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The Northern European newsletters deliver quarterly industry insights to help your business adapt, evolve, and respond—as if on intuition



The new era of sentient e-commerce

To be honest, it was about time. For too long, eCommerce search and product discovery, even as we look towards 2025, has often felt like a relic – a digital equivalent of going through poorly organized shelves. Sure, we've optimized keywords and refined filters, but the core interaction has remained stubbornly primitive. 

This is until now, that a seismic shift has stormed its way through the door: The convergence of Generative AI (GenAI), increasingly sophisticated autonomous AI Agents, and orchestrated Multi-Agent Systems (MAS) is positioned to dismantle and rebuild the entire product discovery paradigm from the ground up. As detailed in forward-looking analyses from firms like Deloitte (Schmidt & Savic Vucenovic, 2025) and tech analysts at OnCrawl (Izzo, 2025), AI is birthing a more intuitive, almost sentient, commercial interface that could fundamentally alter consumer behavior and competitive dynamics in Retail and Consumer Goods.

For those of us who've seen and navigated big digital transformation breakthroughs, the trajectory is unmistakable: we are rapidly moving from a model where users actively hunt for products to one where intelligent systems dynamically construct and present solutions around complex, often unarticulated, human needs.

The integration of GenAI, Agentic AI, and Multi-Agentic Systems into e-commerce search and product discovery represents a fundamental reimagining of how consumers will connect with products and how brands will work to facilitate that connection. 
 

The search box tyranny, overdue for a change

The limitations of traditional e-commerce search are well understood by experts: its inability to gracefully handle ambiguity, its reliance on precise user input, its failure to grasp holistic intent (the "why" behind the "what"), and the resulting cognitive load placed on the consumer. A consumer that is already overwhelmed by “a seemingly endless number of choices, messages, ads and claims” (Crowley et al, 2025), and that will definitely walk away from a purchase when the information overload and inefficient experience reduce their confidence.  

Even the most successful brands have a conversion below 2% on digital platforms (Adobe, 2023 & Speed Commerce, 2025), showing that this friction is a tangible and significant leakage point for revenue and customer loyalty. In an era of hyper-personalization expectations, the status quo is an active impediment to growth. What if AI can drive a significant increase on this number? The result for the big players is a multi-million revenue growth.

The AI-driven evolution of discovery, as explored by industry voices like Tredence (Editorial, 2025), is therefore not a speculative bet, but a critical strategic pivot for survival and differentiation.

Deconstructing the tech triad

AI integration has the power to transform customer experience (external-facing changes) and operational efficiency (internal-facing changes) alike. However, it would be unrealistic to blissfully ignore the current hurdles surrounding its implementation – this is, after all, new territory for almost every industry.

Understanding the distinct yet interwoven roles of these technologies is key to grasping the scale of this transformation: Let’s review them one by one, considering their external and internal impact while timely highlighting potential challenges.

1. Gen AI: Semantic and narrative wizard

"I truly understand you, and I’ll craft a compelling narrative just for you



 

Undoubtedly the most well-known within our triad, GenAI's profound impact extends beyond better chatbot interactions. From an external user-facing perspective, it has the power to transform both product discovery and product narratives. These, in turn, can introduce insight-driven automation in internal processes across the value chain. 

When it comes to transforming product search and discovery, GenAI’s true potential lies in its capacity for deep semantic inference – understanding not just the explicit query, but the implicit context, underlying needs, and even the emotional drivers of a search. It can navigate from "I need a dress for a wedding" to inferring formality, seasonality, potential cultural considerations, and the user's aesthetic based on minimal cues. 

Crafting dynamic and personalized product narratives is another of its biggest qualities. GenAI can dynamically synthesize information from disparate sources (product specs, user reviews, style guides, real-time trends, user's own data) to create on-the-fly, personalized product narratives, including contextualized comparisons and holistic solution bundles. We are not talking about generating better static product descriptions here. This could mean a complete shift in Product Information Management (PIM) strategies, from managing pre-defined marketing copy to curating rich, structured attribute data that GenAI can then weave into countless bespoke narratives.

What about increasing operational efficiency? Well, dynamic personalized value chains are not far away with GenAI. AI-driven insights from discovery could feed directly back into dynamic assortment planning, on-demand manufacturing, and hyper-personalized marketing at a scale previously unimaginable, creating a truly responsive value chain.

