TLDR: A new global report reveals that Gen Z and Millennials are increasingly relying on AI platforms for shopping advice, often preferring them over traditional search engines, social media, or influencers. This trend, termed ‘agentic commerce,’ highlights a significant shift in consumer behavior, particularly in Australia and New Zealand, where nearly half of these generations use AI for shopping daily. Brands are urged to adapt by optimizing for AI-driven platforms to maintain relevance and loyalty.
A recent global study, the ‘New Modes 2025’ report by Commerce and Future Commerce, indicates a profound shift in how younger generations approach shopping. The research, which surveyed 1,000 consumers across the US, UK, and Australia/New Zealand, found that one in three Gen Z individuals and one in four Millennials now turn to AI platforms as their primary source for shopping advice. This preference surpasses traditional methods like search engines, social media, and even influencers.
This emerging trend, dubbed ‘agentic commerce’ by researchers, signifies that AI is becoming the initial point in the consumer’s shopping journey. The adoption of AI for shopping is particularly pronounced in Australia and New Zealand, where a significant 46 percent of Gen Z and Millennials engage with AI platforms daily for their purchasing decisions.
Al Williams, General Manager of B2C at Commerce, emphasized the clear generational change, stating, “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.”
The report further details the growing trust in AI recommendations, with 23 percent of Gen Z and 27 percent of Millennials trusting AI suggestions more than human ones. Across all respondents, 41 percent reported daily use of AI platforms. In stark contrast, only 13 percent of Gen X and 3 percent of Boomers expressed a preference for AI in product research.
Phillip Jackson, co-founder and CEO of Future Commerce, highlighted the evolving role of AI, noting, “AI platforms aren’t just tools; they’re becoming trusted companions in the consumer journey. For retailers and brands, the implication is clear: the path to trust and loyalty increasingly runs through AI-driven channels.”
The study also uncovered an ‘always-on commerce mindset,’ with nearly half of all consumers (48 percent) maintaining a ‘perpetual shopping list.’ However, friction remains a significant issue, as 63 percent of consumers abandon their carts when required to create an account.
Key findings from the report include:
Gen Z shoppers are almost as likely to use AI (33 percent) as search engines (37 percent) for product research.
Millennials show a wider gap, with 26 percent preferring AI compared to 40 percent for search engines.
A notable 55 percent of consumers would unsubscribe from a brand if they receive an excessive number of marketing messages.
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To adapt to this changing landscape, the research suggests that brands must implement strategies such as Answer Engine Optimisation (AEO) and Generative Engine Optimisation (GEO). These optimizations are crucial for ensuring product visibility within AI-driven platforms like ChatGPT and Perplexity, thereby preventing retailers from being excluded from the next generation’s shopping experience.
