Brands and retailers are struggling to keep up with changes to the shopper experience as consumers adopt genAI-powered “click-less journeys.”
Consumers increasingly have a negative perception of generative AI (genAI) in the creator economy while fewer see it positively, per a Billion Dollar Boy Study. AI is becoming a necessity across marketing strategies. Negative consumer attitudes toward AI in the creator economy suggest that it’s not whether advertisers and creators use AI, but how they use it that will determine if they see success or face backlash.
Baidu posted its sharpest revenue decline on record, with ad revenues falling 18% as AI-generated answers replace traditional search clicks. Ernie Bot now powers responses on most Baidu queries, improving user experience but suppressing monetizable activity—a trend management says will weigh on results into Q4. Competitors like Tencent, ByteDance, and PDD are still growing 20% to 30% YoY, suggesting Baidu’s weakness is structural. While the US market is more diversified, Baidu offers a stress test: AI can reshape search faster than monetization evolves. For advertisers, it’s a reminder that even Google and Microsoft must balance innovation with economic stability.
OpenAI introduced a shopping research feature for ChatGPT that builds personalized buying guides based on user queries and past conversations. The feature is available to all ChatGPT users, including those on free plans; OpenAI is offering “nearly unlimited usage” throughout the holiday season. Making the feature widely available at no cost suggests that OpenAI is looking to get users to rely on ChatGPT for purchase decisions, which could eventually result in greater buy-in for its agentic checkout features. However, it faces stiff competition: Perplexity, Google, and Amazon have all rolled out advanced AI functions to help holiday shoppers.
A new report from ANA and Harris Poll indicates that future marketing success will require delivering offline experiences. Brands will need to recalibrate budgets to accommodate this hybrid landscape of high-touch engagement blended with AI-driven discovery. Brands should use AI to handle low-touch decisions, then reinvest the time and trust gained into high-touch offline experiences and brand activations like pop-up shops or store takeovers. Those events create meaning that will help brands stay visible and valued.
45% of B2B marketers worldwide are prioritizing investment in AI-powered marketing tools for 2026, according to an August 2025 report from Content Marketing Institute.
As AI increasingly powers everything from holiday ads to product recommendations, retailers face a critical balancing act between efficiency and authenticity. "The question isn't if retailers will use AI, it's how they'll keep using it and maintain the human touch along the way," said host Suzy Davidkhanian on a recent episode of “Behind the Numbers.”
Consumer concerns over AI scams are rising, as three-quarters of UK adults believe AI advancements have made online scams more difficult to identify, per Barclays. Just 36% of UK consumers are confident they could spot an AI scam. As consumers wade through scams to find legitimate retail sites, ecommerce marketers should review brand search results, monitor social mentions, earn trust through About and FAQ pages, and advertise with caution on social media sites.
New Apple research points to the iPhone company pairing large language models (LLMs) with traditional sensors to build a more precise understanding of what a user is doing in real time. It’s likely to show up in sensor-enabled smartphones, computers, and smart home hubs hinged on ambient intelligence. Brands should explore how to design for moments, not messages. Build content and promotions that surface organically depending on a user’s activity, be it cooking, commuting, or exercising—so brands show up when it matters most.
Google has officially begun showing ads in its AI Mode search engine after announcing a rollout earlier this year. Google’s early testing of ads in AI Mode suggests that AI-driven search placements are beginning to take shape and may ultimately unlock new revenue potential. But with performance still unproven, advertisers should track developments closely while resisting the urge to invest heavily before the format demonstrates clear value.
OpenAI faces rising pressure from Google’s Gemini 3 because of its improved performance and multimodal functionality in text, sound, vision, video, and coding tasks. Meanwhile, new data shows that ChatGPT drives far less traffic to publishers than expected. Gemini 3’s leap forward and ChatGPT’s diminishing user clicks force brands to rethink how they show up in a world where answers live inside the model, not on the open web. Optimizing for generative engines now and focusing on answer-ready content will drive traffic, monetization, and attribution later as more engagement happens inside AI rather than after clicks.
Amazon blocked several OpenAI-affiliated crawlers from accessing its site, a move first reported by ecommerce analyst Juozas Kaziukėnas. That marks the retailer’s latest attempt to keep third-party agents from encroaching on its turf and endangering ad revenues. Amazon’s insistence on keeping AI agents at bay is the right move for the company for the time being. Adoption is minimal for now, hampered by trust issues, clunky UX, and minimal merchant participation. However, the gates will have to open at some point—and the longer Amazon waits, the more ground it cedes to rivals like Walmart.
The IAB’s 2025 Creator Economy report shows creator marketing has become a full-fledged media channel—one projected to reach $37.1 billion in spend next year, growing 26% YoY and outpacing the broader ad market by a factor of four. Nearly half of advertisers now call creators a must-buy, yet workflows remain fragmented across budgets, discovery tools, and measurement systems. With AI accelerating both production and complexity, the report lays out the emerging mandate: treat creator marketing as its own discipline with centralized budgets, standardized vetting, unified measurement, and formal AI governance. For marketers, real performance now requires real structure.
Walmart and Target closed their recent earnings calls on sharply different footings, but with a surprisingly shared vision for the immediate future.
Google is innovating its AI image generation capabilities for advertisers with the release of “Nano Banana Pro.” The tool enables advanced creative capabilities for ads, enhancing brands’ ability to generate and edit images using AI in Google Ads. AI is set to deliver increasing value to advertisers as creative capabilities evolve and consumers generally grow more comfortable with its role in marketing.
Advertising industry, public relations, and related services employment decreased by 800 jobs in September, per delayed data from the Bureau of Labor Statistics. The decline underscores mounting pressures across the ad sector. As industry employment declines, ad professionals need to focus on skill development, adaptability, and networking.
Chubb has introduced AI-driven analytics and product matching features within its Chubb Studio platform, which lets partners embed Chubb insurance in their digital experiences. It’s another move that reinforces the incumbent insurer’s position as a key player in the space. Traditional sales channels will inevitably decline as Gen Zers and young millennials become a larger share of insurance buyers. Insurers need to rethink their distribution strategy and technology infrastructure or risk losing access to digitally native customers who expect seamless, integrated purchasing experiences.
Digital health tech funding continues to rebound in 2025, bolstered by AI deals. Funding reached $3.9 billion in Q3, already surpassing last year’s total, per PitchBook. AI is driving a new wave of digital health investment, and both healthcare systems and providers will feel pressure to adopt AI-assisted tool, not just experiment with them.