A critical, but sometimes non-obvious, challenge for GenAI is the potential for "confident inaccuracies" or "hallucinations" when dealing with product specifics. Ensuring factual accuracy, maintaining brand voice consistency across millions of generated interactions, and providing users with verifiable information sources for AI-generated claims will be paramount for creating and maintaining trust. 

2. Agentic AI: Autonomous commerce navigator 

"I will solve this shopping mission for you

 

Agentic AI takes GenAI's understanding and gives it sophisticated executive function: The ability to plan, act, and learn within the e-commerce ecosystem on behalf of the user, a concept gaining traction in expert discussions like those from OnCrawl (Izzo, 2025), and Singulier (Ferel, 2025). While the potential impact on customer experience is almost self-explanatory, this change in paradigm would also require deep adjustments in the way businesses market their products.

Agentic AI can transform the shopper experience from users inputting a search term on the search box tyrant, to users simply delegating a whole shopping mission to a trusted AI agent. Picture this: Your business trip is coming up and you don’t have the time, patience, or mental capacity to figure out what you are supposed to wear… so you just delegate the task to you AI Agent – "Plan my wardrobe for a week-long business trip to Singapore next month, factoring in the climate, my usual style, a formal dinner, and my preference for sustainable materials, all within a $X budget, and ensure compatibility with the shoes I bought last March." The agent then orchestrates the entire discovery, shortlisting, and even the initial checkout process. You make the final decision.

A profound yet less-discussed implication is how brands will need to "market" their products and value propositions to these AI agents. If a user's personal AI agent becomes their primary filter and decision-support tool, traditional D2C marketing strategies focused on capturing human attention may become less and less effective. Ultimately, the brand's digital presence will become less about having an excellent website, and more about its machine-readable semantic footprint.

Ensuring your brand is discoverable and favorably considered by these autonomous agents will become a new frontier of digital marketing, transforming internal and external processes alike. 

The technical side of Agentic AI implementation can pose the biggest challenge, as brand will need to expose rich, structured data and potentially even "negotiation parameters" via sophisticated APIs. Naveen Sharma, Global Head of AI and Analytics at Cognizant, postulates that the key lies in “operationalizing AI through a flexible, scalable framework” (Gorelick et al, 2025), something the company is helping their clients achieve through their recently released Agent Foundry methodology. 
 

3. Multi-Agentic Systems (MAS): Complexity orchestrator 

"I will collaborate with other AI agents to carry out complex processes

 

The pinnacle of the AI evolution lies in MAS, where a "society of minds" (specialized AI agents) collaborate to deliver an unparalleled discovery experience. 

While a single Agentic AI can personalize and automate tasks for individual users, MAS enables customers to benefit from a team of specialized agents working behind the scenes. This orchestrated intelligence creates a more fluid, proactive, and deeply personalized shopping journey that no single agent could deliver alone – MAS is the result of Tech industry experts realizing and tackling the limitations of single AI Agents, as described by Cognizant’s CTO AI, Babak Hodjat (Mathews, 2024).

Imagine a customer journey in which one agent (The Empath) understands your mood and preferences, another (The Product Expert) scans thousands of products to find the perfect match, while a third (The Logistics Agent) checks what’s in stock nearby and how fast it can be delivered. A fourth agent (The Personal Stylist) helps you style your choices based on your own aesthetic, and a fifth (The Bias Mitigator) ensures your decisions aren’t being swayed by hidden biases or marketing tricks. This isn’t science fiction…It’s the natural evolution of AI in commerce.

To deliver these MAS-enabled customer experiences, retail businesses must undergo a strategic and operational transformation. A key shift will entail moving away from rigid workflows toward modular systems where specialized AI agents can ‘talk’ to each other and coordinate across functions like inventory, pricing, logistics, and customer service. Agility and cross-functionality will have to be embraced while processes and roles are redesigned to support the new set up.

The biggest challenge in MAS, as highlighted in discussions around agentic AI hurdles (Polak, 2025), is less about individual agent capability/implementation and more about the orchestration, governance, and ethical alignment of the entire system. How do you ensure that the emergent behavior of dozens of interacting agents consistently aligns with both user benefit and brand values? How do you debug or assign responsibility when a multi-agent decision leads to a poor outcome? Establishing robust frameworks for inter-agent communication protocols, conflict resolution, and transparent decision-logging is a monumental but critical undertaking.

If the travel sector can do it, so can retail

The travel industry, a high-stakes environment of perishable inventory and complex decision-making, has been an unwilling but effective proving ground for sophisticated AI implementation. 

