Microsoft: AI conversations reshape retail search

Microsoft said in a blog post by Hope Ashcraft that shoppers increasingly express intent in natural language and that the conversation itself becomes discovery. The post cited Bain & Company, estimating that 30% to 45% of US consumers already use generative AI to research and compare products.

The blog described "agentic commerce" as systems that interpret intent, evaluate tradeoffs, and guide decisions while generating signals brands can act on.

It gave an example of an AI agent that considers weather data, a shopper’s style preferences, inventory, pricing and reviews to deliver recommendations and a targeted promotion.

The post also cited McKinsey projecting that by 2030 the US business-to-consumer retail market could see up to $1 trillion in orchestrated revenue from agentic commerce, with global projections reaching $3 trillion to $5 trillion.

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The post advised brands to ensure products and attributes are discoverable when consumers ask, and to launch owned conversational experiences to capture learning. It recommended designing product intelligence for portability across surfaces and governing measurement, signal sharing and experimentation. The blog noted Bain & Company’s finding that consumers currently trust brands’ on-site agents three times more than third-party agents.

Microsoft offered a guide on AEO and GEO to help brands optimize product data and prepare for AI-driven shopping, the blog said.

The Recap

• AI conversational agents are becoming the primary retail entry point.
• Bain estimates 30% to 45% of US consumers use generative AI.
• Brands should optimise product data and build owned agents.