying tools to optimizing for AI-driven search, businesses that embrace these innovations now will position themselves as leaders in the future of eCommerce.
For beginners and experienced professionals alike, the next step is clear: stay informed, test new tools, and adapt your strategies to align with the evolving AI landscape. The brands that succeed will be those that view AI not as an optional add-on, but as an essential pillar of their growth strategy.
Source: "Why AI Optimization Is the Next Growth Lever for eCommerce | The Ecommerce Coffee Break Podcast" - The Ecommerce Coffee Break Podcast, YouTube, Sep 8, 2025 - https://www.youtube.com/watch?v=iUPBU7sMR0g
Use: Embedded for reference. Brief quotes used for commentary/review.
