Why Gen Z is ditching search for AI

More young Aussies are now turning to AI platforms rather than traditional search engines, social media, or even influencers when deciding what to buy, according to a global report, New Modes 2025 by Commerce and Future Commerce.

The report surveyed 1,000 consumers across the US, UK, and AU/NZ to paint a picture of changing habits. Nearly half of Gen Z and Millennials in our region report using AI platforms every day. Around a quarter of them even admit they trust AI recommendations more than ones coming from humans.

The report also shows that shopping itself has become an always-on activity, with nearly half of all consumers keeping what researchers call a “perpetual shopping list”. Basically, a running tally of things they’re always considering buying. Yet while they’re always ready to shop, friction is still a deal-breaker: 63 per cent of consumers say they abandon their carts when asked to create an account.

So what is this Agentic Commerce thing?

The phrase ‘agentic commerce’ is coming up a lot in retail of late, so just what is it? In a nutshell, it refers to shopping journeys guided or facilitated by AI agents. Think ChatGPT or Perplexity, rather than people, influencers or even search engines. According to Al Williams, GM of B2C at Commerce, these agents help you discover, compare options, get recommendations, and even check out with minimal fuss.

“Gen Z and Millennials now trust AI more than search, social or influencers to guide what they buy. The shift is clear: brands that show up inside AI-driven platforms will be the ones earning relevance and loyalty in this new era,” Williams said.

Phillip Jackson, co-founder and CEO of Future Commerce, adds, “AI platforms aren’t just tools; they’re becoming trusted companions in the consumer journey.”

Why the switch to AI?

So why are younger generations so quick to swap Google and Insta for an AI assistant when it comes to shopping?

A significant aspect of the switch is convenience. Instead of bouncing around from one site to another, AI platforms pull everything together. They can summarise product details, compare brands side by side and serve up recommendations in one neat package. No more twenty open tabs clogging your browser.

Trust is another factor. If an AI has enough good data to work with, people start believing its suggestions. For Gen Z, a recommendation that comes out of a well-trained chatbot feels more reliable than a random influencer flogging the latest gadget on social. In their minds, the AI ‘knows’ them better than someone they follow online.

There’s also the issue of friction, or rather, removing it. Nobody likes being forced to set up an account, type in endless details or scroll through irrelevant options before they can buy. AI helps smooth those pain points, making the journey from ‘I like it’to ‘I’ll buy it’ much shorter.

Shopping itself has shifted. Thanks to the ‘perpetual shopping list’, people aren’t just hitting the shops at set times anymore. We’re always browsing, always spotting inspiration, always comparing and saving ideas for later. AI slips easily into that constant flow, feeding us options when we’re ready without us having to go looking.

What it means for Australian businesses

If shoppers are starting their journey with AI rather than search or socials, then your products need to show up in those platforms. That means making sure your product information, descriptions and specs are easy for machines to understand and surface. If you’re invisible to AI, you may soon be invisible to your customers.

This is where Answer Engine Optimisation (AEO) comes in. Just as SEO ensures you rank well on Google, AEO will help you rank well in AI answers. The clearer and more structured your data, the more likely an AI is to put your products in front of potential buyers.

Reduce friction everywhere

Start by auditing your product data. Are your descriptions clear? Do you have consistent specs, good images and plenty of reviews? That’s the kind of material AI engines need to surface your brand.

Next, think about creating content with AI in mind. FAQs, comparison guides and structured metadata that can be easily digested and repurposed by chatbots. You might also want to explore partnerships with AI-powered discovery platforms or test getting your products listed in spaces where consumers are asking AI for shopping advice.

On the operational side, it’s time to invest in tools that allow you to feed product catalogues directly into discovery engines, and train your team to understand the difference between optimising for AI queries versus SEO. And don’t be afraid to experiment. Whether it’s chatbots, recommendation widgets or virtual try-ons, these assistant-style features can make the customer experience smoother.

Why your business needs to adapt

So what’s the risk of ignoring the trend? Simple: invisibility. If your competitors are optimising for AI and you’re not, younger shoppers may never even stumble across your products. Worse, your brand could start to look outdated, clunky or less trustworthy compared to AI-friendly rivals.

And if you keep pumping marketing dollars into old tactics like search ads or influencer campaigns without feeding the AI discovery path, your return on investment is likely to shrink. Your customers and the market have moved on, and businesses that don’t move with it could find themselves in dire straits.

Gen Z is increasingly turning to AI for both searching and shopping. It’s not some future sci-fi possibility; it’s happening right now. If you want to keep your brand relevant, you need to show up where your customers are, and increasingly that means inside AI-driven platforms.

“Brands that show up inside AI-driven platforms will be the ones earning relevance and loyalty in this new era,” Williams confirms.

You can read the full report here.

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