How ChatGPT Is Reshaping Digital Marketing and Consumer Behavior

BigGo Editorial Team
How ChatGPT Is Reshaping Digital Marketing and Consumer Behavior

As artificial intelligence continues to evolve at breakneck speed, ChatGPT and other large language models (LLMs) are fundamentally changing how consumers interact with digital platforms. The shift from traditional search engines to AI-powered assistants is creating new challenges and opportunities for businesses trying to maintain visibility in an increasingly AI-mediated marketplace.

The Decline of Traditional Web Browsing

A significant indicator of this shift came when Apple's senior vice president of services reported that Safari web browsing decreased for the first time in 20 years, attributing this change to users switching to large language models. While Google has pushed back on these claims, stating that its search engine continues to see overall query growth, data from Datos shows that e-commerce domains received 12.65% of all traffic referred from ChatGPT's search function between October and January, with Amazon.com accounting for 9.13% of all traffic.

From Clicks to Mentions: The New Marketing Paradigm

Traditional digital marketing has long focused on search engine optimization (SEO) to improve visibility in Google search results. However, as consumers increasingly turn to AI assistants for shopping and information, marketers must adapt their strategies. Until recently, digital marketing was all about winning the clicks. With the rise of LLMs, it is now all about winning the mentions, explains Yaron Litwin, chief marketing officer of the Parent Control App.

How AI Changes Consumer Search Behavior

When using ChatGPT or similar AI tools, consumers engage in more conversational queries rather than keyword-based searches. Erik Huberman, CEO of Hawke Media, describes this shift: when searching for running shoes, it's more of a conversation, with the AI providing options and explaining why each shoe might be the best fit for that specific query. This conversational approach requires brands to rethink how they present information online.

The Rising Importance of Brand Reputation

As LLMs take a holistic approach to gathering information, drawing from various online sources, brand reputation becomes increasingly critical. Christine Wetzler of Pietryla PR & Marketing notes that credibility is being built outside your site now, emphasizing the need for companies to curate brand storytelling through articles, blogs, and customer reviews that can be easily processed by AI systems.

Beyond Chatbots: The Emergence of AI Agents

The evolution of AI isn't stopping with conversational interfaces. AI agents represent the next frontier, capable of not just answering questions but taking actions on behalf of users. Unlike chatbots, which simply provide responses to prompts, AI agents can interact with websites, digital services, and software to complete complex tasks.

AI Agent vs. Chatbot Comparison:

  • Chatbots: Provide responses to prompts using language processing
  • AI Agents: Can take actions by interacting with websites, services, and software
  • AI Agents structure: Multiple independent tools arranged in hierarchy with LLM as "project manager"
  • Current AI Agent capabilities: Web browsing, online shopping, simple website design
  • Future potential: Managing schedules, making appointments, handling finances, creating creative works

The Expanding Capabilities of AI Agents

While early implementations like OpenAI's Operator have limited functionality, AI agents are expected to rapidly expand their capabilities. Just as ChatGPT has evolved significantly in just over two years to include memory, web browsing, vision, speech, and now agentic capabilities, AI agents will likely soon manage schedules, shop for groceries, make travel arrangements, book appointments, manage bank accounts, and handle numerous other tasks currently performed via smartphones.

Vulnerabilities and Ethical Considerations

Despite their sophistication, AI agents aren't infallible. Research has shown that agents using computer vision to search the web can be tricked into clicking specific links or pop-up ads through visual manipulation. This vulnerability opens the door to new forms of cybercrime and fraud targeting AI agents, while also creating opportunities for businesses that can effectively market to these digital assistants.

The Human Element Remains Essential

Despite their autonomous capabilities, AI agents still require human oversight. As these tools are still prone to errors and can perform worse than humans at many tasks, human supervision and accountability remain critical components of any AI implementation. This applies equally to individuals using consumer AI apps and businesses deploying commercial AI agents.

Preparing for an AI-Mediated Future

For businesses looking to thrive in this new landscape, adapting marketing strategies to accommodate AI intermediaries is becoming essential. This includes creating more branded content, cultivating positive third-party mentions, and ensuring that online information is structured in ways that AI systems can easily process and reference. Companies like Hawke Media are already partnering with AI optimization experts to understand how their brands are perceived by LLMs.

As Lauren Petrullo, CEO of Mongoose Media, aptly puts it: This is your new digital billboard. If your company isn't correctly represented, AI will fill in the blanks often inaccurately. In the emerging AI-mediated marketplace, ensuring accurate representation and positive mentions across the digital landscape is becoming as important as traditional SEO has been for the past two decades.