Retail must learn more than just the surface-level parallels, drawing from analyses like those from Mize (Izchak, 2025) and tourism AI specialists at IATourisme (Bellerose, 2025):

  • Hyper-personalization even under constraint: Travel AI doesn't just personalize, it personalizes against a backdrop of rigidly constrained and dynamically priced inventory (e.g., that one remaining window seat, that specific hotel room type during peak season). The algorithms that are able to balance customer preferences, inventory availability, cost, and revenue maximization offer a blueprint for retail's own challenges with limited-edition items, flash sales, or highly specific attribute-based demand.

  • Graceful failure and backup plan: Travel AI systems frequently encounter "no perfect match" scenarios or unexpected disruptions such as flight cancellations or hotel overbookings. The sophistication of these systems lies in being able to go beyond the initial match, and into alternative generation and proactive problem-solving during failures. Retail discovery engines will inevitably face similar issues, so learning from travel's recovery protocols is crucial.

  • The value of maintaining user’s perceived control: Early travel chatbots that were overly rigid or failed to provide escape hatches to human agents created intense frustration and led to countless sales losses. Maintaining perceived user control during AI interactions and facilitating seamless AI-to-human handoffs is of critical importance, especially when dealing with high-consideration purchases or complex service issues. AI should not try to replace humans, but augment them.

  • Data Ecosystem Interoperability: The travel industry's Global Distribution Systems (GDS) and subsequent API layers, while complex, underscore the necessity of data interoperability standards for AI to effectively query and aggregate options across myriad suppliers. Retail, with its often siloed brand and retailer data, faces an even steeper climb but must prioritize a similar path toward semantic data sharing for agentic systems to truly flourish across the ecosystem.

Plugging in tech? You're rewiring your business

As we have hinted across this article, the transition to an AI-driven product discovery model presents profound strategic challenges that demand more than technological solutions. It requires a new way for Retail & Consumer Goods companies to operate and do business.

To get this out of the way – yes, it does also require a huge technological shift. For years, the focus has been put into Big Data and collecting sheer volume raw information. This is not enough for the AI-era: Data will be an asset only if it is meticulously curated, semantically rich, and interconnected across product, customer, and contextual data domains. This requires a fundamental rethinking of Product Information Management (PIM), Digital Asset Management (DAM), and Customer Data Platform (CDP) strategies towards creating “AI-ready knowledge graphs”, or what’s the same, structured and interconnected data models that AI can understand and leverage for decision-making.

It's fair to say that leading with AI has a big technological component but isn't just an IT upgrade. It requires reskilling talent, redesigning workflows (e.g., how merchandisers interact with AI-driven assortment planning), and fostering an organizational culture of data-driven experimentation and human-AI collaboration (likely a big shift from any current company culture). Non-tech changes surrounding this tech implementation are a central topic of discussion among industry leaders, including in big forums such as World Retail Congress (Brien et al, 2025).

Now let’s say a company invests in rethinking its technology, processes, and talent, and implements one or more of the AI technologies discussed to improve product discoverability in eCommerce. How can they measure ROI? Definitely not through traditional last-click models. The impact of superior product discovery is often indirect and cumulative – reduced returns, increased customer lifetime value, enhanced brand perception. Attributing ROI through traditional models will be hardly adequate. New frameworks for measuring the value of "frictionless discovery" and "AI-assisted decision satisfaction" are needed in the dawn of a non-linear world.

But ROI is not the only framework to be redefined. As AI agents become more adept at understanding and influencing consumer choice, deep ethical questions arise. What is the AI's primary fiduciary duty – to the user, the platform, or the brands whose products it recommends? How do we ensure AI-driven persuasion doesn't become manipulative, especially for vulnerable consumers? Putting in place new, specific and actionable Ethical frameworks is non-negotiable.

As complex as their implementation is, foundational AI models are becoming more and more accessible. Retail leaders must think beyond “adopting it first”: Soon, when AI is broadly engrained into all major companies, the competitive advantage will stem from the quality of proprietary data sets, a truly equipped workforce, unique agent orchestration strategies and the cultivation of unique “AI brand personalities” that resonate with consumers and provide consistently good interactions. Long-term strategies over short-term gains.  
 

A call to action for the brave

For leaders in the Retail & Consumer Goods industry, AI isn't a trend to watch passively. Consumer expectation is already shifting and demanding “hyper-relevant, personalized search experiences - whether they type, speak, or even upload images to find what they need” (Izzo, 2025).

