Brands face new visibility battle as AI reshapes the buying journey

Generative AI is rapidly becoming a new gatekeeper to brand visibility and product choice, influencing purchase decisions well before shoppers have even visited a retailer’s website, app or gone in-store.

Two new research papers on AI retail suggest the “AI honeymoon” is well and truly over and marketers need to rethink how their brands show up in the buying journey as AI increasingly shapes recommendations, comparisons and shortlists.

One study, from insights agency The Navigators, highlights the growing role of AI as a discovery tool, with 38% of Australians now using AI as a complement or replacement for traditional search. Around 41% say they pay attention to AI-generated search summaries, while 29% say they trust them.

SEE MORE: AI is here, marketers must act now or risk falling behind

The findings point to a shift in how consumers discover and evaluate brands, with AI tools increasingly acting as an intermediary layer between customers and traditional digital touchpoints.

Dean Harris, director at The Navigators, said generative AI is already reshaping how brands compete for visibility.

“Our research shows generative AI is no longer a fringe influence or aid for work or study, but a growing force shaping consumer behaviour,” Harris said.

“This new generation of Australian ‘AI shoppers’ is already relying on these tools to guide decisions across categories, with adoption only set to increase.”

Reshaping the buying journey

The research indicates AI is already playing a meaningful role in purchasing decisions.

Thirty-nine percent of Australians say they now use AI tools to help make buying decisions, with 31% acting on AI recommendations and 27% open to buying directly through an AI tool.

Among those using AI in purchase decisions, the most common uses include comparing brands (80%), discovering new products (72%), understanding pricing (56%) and receiving recommendations (48%).

AI-assisted purchasing is already spreading across both high-consideration and everyday retail categories.

Electronics and technology leads usage at 18%, followed by groceries (14%), health products and services (13%) and travel (12%). Harris said the shift challenges the traditional marketing funnel.

“AI is now actively shaping shortlists and recommendations, with consumers increasingly bypassing traditional funnel mechanics,” he said. “As AI-enabled purchasing begins to emerge, marketers need to plan for a future where AI plays a direct role in buying decisions.

“In that world, visibility inside AI systems becomes critical at the moment of choice.”

Visibility the new battleground

The research also highlights a widening gap between AI usage and trust. While 41% of Australians pay attention to AI-generated search summaries, only 29% say they trust them.

That trust gap suggests consumers remain cautious about AI-generated information even as they increasingly rely on it to guide decisions.

Harris said credibility and third-party validation will become increasingly important signals for AI systems deciding which brands to surface.

“In a market flooded with misinformation and low-quality content, AI systems are becoming far more selective about what they surface,” he said.

“For brands, building credibility through trusted sources and third-party endorsement will play a critical role in increasing visibility and trust.”

A wake-up call

Douglas Nicol, co-founder of the Australian Centre for AI in Marketing, said the findings mark a turning point for the industry.

“This research should be a wake-up call,” Nicol said. “Our industry has been heavily focused on back-end automation and cost reduction through AI. That matters, but it is not the whole story.

“Marketers now need to understand how AI is reshaping buying behaviours for their customers.”

The implications could be significant for brand strategy.

As AI increasingly mediates discovery and recommendation, marketers may need to rethink how brands are structured, described and validated across digital ecosystems. For some organisations, Nicol said, the shift may require incremental adjustments.

“For others, it will require a broader reset of strategy, investment and how marketing proves its value.”

AI “slop” eroding trust

A separate report from CRM platform Klaviyo found Australian consumers are increasingly frustrated by AI slop - or low-quality, mass-produced content that is now flooding digital channels.

Despite high adoption of AI shopping tools, the research shows 39% of Australians say seeing AI-generated marketing content actually makes them trust a brand less. Around 40% of consumers report regularly spotting low-quality AI-generated posts, responses and marketing messages on social media multiple times a week.

Marcus Rossato, head of marketing APJ at Klaviyo, said the findings show the honeymoon phase with AI is already fading for Australian consumers.

“The honeymoon phase with AI is officially over for Australian shoppers," Rossato said. "While these consumers lead the world in AI adoption, they have one of the highest bars for authenticity. For younger audiences and daily users, generic AI content isn’t just ineffective - it actively damages brand equity.

“What our data shows is that brands must move beyond using AI for mere efficiency and toward using it for emotion. The opportunity for brands in 2026 is not to scale content faster, but to scale value. Whether it’s the enthusiast who demands perfection or the skeptic hunting for a human touch, generic AI is now a brand killer.”