AI search threatens Australian retailers, warns Megantic

Megantic has released a whitepaper with Shopify APAC on how AI search is reshaping online retail discovery. It argues that Australian eCommerce brands risk losing visibility if they do not adapt their sites for AI-driven search tools.

The report focuses on Answer Engine Optimisation, or AEO, which it describes as the practice of structuring digital content so AI systems can interpret, cite and recommend it. Many retailers, it says, still focus on conventional search rankings even as AI platforms play a growing role in how shoppers research and buy products.

According to the document, the shift is already visible in consumer behaviour. Shopify found that 64% of shoppers are likely to use AI to some extent when making purchases, with one of the fastest-growing patterns being research-to-purchase journeys that do not include a visit to a retailer's own website.

That matters for merchants because AI systems are increasingly deciding which brands to surface to consumers. The whitepaper says traffic and rankings may appear steady on the surface, while recommendation systems behind AI assistants make separate decisions about which retailers and products to trust.

Growing Shift

Megantic points to broader growth in AI usage as evidence that the change is accelerating. It cites data showing chatgpt.com received 5.5 billion visits in one month, with average sessions lasting more than 13 minutes, while Anthropic's Claude also recorded strong growth.

The report also highlights changes in retail infrastructure. Earlier this year, Shopify announced Agentic Storefronts, a system designed to let AI agents interact directly with merchant back ends, distribute products across AI channels and complete purchases without shoppers needing to open 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, Shopify APAC.

Megantic argues that this changes the practical meaning of discoverability for retailers. Instead of relying only on web pages designed for people, brands also need machine-readable product information, consistent policies and structured content that AI systems can process reliably.

Retail Response

The foundations of this work are familiar, the agency says. Site architecture, category structures, product data and authoritative content still matter, but they now need to be prepared for AI interpretation as well as human browsing.

One of the whitepaper's central arguments is that underlying data is becoming a storefront in its own right. That reflects a broader shift in digital marketing, where the customer journey may begin and end inside an AI tool rather than on a brand's own site.

“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 issue is not whether AI search will grow, but how quickly it will become a normal part of online shopping. The report says brands that invest early in structured product data and AI-readable content are more likely to be surfaced by large language models, while those that do not may be ignored even if they remain visible in traditional search results.

Megantic also points to growing competition among AI platforms and search providers. It cites figures showing Google still accounts for the largest share of search traffic, though AI tools are gaining ground, with ChatGPT leading that category and services such as Gemini and Claude also attracting users.

OpenAI and Anthropic are both planning a local presence in Sydney, adding to the sense that Australia is becoming a more active market for AI products and services. That expansion is expected to increase use of AI-led discovery tools among consumers and place more pressure on brands to ensure their content can be understood by those systems.

Jeremy Hanger, General Manager at Megantic, said the effects are already visible. “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,” he said.