To keep up with consumers and stay at the forefront of commerce, industry leaders will have to strategically lean in, experiment and invest in foundational data and talent to build the future. The journey requires courage and a willingness to rethink long-held assumptions, but the prize is a vastly more relevant and engaging commerce experience, driving revenue and brand awareness for the companies that succeed. 

An early sign of success, and a sneak peek into AI’s full potential, is shown by the 30% increase in conversion rates seen by retailers who implemented AI-powered search in their eCommerce (Izzo, 2025). For an industry that has been competing for, investing in, and obsessing over that 2% plateau at the bottom of the conversion funnel, an increase of this magnitude is a big leap forward (and directly translated into dollar value). 

Data supports there’s more to it: In 2025, 17% of shoppers reportedly bought a product because it was recommended by an AI shopping assistant or chatbot (Bonderud, 2025) – imagine what this could represent, at the awareness level, for a brand that has optimized their product marketing to capture AI’s attention. Additionally, Cognizant’s Agent Foundry framework has enabled clients to automate over 50% of post-purchase retail interactions (Cognizant, 2025), cutting order processing time by half and driving loyalty after conversion. 

It’s clear that the AI Tech Triad has potential to impact the end-to-end funnel for the companies daring to dive in. 

 

Retail leaders don’t need to walk this path alone. The complexity of integrating GenAI, Agentic AI, and MAS into a coherent, value-generating ecosystem requires more than internal ambition. Evaluating and selecting the right partners to enable end-to-end AI implementation is a tangible way to leap into the future with managed risk. Working to provide acceleration in the AI space is Cognizant: The consulting firm has developed a strong AI offering, supporting clients on developing or selecting the right AI technology for their specific use case (Apodaca, 2025), reengineering processes around AI and driving the people-side of organizational changes (O’Donoghu, 2025), all while actively considering the ethicality of every action (Mathews, 2025).

With the right partner in place, the focus shifts to execution. Implementing GenAI, Agentic AI, or MAS in eCommerce is not a plug-and-play exercise. It requires a clear understanding of how these technologies influence customer journeys. It also demands a redefinition of how product, customer, and contextual data is structured, a new framework to measure value, and a willingness to drive the organizational changes needed to unlock it. It’s organizational rewiring.

The shift is already underway. The question is no longer whether AI will change product discovery, but who will shape that change (and who will be shaped by it).

References

Cognizant Research

Apodaca, C., & Popuri, V. (2025, June 30). A successful AI strategy starts with selecting the right type of AI. Cognizant.

Bridgwater, A. (2025, January 20). Cognizant taps nerve with neuro AI multi-agent accelerator. Forbes. 

Cognizant AI lab. Cognizant. (n.d.). 

Cognizant Data and AI Offering. Cognizant. (n.d.). 

Cognizant Agent Foundry. Cognizant (n.d.). 

Gorelick, B., Schneider, C., & Vasisht, R. (2025, July 10). Cognizant introduces agent foundry: Powering Agentic AI at enterprise scale. Cognizant News. 

Hodjat, B. (2025, February 12). Single agent vs. multi-agent. Cognizant. 

Mathews, A. (2024, October 3). Risto Miikkulainen: I’d rather trust an AI that knows its power and chooses not to use it. AIM Media House. 

O’Donoghue, O. (2025). What will the impact of Gen Ai on the workforce be?. Cognizant. 

 

Other Research

Bellerose, P. (2025, January 30). The 5 AI trends that will transform tourism in 2025. IATourisme. 

Blackader, B., Cheta, O., Kosub, M., & Johnson, C. (2025, June 11). The future of customer experience: Embracing agentic AI. McKinsey & Company. 

Bonderud, D. (2025, April). Artificial Intelligence in ecommerce: Examples for brands. Salsify. 

Bonderud, D. (2025, April 22). How generative AI in Ecommerce is shaping product search. Salsify. 

Brien, C., Ostalé, E., Bay, T., & Lau, M. (2025b, May 13). Keynote panel: Leading the AI revolution. World Retail Congress 2023. 

Crowley, J., Wright, O., Standish, J., Blackburn, E., & Weiss, E. (2024, April 28). The Empowered Consumer. The Empowered Consumer. 

Dadhich, P. (2025, March 25). Agentic experience just changed the eCommerce game in 2025!. Experro. 

Dadhich, P. (2025, April 9). What is multi-agent AI System & Why It Matters in retail?. Experro. 


Authors


Stefano Montanari

Head of Retail and Consumer Goods Consulting

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Ana Giacone

Transformation Management Consulting (OCM)

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