An OpenAI leak indicates that ads are coming to ChatGPT in the near future, according to computer engineer Tibor Blaho. Advertisers should anticipate a future where ads become a core part of the ChatGPT experience and act quickly to test and learn before competitors, but should remain agile in their strategies and remain informed about developments in consumer behavior.

PayPal merchants will now be discoverable within Perplexity, per a press release—right in time for Cyber Five. PayPal merchants stand to benefit from the rising tide of genAI adopters who are reinventing the research, product recommendation, and deal-seeking status quo. Merchants that cater to Gen Z should push to be early adopters of the new update: 47% of Gen Zers already have found a new brand or product through AI, per an Adobe survey. Early mover merchants could get a boost from genAI holiday volume this season.

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.

Perplexity is relaunching its agentic shopping product for all users next week, just in time for Black Friday, with PayPal as its key partner. The upgraded tool improves shopping intent detection and personalization using users’ past search data, while PayPal merchants will handle transactions and customer service directly. The move intensifies competition with OpenAI, Amazon, and Google, all racing to dominate AI-powered shopping ahead of the holidays. While sales from these tools are expected to remain modest, they offer brands a valuable testing ground for future ecommerce growth driven by generative AI.

Future-proofing against—and capitalizing on—advances in consumer-facing AI will be the overarching theme for retailers in 2026.

Automation, new commerce models, and a fresh generation of consumers are transforming the rules of connection and creativity. Explore the 11 trends shaping the digital future.

Snapchat revenues and users grew in Q3—but the company warned that age verification laws would have unpredictable results on its business. While innovative ad tools and a new partnership with Perplexity could offer more value, stagnant growth and new policies that would restrict access to over 18% of Snapchat’s audience make the social platform a riskier investment than those with ad businesses less reliant on a youth-oriented audience like Instagram.

Amazon is suing Perplexity, seeking to stop its Comet agentic AI browser from shopping on users’ behalf. Amazon alleges that Comet violates its terms of service and degrades the Amazon shopping experience. Perplexity called Amazon's actions a "bully tactic" and argued the company should appreciate agentic AI’s ability to make shopping easier. Amazon’s suit against Perplexity could become an important test case that helps define the limits for agentic AI and the actions retailers can take to protect themselves—at least temporarily—from the intrusion of AI agents. However, it will not stop AI agents from gaining traction in ecommerce.

Generative AI is transforming how consumers discover products and brands earn visibility. As usage of—and trust in—AI grows, brands must rethink how they optimize for discovery and measure success.

Reddit’s Q3 earnings confirmed what advertisers have suspected: the platform’s community-driven ad model can scale profitably. Revenue jumped 68% to $585 million, crushing Wall Street estimates, while EPS of $0.80 easily beat forecasts. Global daily actives climbed 19% to 116 million, though US user growth slowed to 7%, down from 12% last quarter. Data licensing revenue rose 7% as Reddit continues to defend its content from unauthorized AI scraping—a fight central to its long-term strategy. For advertisers, Reddit’s results underscore its strength as a high-intent, performance-focused channel—even as slower domestic user growth raises questions about future expansion.

Forty percent of US adults have used AI as a shopping assistant in the past year, per a study by PayPal—and 77% of past or potential AI shoppers plan to use it while holiday shopping this year. Younger consumers are driving the change. Sixty-one percent of Gen Zers and 57% of millennials have used AI to assist with a purchase in the past year. The holiday season’s cheer has been dimmed. We lowered our forecast for November-December sales growth to 1.3% in light of tariffs and economic uncertainty. For merchants to compete amid that slowing spend, adopting AI is critical. To score the most volume from ecommerce-led sales, merchants need to make sure their partnerships with AI platforms prioritize mobile-first ecommerce: Mobile commerce will propel over 56.5% of holiday ecommerce sales, per retail mcommerce holiday forecast.

AI will soon redefine how people find information. As search engines and generative AI engines converge, the next wave of discovery is emerging—and marketers who invest in AI optimization now will secure an early advantage.

As Google’s Chrome and DuckDuckGo integrate AI tools into their browsers, Perplexity has launched its own, built with agentic AI capabilities from the ground up—Comet. When perusing products, Comet can take complex natural-language requests and surf review sites, listicles, and news articles to find top options. For users looking for an AI-first experience, Comet is a promising entry that blends active assistance with traditional web functions. However, given Perplexity’s recent scaleback on advertiser initiatives, AI search may not be the next frontier for ad formats. Continuing investments in traditional search options like Google Search is crucial to ensuring visibility.

Perplexity is taking a step back from its advertising initiatives amid struggles to monetize AI search. Marketers should pause planned investments in AI search until search ads are measurable and proven to be effective. AI adoption may be growing, but there remains no clear evidence that ad formats in AI search provide returns.

A Yext analysis of 6.8 million citations across ChatGPT, Gemini, and Perplexity found that 86% of AI-generated answers rely on brand-managed content—from official websites and listings to reviews. First-party sites led with 44% of citations, followed by listings (42%) and reviews (8%). The findings suggest AI models increasingly trust structured, authoritative data over publisher or community sources. But fewer users click through—only 8% from AI summaries versus 15% from standard search—indicating that generative platforms are capturing more engagement directly. To stay discoverable, marketers must pair clean, structured first-party data with strong social visibility as AI search reshapes traffic flows.

Perplexity dropped the $200 monthly fee for its AI-native Comet browser, making it free worldwide but with rate limits. The change follows Google Chrome hitting a record 73.7% share of desktop browsing in September, per StatCounter. Comet can summarize webpages, pull key details, and wade through links on a user’s behalf. Chrome remains the must-buy channel, but ChatGPT’s mobile stickiness and Comet’s positioning prove that audiences may increasingly flow through alternative gateways. The brands that experiment early across these varied environments will be better prepared when consumer behavior tilts away from legacy browsers.

AI chatbots most often use health media sources like Mayo Clinic and Healthline in answering consumer health-related questions, according to an Outcomes Rocket study. There’s an opportunity for marketers to grow chatbot attention with quality content. Create credible and user-friendly content and avoid overly complex or jargony material to appeal to the way chatbots are constructing answers. Cater to the preference for recent data and summarized content by updating content frequently and offering condensed takes at the top of posts.

PayPal’s Honey browser extension will start recommending products based on users’ conversations with chatbots, per a press release. Relying on the Honey browser extension rather than striking individual partnerships with each major AI platform is a far more expedient pathway to broaden Honey’s reach across AI-based shopping. And by keeping the selection and checkout processes squarely in the province of the user, Honey gets to reap the benefits of the rise in AI-enabled product discovery without the associated risks of agentic commerce.

Anthropic’s Claude AI is taking on competitors in a multimillion dollar ad campaign. The “Keep Thinking” campaign positions Claude as “the AI for problem solvers” and marks Anthropic’s first foray into brand marketing. The campaign is a necessary start to help Claude gain market share and boost its comparatively small user base, but it’s only the first step in a long journey ahead for Anthropic.

Google and PayPal ink multiyear partnership for commerce solution with a focus on agentic AI, per a press release. Google and PayPal’s surprising partnership reflects the ongoing scramble to secure the best positioning in the Wild West of AI development. All players want to have an early mover advantage; that can incentivize unlikely partnerships to avoid falling behind rapidly evolving technology.