AI discovery drives confidence and spend

New findings from the Croud Consumer Index: AI, LLMs and the Next Frontier of Search show that shoppers using AI tools like ChatGPT and Gemini for product research are not just finding different brands; they’re spending significantly more. This uplift isn’t about affluence, but about confidence. As AI becomes a trusted decision partner, it’s giving consumers the reassurance to up their basket value.

Croud’s research identifies two rapidly diverging shopper types: AI Adopters and AI Rejecters. Adopters are more optimistic about their finances, use LLMs for product research and discovery, and are more confident in their AI-influenced purchase decisions, while rejecters are holding back from adopting AI tools for various reasons.

The new front door to retail discovery

AI tools are no longer supplementary search aids; they’re fast becoming the default environment for product discovery.

• 1 in 6 AI Adopters now complete their entire discovery journey within an AI tool.
• 61% of consumers expect to search for most products using AI within five years.
• 34% of AI users turn to AI tools “as soon as [they] start thinking about buying something in this category”, demonstrating how LLMs are helping people solve problems before they even get to brand and product discovery.

AI Adopters find AI discovery more personal, more efficient and easier to navigate than traditional search. Instead of sifting through countless tabs, they receive curated recommendations tailored to their needs.

This shift means the new imperative for CMOs is AI-first discovery: optimising content, tracking LLM mentions, and building authority in the digital environments that feed AI recommendations, to avoid being cut out of the funnel.

The confidence premium: Why AI users spend more

Perhaps the most striking finding from Croud’s research is the uplift in spend among AI Adopters. Basket value is, on average, 83% higher (£260 vs. £142) amongst AI users than non-AI users across categories including outdoor clothing, appliances, and sportswear.

This premium holds across income brackets, proving it’s not about affluence; it’s a behaviour shift rooted in confidence. As shoppers use AI tools more, their confidence grows, and their level of trust in LLMs to identify the right products positively impacts purchasing. This uplift in basket size is driven by:

• Trading up: 58% of consumers said that “AI tools currently/would inspire [them] with product ideas [they] wouldn’t have considered otherwise”, suggesting they are being influenced to consider more premium equivalents.
• Alternatives: 54% agree “...that AI can help [them] look for new brands, which [they] would otherwise find difficult”, meaning they are considering different brands and products than originally intended.
• Complements: 59% agree “when [they] search for products with AI tools, [they’re] more likely to add products to [their] basket.”

The uplift is particularly strong in categories where choices feel complex or high-stakes, such as appliances, outdoor gear and sportswear. AI gives people the confidence that they’re making the right choice.

What it means for brands: Four priorities

With AI tools now playing a critical role in driving product discovery, confidence, and basket size, how can marketers best adapt to this shift?

1. Monitor and build LLM visibility:

With AI increasingly being the new entry point to discovery, brands must ensure they’re showing up in LLMs. Marketers can use tools like Croud’s BrandCI to track mentions and perception, and optimise for LLM visibility.

2. Maximise authority:

With growing trust in AI tools’ recommendations, brands should invest in building authoritative content, as well as using PR, reviews, and forums, to maximise their authority in environments cited by AI tools.

3. Continue investing in brand:

Building a strong brand is as important as ever, even as the touchpoints in customer journeys evolve. Brands should continue to invest in brand media to influence both LLMs and consumers.

4. Capitalise on growing basket size:

With AI discovery encouraging higher spend, brands should take advantage of this by demonstrating range, and showcasing styles and extra products.

AI is becoming a catalyst for consumer confidence, and with it, higher spending. As discovery increasingly starts in AI tools, brands must prioritise visibility, authority and relevance to remain competitive. The confidence premium is real, growing and redefining how consumers decide what’s worth their money. The brands that act now will be the ones AI recommends - and shoppers choose - first.

The opinions expressed here are those of the authors and were submitted in accordance with the IPA terms and conditions regarding the uploading and contribution of content to the IPA newsletters, IPA website, or other IPA media, and should not be interpreted as representing the opinion of the IPA.