AI-Powered Search Is Expected to Influence €500 Billion in Retail E-Commerce by 2028

AI-powered search and discovery tools are expected to influence up to €500 billion in retail e-commerce by 2028. These tools have become an integral part of consumers’ product search and purchasing decisions through generative artificial intelligence. A new analysis published by Euromonitor International revealed that AI-based platforms have fundamentally transformed the ways in which brands are discovered, evaluated, and trusted in the online environment.

According to the “Euromonitor International Voice of the Consumer: Lifestyles Survey 2025,” more than half of global consumers use generative AI tools to obtain information and recommendations. This finding points to a structural transformation in digital commerce behavior.

From Search Results to AI-Powered Conversations

Rabia Yasmeen, global insight manager for e-commerce at Euromonitor International, stated that AI-powered search has created a deeper transformation than previous digital trends such as social commerce or livestream shopping. Yasmeen said that artificial intelligence is “reshaping how consumers discover brands, evaluate choices, and make online purchasing decisions.”

In traditional search models, visibility depended on search engine optimization, paid advertising, and retail media investments. However, in AI-generated responses, there is no guaranteed visibility slot, even for market leaders. Yasmeen emphasized that the impact has now shifted from “share of views” to “share of conversations.”

Euromonitor data show that this transformation will have a significant impact on the global e-commerce market and that the market is expected to exceed USD 595 billion by 2028.

Risk to Brand Visibility in AI-Powered Discovery

The analysis also points to significant risks for established brands. Euromonitor examined more than 8,700 brands operating in the US online skin care category and found that as consumer attention increasingly shifts toward AI-generated recommendations, up to half of existing brands could face the risk of a gradual loss of relevance over time.

In traditional digital shopping journeys, strong brands benefited from advantages such as scale, advertising budgets, and category placement. In AI-powered responses, however, visibility changes dynamically depending on the user’s context and query. This situation creates opportunities not only for established brands but also for new and smaller players.

Yasmeen noted that while this shift involves risks, it also makes the emergence of new winners possible. She said that brands offering product relevance, clear positioning, and trustworthy signals could stand out in AI-generated responses.

Faster Decisions, Shorter Shopping Journeys

AI-powered search is also significantly shortening the online shopping journey. Traditionally, consumers went through many stages such as searching, browsing category pages, reading reviews, and comparing alternatives. According to Euromonitor, in AI-mediated interactions these steps often merge into a single conversation.

Consumers now ask questions in natural language instead of browsing product listings and expect short, context-aware answers. While this reduces friction in shopping, it concentrates the decision-making process largely on outputs provided by artificial intelligence.

Euromonitor concluded that retailers and brands need to rethink their digital strategies in order to remain visible in AI-powered environments. According to the report, future competitiveness will depend less on traditional ranking tactics and more on how well brands align with consumer intent, context, and trust signals.