Bloomberg Businessweek: “AI's Impact on Retail and Consumer Behavior”

Date: December 30, 2025
Hosts: Carol Massar, Tim Stenovec
Guest: Kimberly Shenk, CEO of Novi

Episode Overview

This episode delves into the transformative role of artificial intelligence in the retail sector, focusing on how consumers’ shopping behaviors are rapidly changing and how brands are adapting to leverage AI-powered platforms. The conversation spotlights the soaring influence of AI agents like ChatGPT and Gemini on retail site traffic, and explores the strategies companies use to stand out in an increasingly data-driven landscape.

Key Discussion Points & Insights

1. AI-Driven Traffic Surge in Retail ([02:18]–[02:50])

• 520% Increase in AI-Driven Retail Traffic: Kimberly Shenk shares that AI-driven retail site visits during this holiday season surged by 520% compared to last year, signaling a dramatic shift in how consumers discover and buy products.
• Role of Novi: Novi helps brands become more discoverable and trusted by AI recommendation models (e.g., ChatGPT, Gemini, Claude) by optimizing their product data.

2. How AI Connects Brands & Consumers ([02:50]–[03:29])

• Beyond Simple Recommendations: Instead of traditional “if you liked this, try this” algorithms, consumers are now turning to conversational agents to outsource complex shopping tasks—ranging from research and discount hunting to personalized gift curation.
• Shenk explains:

  “Consumers now flock to ChatGPT or Gemini and ask questions to actually do their shopping. … They’re outsourcing a lot of their research … to the agent.” —Kimberly Shenk [03:29]

3. Novi’s Competitive Edge ([03:51]–[04:55])

• Competitors: Novi faces competition from both new tech upstarts and traditional data companies like Syndigo, Salsify, and NielsenIQ.
• Key Differentiator—Verified Trust:
  • Novi feeds verified and personalized trust signals—certifications, reviews, badges, and third-party testing—directly to AI models.
  • Products with these trust signals are chosen 259% more often than by random chance.

  “We found that products that have verified trust signals are selected 259% more often than random chance.” —Kimberly Shenk [04:36]

4. Productivity & Conversion of AI Traffic ([04:55]–[05:54])

• Direct-to-Brand Conversion Trend: While traffic from AI agents to retail sites is skyrocketing, key questions about conversion rates remain—AI platforms are not yet sharing this data.
• Novi’s Finding: ChatGPT shopping research answers sent consumers directly to the brand website 86% of the time; only 14% of this traffic went to big-box retailers.

  “ChatGPT shopping research answers sent consumers directly to the brand’s website 86% of the time…” —Kimberly Shenk [05:37]

• Implication: Brands are getting more direct-to-consumer engagement, potentially boosting sales and conversion.

5. The Changing Role of Category Management ([05:54]–[06:51])

• Shift in Consumer Trust: Where shoppers once relied on retailers like Target to curate product categories, they now trust AI agents to do the work.

  “Consumers are using AI as their category manager. … The consumer has shifted their trust to AI to do the research and curation for them.” —Kimberly Shenk [06:12]

• Holiday Shopping Insight: The trend played out powerfully over the holiday season, with strong use of chatbots for shopping. The industry is waiting to see if this translates into long-term conversion and whether purchases will predominantly happen on brand sites or retailer platforms in 2026.

6. Fundraising and Investor Mindset ([06:51]–[07:30])

• AI is Essential for Funding: Investors are hyper-focused on companies deploying AI, especially those developing AI-driven commerce “agents.”

  “If you are not involved in AI … that’s what is hot for investors and that’s what is raising money …” —Kimberly Shenk [07:04]

• “Agent at Commerce” is the buzzword attracting venture capital.

Notable Quotes with Timestamps

• On AI-driven shopping:

  “Consumers now flock to ChatGPT or Gemini and ask questions to actually do their shopping … outsourcing a lot of their research … to the agent.” —Kimberly Shenk [03:29]

• On verified trust signals:

  “Products that have verified trust signals are selected 259% more often than random chance.” —Kimberly Shenk [04:36]

• On direct-to-brand site traffic:

  “ChatGPT shopping research answers sent consumers directly to the brand’s website 86% of the time …” —Kimberly Shenk [05:37]

• On shifting trust from retailers to AI:

  “Consumers are using AI as their category manager… The consumer has shifted their trust to AI to do the research and curation for them.” —Kimberly Shenk [06:12]

• On investor trends:

  “If you are not involved in AI … that’s what is hot for investors and that’s what is raising money …” —Kimberly Shenk [07:04]

Key Timestamps for Reference

• [02:18] – Introduction to show, AI’s retail impact, guest introduction
• [02:50] – Novi’s technology, basics of AI-driven discovery
• [03:29] – Deep dive into consumer behaviors and AI
• [03:55] – Novi’s competitors and differentiators
• [04:36] – Effectiveness of trust signals in AI recommendations
• [05:37] – Data on direct-to-brand traffic via ChatGPT
• [06:12] – Changing consumer trust from retailers to AI agents
• [07:04] – Today's investor focus: AI and commerce agents

Engaging Takeaways

• AI is fundamentally changing the journey from product discovery to purchase. Consumers now rely on interactive agents as their trusted curators.
• Verified “trust signals” fed to AI recommenders significantly boost brand visibility and selection rates.
• Direct-to-consumer digital shopping is on the rise, with AI traffic increasingly skipping intermediary retailers.
• Investment capital is chasing companies leading the AI commerce revolution—especially those building actionable shopping agents.

This episode offers a forward-looking window into how AI is not just a retail play, but a transformative force for consumer behavior and business strategy heading into 2026.