AI Chatbots Recommend Physical Retailers Over Amazon
UBS researchers found that AI chatbots consistently recommend brick-and-mortar retailers like Walmart and Costco over Amazon for shopping queries.
Researchers at UBS found that AI chatbots, including ChatGPT and Claude, consistently recommend brick-and-mortar retailers over Amazon when users submit shopping queries. The findings, detailed in a research note released Monday, indicate that AI recommendation engines are emerging as a primary competitive front for retail brands.
The analysis showed that chatbots frequently steer shoppers toward physical chains such as Walmart and Costco rather than the e-commerce giant. This shift in visibility suggests that AI-driven search is gaining strategic importance in the retail sector.
In response to these trends, some retail and restaurant chains have begun establishing partnerships with leading AI developers. These companies aim to influence how AI engines generate recommendations to ensure their brands remain visible to consumers.
