AI Vs Search Engines: How ready are Indian brands for the shift?

The rise of AI-powered conversational search is challenging the traditional search engine model. This shift is significantly altering the digital marketing landscape and how brands connect with consumers. For Indian brands to remain competitive, they must adapt their strategies for search visibility and consumer engagement in this evolving environment.

Large language models (LLMs) can be touted as the new gatekeepers of the web, capable of delivering direct answers and reducing the need for users to click on websites. This shift will have a profound impact on traffic. It is estimated that brands may experience a significant drop in search traffic within three years. Gartner predicts that organic search traffic could decline by 50% or more as consumers increasingly turn to generative AI-powered search. By 2026, search engine traffic may drop by 25% due to AI-driven answer engines like ChatGPT and Google’s Search Generative Experience, posing challenges for SEO and PPC strategies by reducing website visits and increasing advertising costs.

In November last year, Perplexity launched an AI-powered shopping assistant. This new AI-driven shopping experience makes product research and purchasing more seamless. The shopping experience is currently US-exclusive, with expansion plans underway.

For CMOs, the challenge is twofold: ensuring their brands remain discoverable in AI-powered search landscapes while leveraging AI tools to optimize marketing efforts. From conversational AI and machine learning-driven content strategies to adapting for generative search experiences, staying ahead requires a data-driven, agile approach.

So, how can brands future-proof their marketing strategies? What role will AI play in shaping consumer journeys? Adgully explores the evolving search landscape and the strategic shifts CMOs must embrace to thrive in an AI-first world.

Shubhranshu Singh, CMO, Tata Motors CV, emphasises that Indian brands must embrace AI-readiness as an imperative rather than an option. AGI Generative AI is the search space that can have a transformation impact on brands. Consumers are slowly changing their search behaviour, they are looking for answers, and not search results.

Singh observes that search tools like ChatGPT and Perplexity AI are evolving from query-based platforms to intent-driven, conversational companions. This shift demands a recalibration of how brands position themselves digitally.

According to Singh, some imperatives are:

• Ensure brand content is discoverable by AI systems through well-organized, machine-readable data. SEO for answer engines is equally important now.
• AI allows brands to create dynamic content tailored to micro & niche audiences. Given India's linguistic diversity, investing in tools that align content with cohorts is important, including the one with vernacular languages.
• Predictive analytics and real-time optimization through AI will enhance media buying efficiency and ROI. This is a function of ad deployment platforms.
• Generative AI’s rise has its risk as well. Brands must prioritize authenticity and transparency. Misinformation risks can damage trust. Clear guidelines on AI-generated versus human-curated content will be essential.

Singh adds that Indian brands that anticipate this shift and align their strategies with AI-powered ecosystems will maintain their competitive edge.

As technological innovation continues to reshape the market landscape, Indian brands must embrace AI to remain innovative, competitive and stay ahead, points out Ashish Tiwari, Chief Marketing Officer, Home Credit India. With the rise of generative AI-powered search, Tiwari adds, there is going to be a fundamental shift in marketing strategies.

“For CMOs, prioritizing semantic search by creating high-quality content that addresses user queries and aligns with search intent is essential. It is essential to optimize for conversational queries, emphasizing natural language to cater to voice search and AI assistants. Another powerful way to leverage AI is for content creation, allowing brands to scale their efforts while preserving a consistent brand voice. Customer experiences can also be personalized by tailoring marketing messages to individual preferences. Lastly, staying ahead requires continuous monitoring and adaptation to emerging AI trends for long-term success,” he explains.

Industry expert Amit Gujral explains that AG-AI, by design and intent, is about expanding reach with minimal effort, ultimately boosting productivity. He draws a comparison with the pre-digital search era, where gaining awareness was significantly more challenging and reach was limited.

“AI-powered search enhances traditional search by not only retrieving basic information about a topic or item, but also incorporating behavioural patterns, contextual nuances, and relevant features. This results in a more intelligent and evolved knowledge system. Brands should embrace AI-powered search as it allows them to convey richer information and a deeper understanding of their products and brand persona to consumers—far beyond what traditional search can offer,” Gujral adds.

Customer journeys

Generative AI will play a significant role in shaping the future of customer journeys, particularly in influencing purchasing decisions, and brands should be leveraging this technology to stay ahead of the curve.

Amit Gujral explains that AG – Generative AI, as the name suggests, is the fusion of multiple generated insights on a given topic, providing users with a broader range of results and choices beyond their own thought limitations.

While the Consumer Decision Journey – moving from Awareness to Consideration to Purchase – remains a classic framework, the strategic use of Generative AI at each stage can enhance the process by delivering more evolved and insightful knowledge to customers.

Ashish Tiwari explains that Generative AI is poised to revolutionize customer journeys by offering more personalized and on-the-go experiences, significantly influencing purchasing decisions. According to him, this transformation includes customized product recommendations, delivering highly relevant suggestions based on individual preferences and buying intent assembled based on research breadcrumb data.

“AI chatbots and virtual assistants will enhance interactive product discovery, enriching the customer experience. Real-time dynamic content generation will drive personalized ads and marketing campaigns, while 24/7 AI-powered customer support will ensure timely assistance, boosting satisfaction. Additionally, predictive analytics will enable brands to engage customers proactively with tailored offers based on anticipated behaviours. To harness the potential of AI effectively, brands must invest in robust data infrastructure and adopt suitable AI tools. Maintaining a strong focus on customer experience is essential, ensuring a balance between automation and human interaction. Experimenting, innovating, and testing new AI technologies will drive success. Additionally, addressing ethical issues such as data privacy and bias management is crucial for responsible AI adoption,” says Tiwari.

Shubhranshu Singh predicts that Generative AI is set to redefine customer journeys by enabling hyper-personalization, predictive engagement, and seamless experiences, impacting awareness to conversion in one linear spectrum.

• The ability to craft personalization:The AI system will craft personalized narratives for consumer cohorts, offering tailored communication and recommendations and bundling up curated experiences.
• Amp up consideration:Tools powered by AI will analyze vast datasets to provide unbiased, intent-driven insights to customers, streamlining decision-making processes. Brands must work towards achieving a unified view of the consumer which can happen if they feed these tools with accurate and compelling information. Humans will supervise more and do less rhetorical work.
• Dial-up Conversion and improve Checkout:AI-enhanced chatbots and virtual assistants will simplify transactions and create frictionless paths to purchase. Integration with dynamic pricing models could further drive conversions based on the audience data enabling better landing to conversions.
• Always on Automated Engagement:Generative AI will enable personalized follow-ups, automate marketing proactive service, and community-building efforts, creating a deeper emotional bond with customers.

In essence, Singh adds, brands leveraging AI to create seamless, intuitive, and personalized experiences will thrive in this competitive era. Generative AI isn’t just about efficiency; it is about reimagining customer relationships at scale.