marketingartificial intelligence
AI may shape the search, but retail media still wins the sale
By Brendan Straw, Country Manager, Shopfully Australia
AI is rapidly changing how Australians shop. It is making product discovery faster, easier and more personalised, and giving consumers new ways to compare prices, assess options and narrow their choices.
But discovery is not the same as conversion. Shopfully’s 2026 State of Shopping research shows that while AI is becoming a powerful tool for comparison and recommendation, the final purchase decision still depends on something more immediate: whether the product is available nearby, competitively priced and relevant in that moment. That is where retail media matters most.
AI is changing how shoppers discover
Australian shoppers are more deliberate than ever. They are price-conscious, research-driven and increasingly comfortable using digital tools to stay in control of what they spend.
Digital has long played a role in this behaviour, with around 81% of Australians researching products online before purchasing in-store. AI is now accelerating this shift. It removes friction from the research phase, giving shoppers instant access to comparisons, tailored recommendations and real-time alternatives.
Our research found that 71% of shoppers are already using AI to compare prices across retailers, 43% use it to track price drops, and 38% rely on AI for personalised product recommendations. For retailers, this wider top of funnel creates a more competitive and complex path to purchase.
Retail media is where decisions are won
As AI expands the discovery phase, it also makes it easier for shoppers to delay commitment. Shopfully’s research shows 67% of shoppers are spreading their spend across multiple retailers to secure better value. Loyalty is weaker, comparison is easier, and the route to purchase is no longer linear.
That creates a new challenge for retailers. It is no longer enough to be discovered. Retailers also need to win the decision at the point where a shopper is ready to act.
Retail media plays that role by turning intent into action. It gives retailers a way to reach high-intent shoppers with information that is locally relevant and immediately useful: whether a product is in stock nearby, available at the right price or backed by a timely promotion. In a shopping journey shaped by AI, those details are often what close the sale.
Turning AI‑led discovery into real‑world sales
To convert AI-led discovery into sales, retailers need to focus on three things.
First, they need to be visible at the moment of decision, not just the moment of discovery. As shoppers compare options across channels, brands must show up when consumers are actively weighing where to buy.
Second, real-time retail data needs to be connected to that experience. Inventory, local store availability and current pricing should not sit in separate systems if retailers want shoppers to move from interest to action quickly.
Third, promotions need to be more dynamic and more relevant. In an environment where shoppers can compare alternatives instantly, generic messaging is easier to ignore. Retailers need offers that reflect intent, timing and location if they want to convert consideration into purchase.
Just as importantly, the path from digital discovery to store visit must feel seamless. The less friction there is between finding a product and buying it, the more likely a shopper is to convert.
The future belongs to retailers who can bridge the gap
AI is reshaping the top of the funnel, but it is also making competition harder. The easier it becomes for shoppers to compare products, prices and retailers, the harder it becomes to win a sale on visibility alone.
The retailers that succeed will be those that can bridge discovery and decision making. AI may influence what shoppers consider, but retail media is what helps turn that consideration into action with the right offer, in the right place, at the right time.
