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The New Search Funnel: Why People Ask AI First (and What Brands Should Do About It)

Consumer search behavior is fundamentally shifting. Learn how AI assistants are becoming the new front door to discovery - and what it means for your brand strategy.

S

Sponsy Team

January 1, 2026·11 min read
Industry Insights
The New Search Funnel: Why People Ask AI First (and What Brands Should Do About It)

Introduction

Something fundamental has changed in how people search for information, products, and services. For the past two decades, the pattern was predictable: open Google, type a query, scan blue links, click through to websites.

Not anymore.

Today, millions of people are skipping traditional search engines entirely. Instead, they're asking ChatGPT, Claude, Perplexity, or their favorite AI assistant. They're getting direct answers, personalized recommendations, and conversational guidance - without ever visiting a brand's website.

This isn't a trend. It's a paradigm shift. And if your brand isn't prepared, you're about to become invisible to a growing segment of high-intent consumers.


The Old Search Funnel Is Breaking

The traditional search funnel looked like this:

Traditional Funnel:

Brands optimized for this funnel with SEO, paid search ads, landing pages, and conversion optimization. The goal was simple: rank high, get clicks, convert visitors.

But AI assistants are collapsing this funnel.


The New AI-First Search Funnel

Here's what's actually happening now:

AI-First Funnel:

Notice what's missing? Your website. Your SERP ranking. Your carefully crafted landing pages.

The AI assistant has become the intermediary - the new gatekeeper between consumers and brands.


Why People Prefer AI-First Search

The shift isn't random. AI assistants offer genuine advantages over traditional search:

1. No Link Scanning Required

Traditional search forces you to evaluate 10 blue links, guess which might have your answer, and click through multiple sites.

AI search gives you the answer directly, synthesized from multiple sources.

2. Conversational Refinement

With Google, refining your search means typing a new query and starting over.

With AI, you can ask follow-up questions naturally:

3. Personalized Context

AI assistants remember your conversation context. They know you mentioned you're a student, or that you prefer eco-friendly products, or that you're shopping for a gift.

Traditional search has no memory. Every query is isolated.

4. Decision Support, Not Just Information

Search engines give you information. AI assistants help you make decisions.

They compare options, explain trade-offs, and guide you toward the best choice for your specific situation.


The Data: How Big Is This Shift?

The numbers are striking:

Usage Growth

Search Behavior Changes

Intent Signals

People aren't just asking trivial questions. They're using AI for high-intent searches:

These are buying signals - and they're happening inside AI assistants, not on your website.


What This Means for Brands

If consumers are asking AI instead of searching Google, brands face three critical challenges:

Challenge #1: Invisibility

If your brand isn't mentioned by AI assistants, you don't exist in this new funnel.

Unlike Google, where you can pay for ads or optimize for rankings, AI assistants make recommendations based on their training data, real-time web access, and contextual relevance.

You can't buy your way to the top of a ChatGPT recommendation.

Challenge #2: Loss of Control

On your website, you control the narrative, the design, the conversion path.

In an AI conversation, you have no control. The AI decides:

Challenge #3: Attribution Breakdown

Traditional analytics track the user journey: search → click → browse → convert.

With AI-first search, users might:

Your analytics show a "direct" visit with no attribution. You have no idea the AI assistant sent them.


What Brands Should Do About It

This isn't a problem to solve - it's a new reality to adapt to. Here's how forward-thinking brands are responding:

Strategy #1: Optimize for AI Discoverability

Just as you optimized for Google SEO, you now need to optimize for AI recommendations.

How to do it:

Example: A hotel chain ensures every property has:

Result: When users ask ChatGPT for hotel recommendations, their properties appear frequently.

Strategy #2: Become a Recommended Source

AI assistants cite sources. Be one of them.

How to do it:

Example: A SaaS company publishes an annual "State of the Industry" report with original data. AI assistants frequently cite this report when answering questions about the industry, driving brand awareness and authority.

Strategy #3: Enable AI-Friendly Transactions

Make it easy for AI-referred customers to convert.

How to do it:

Example: An e-commerce brand creates a /ai landing page specifically for AI-referred traffic, with:

Strategy #4: Participate in Conversational Commerce

The future isn't just AI recommendations - it's transactions happening inside conversations.

How to do it:

Example: A travel booking platform integrates with Perplexity's shopping features, allowing users to:

Strategy #5: Track AI-Driven Traffic

You can't optimize what you don't measure.

How to do it:

Example: A DTC brand adds a post-purchase survey question: "Did an AI assistant recommend us?" They discover 18% of customers used AI in their research - a segment they were completely blind to before.


The Opportunity: Conversational Monetization

Here's the exciting part: This shift creates new monetization opportunities.

For Publishers & AI App Builders

If you're building conversational AI experiences, you can monetize through:

This is where Sponsy comes in. We help AI app publishers monetize conversations through privacy-safe, contextually relevant recommendations - without storing transcripts or compromising user trust.

For Brands

Conversational commerce is the new frontier:


Case Study: How One Brand Adapted

The Brand: A mid-sized outdoor gear retailer

The Problem: Noticed declining organic search traffic despite maintaining SEO rankings. Couldn't explain where customers were coming from.

The Investigation: Added a survey asking about AI usage. Discovered 22% of customers had used ChatGPT or similar tools to research products before purchasing.

The Strategy:

  1. Created comprehensive, unbiased buying guides for each product category
  2. Ensured all product pages had detailed, structured specifications
  3. Encouraged customers to leave detailed reviews
  4. Partnered with AI-powered shopping assistants for sponsored placements
  5. Built a custom GPT for outdoor gear recommendations

The Results (6 months later):


Looking Ahead: The Next 3 Years

This is just the beginning. Here's what's coming:

2026: AI-First Becomes Mainstream

2027: Conversational Commerce Scales

2028: The Post-Website Era


Conclusion: Adapt or Become Invisible

The search funnel is being rewritten. AI assistants are becoming the new front door to discovery, research, and purchase decisions.

Brands that adapt will:

Brands that ignore this shift will:

The question isn't whether this shift will happen - it's already happening. The question is: Is your brand ready?


What You Can Do Today

Start with these three actions:

  1. Audit your AI presence: Search for your brand in ChatGPT, Claude, and Perplexity. What do they say about you?

  2. Optimize for AI discovery: Ensure your website has clear, structured, factual information that AI can easily parse and cite.

  3. Explore conversational monetization: If you're building AI experiences, consider how to monetize through contextual recommendations. Join the Sponsy waitlist to learn how.

The new search funnel is here. Time to adapt.

S

Sponsy Team

Strategy at Sponsy

Building the future of conversational AI monetization. Follow our journey and learn best practices for chatbot revenue optimization.