The battle for AI dominance isn't just about technology, but about language. Companies like Google (with Gemini) and OpenAI (with ChatGPT) are competing to make their product name the default verb for AI interaction, similar to how "Google it" became synonymous with search.
Despite the hype, the financial reality is that companies are investing trillions into AI technology, while the revenue generated is still only in the billions. This significant gap raises questions about long-term sustainability and the timeline for profitability that leaders must address.
As AI becomes more integrated into marketing, the average consumer remains wary. To succeed, brands need to proactively increase transparency and authenticity, emphasizing the human element behind their operations to build trust and overcome customer skepticism about AI-driven engagement.
The rise of AI shopping agents acting on behalf of consumers will make the traditional marketing funnel obsolete. Customers will bounce between channels in unpredictable ways, guided by AI recommendations, making standard KPIs and attribution models increasingly difficult to track and rely upon.
Brands will struggle to capitalize on agentic AI if they treat it as a side project for existing teams. Mastering complex AI systems is a full-time job, necessitating the creation of specialized roles like "AI e-commerce manager" to focus exclusively on optimizing these new technologies.
While the industry buzzes about sophisticated "agentic AI," the most common real-world applications in e-commerce are far more basic. Retailers are primarily using AI for task-oriented work like optimizing SKU description pages, highlighting a significant gap between current capabilities and future hype.