The news: Brand equity still closes sales, but AI is helping decide which brands get considered.
However, brand loyalty still matters when it’s time to make a purchase—only 6.3% of consumers trust AI recommendations more than their own brand preferences.
What it means: AI is shaping the top of the funnel by influencing which brands consumers discover and consider. While shoppers remain reluctant to let AI override their ingrained preferences at the point of purchase, AI recommendations are expanding the competition.
This opens up opportunities for smaller brands—large ad budgets and expensive placements won’t be the only factors in what users discover, democratizing consideration.
Implications for brands: As answer engines grow as gatekeepers in product discovery, brands must optimize for visibility in AI-generated recommendations while continuing to invest in the equity that ultimately drives purchases. Offering structured loyalty programs for returning customers and perks for new ones can help keep repeat shoppers on deck while giving new consumers a positive experience.
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