Consumers are Embracing AI Search
The Rise of AI Chatbots in Online Search
After years of users depending on Google’s traditional search results to find everything from travel tips to clothing, a new trend is rapidly emerging: artificial intelligence (AI) chatbots that perform searches on behalf of users. This shift is changing the way consumers interact with the digital world.
The Surge in AI Search Traffic
Recent findings from Adobe reveal a significant increase in traffic to retail websites originating from AI search. The company analyzed over 1 trillion visits to U.S. retail websites and surveyed 5,000 U.S. participants to understand their use of AI search tools. The results indicated that:
- Overall Growth: AI search referrals skyrocketed by 1,300% during the 2024 holiday season compared to 2023.
- Cyber Monday Spike: On Cyber Monday, AI search referrals saw a staggering 1,950% increase.
These statistics are impressive yet not entirely surprising, as AI search tools were still in their early stages of development the previous year.
User Engagement with AI Search
What stands out is the engagement levels of users who arrive at websites through AI search compared to traditional search engines such as Google or Bing. According to the same Adobe study:
- Time on Site: Users referred by AI search tend to spend 8% more time on the site.
- Page Views: Such users view 12% more pages.
- Reduced Bounce Rate: They are 23% less likely to visit a link and immediately leave, a phenomenon known as "bouncing."
These figures suggest that AI-driven searches may be directing users to more relevant content, improving their overall browsing experience.
Controversies in AI Search
One notable player in AI search is Perplexity, a startup that has gained considerable attention and is valued at $9 billion. It offers AI-powered search through a chatbot interface, though it hasn’t been without its challenges. Perplexity faced allegations of plagiarism when it generated content that appeared to copy existing articles, sparking legal threats from companies like Forbes and News Corp.
Despite these growing pains, CEO Aravind Srinivas has acknowledged that improvements are in the works based on user feedback.
Established Players Enter the Fray
OpenAI, the company behind ChatGPT, has also launched its own AI search capability. Learning from the experiences of other platforms, OpenAI introduced its search function with careful attention to minimize pitfalls. The launch included partnerships with media organizations, emphasizing that publishers maintain control over how their content is displayed within the chatbot.
Consumer Preferences in AI Search
The response from consumers has been overwhelmingly positive. The Adobe survey revealed interesting insights into how people are using AI search:
- Online Shopping: 39% of respondents use AI search for shopping purposes.
- Research Aid: 55% utilize it for research.
- Product Recommendations: 47% rely on AI search for shopping recommendations.
This data is particularly appealing to advertisers, as AI search offers potential new avenues for reaching consumers effectively.
The Advertising Dilemma
While Perplexity and Google incorporate ads into their AI search results, OpenAI currently does not. CEO Sam Altman has noted that introducing ads into ChatGPT would be a last resort, as he finds combining ads with AI unsettling. OpenAI’s CFO has indicated that while they are considering ads for the future, it might not align with user expectations. The absence of ads could be one of the reasons users are gravitating toward AI search solutions.
The Potential of AI Search
As AI search continues to develop, it is capturing consumer interest who are eager to explore this new search paradigm. Critics of traditional search engines argue that they have become bogged down by advertisements and SEO pressure. AI search presents a promising alternative, with the potential to offer a cleaner, more efficient method of finding information online, provided it can navigate the challenges that come with growth and commercialization.
