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AI Search Revolutionizes Retail: 64% of Australian Shoppers Embrace AI for Purchases, Warns Megantic

Megantic’s whitepaper reveals that 64% of Australian shoppers now rely on AI for purchases, urging retailers to adopt Answer Engine Optimisation to avoid losing visibility.

Megantic has released a whitepaper in collaboration with Shopify APAC, highlighting how AI-driven search technologies are transforming online retail discovery in Australia. The report cautions that eCommerce brands risk losing visibility if they fail to optimize their websites for these emerging AI search tools.

The whitepaper emphasizes the concept of **Answer Engine Optimisation** (AEO), which involves structuring digital content so that AI systems can effectively interpret, cite, and recommend it. Despite the growing influence of AI platforms on consumer purchasing behavior, many retailers continue to prioritize traditional search rankings.

Evidence of shifting consumer habits is significant. According to Shopify, 64% of shoppers are likely to use AI in some capacity when making purchases. A notable trend is the increase in research-to-purchase journeys that bypass a retailer’s website altogether, underscoring the importance of being visible through AI recommendations.

This shift is crucial for merchants, as AI systems are increasingly dictating which brands consumers encounter. Although traffic and rankings may appear stable, AI assistants are independently determining which retailers and products gain consumer trust, potentially sidelining brands that lag in adopting AEO strategies.

Megantic points to a broader rise in AI usage as a catalyst for this change. Data reveals that chatgpt.com experienced 5.5 billion visits in a month, with average session durations exceeding 13 minutes, while other platforms like Anthropic’s Claude also show strong growth.

The report further discusses evolving retail infrastructure. Earlier this year, Shopify introduced **Agentic Storefronts**, a framework enabling AI agents to interact with merchant back ends directly, distribute products across AI channels, and complete transactions without requiring shoppers to visit a merchant’s site.

“Search is becoming a conversation, and commerce is becoming agentic. In 2026, visibility is less about being the loudest—and more about being the easiest for machines to understand and trust: clean product data, clear policies, accurate inventory, and a checkout that can execute reliably wherever intent shows up,” said **Rhys Furner**, Director of Partnerships at Shopify APAC.

Megantic argues that this paradigm shift redefines discoverability for retailers. Brands must not only create web pages for human users but also ensure their product information is machine-readable, complemented by consistent policies and structured content that AI systems can reliably process.

The foundational elements of this approach are familiar, according to the agency. Site architecture, category structures, product data, and authoritative content remain critical but must now be tailored for both AI interpretation and human engagement.

A significant assertion in the whitepaper is that underlying data has evolved into a storefront in its own right. This mirrors a broader transformation in digital marketing, where the customer journey may increasingly take place entirely within an AI tool rather than on a brand’s website.

“As AI agents increasingly intermediate the shopping journey, your underlying data is your new storefront. We must move beyond simple keywords, combining a deep understanding of customer intent with rich, machine-readable data to marry the disparate needs of these two unique audiences,” said **Mark Baartse**, Fractional CMO and Digital Marketing Consultant.

For Australian retailers, the pressing concern is not whether AI search will proliferate, but how rapidly it will become integral to online shopping. The report suggests that brands investing early in structured product data and AI-readable content stand a better chance of being prioritized by large language models, while those that do not may find themselves overlooked despite retaining visibility in traditional search results.

Megantic also highlights intensifying competition among AI platforms and search providers. Although **Google** continues to dominate search traffic, AI tools are rapidly gaining traction, with **ChatGPT** leading the category and other services like **Gemini** and **Claude** also attracting a following.

Given that both **OpenAI** and **Anthropic** are planning to establish local offices in Sydney, the Australian market is poised to become increasingly active in the AI product landscape. This expansion is expected to heighten the usage of AI-driven discovery tools among consumers and escalate pressure on brands to ensure their content is understandable to these systems.

“We’re already seeing shockwaves across the eCommerce landscape. As Australians increasingly discover brands through AI-powered experiences, the brands that move early on AEO will have a significant competitive advantage,” stated **Jeremy Hanger**, General Manager at Megantic. This indicates that the momentum behind AI search is not just a trend but a fundamental shift in how consumers engage with brands online.

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Marcus Chen
Written By

At AIPressa, my work focuses on analyzing how artificial intelligence is redefining business strategies and traditional business models. I've covered everything from AI adoption in Fortune 500 companies to disruptive startups that are changing the rules of the game. My approach: understanding the real impact of AI on profitability, operational efficiency, and competitive advantage, beyond corporate hype. When I'm not writing about digital transformation, I'm probably analyzing financial reports or studying AI implementation cases that truly moved the needle in business.

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