The Consumer As An Algorithm: How AI Is Changing Perceptions and Purchase Decisions

Up until now brand awareness, strategy positioning and effective communication campaigns have shaped brand value and determined market success. But this is no longer valid. What you say about yourself is no longer how people perceive and value you. 

Building trust has become a key success factor. Transparency, consumer testimonials and experiences create digital reputation. And that becomes the source of the AI algorithms in analysing, processing and delivering information about you or your brand.

When you ask on your internet browser if you can trust brand A, the outcome does not necessarily reflect your marketing campaign or company sources. It flows from the consumer perspectives rooted in experiences that are then digested by the AI bots such as the LLM’s (Large Language Models) whose outputs are  becoming ever more credible in consumers’ eyes and in guiding their future decisions. And this entails risks because the feed data can be manipulated and this for sure will affect what the AI bots write about the brand. One can be critical about the future implications of the new reality which is shaking business model foundations. But it is there and you either cope with it or face becoming a dinosaur.

When considering communication processes, its purpose needs to be double faced: emotional for consumers but also logical for machines. One needs to integrate AI bots in the communication targets. SEO strategies should deliver not only to search engines but also to GEO’s (Generative Engine Optimization) which are no more than conversational models. It also means that a poorly described product or one which shows inconsistent data is overlooked by AI agents.

The perception of a brand’s value today is built into forums that the brand doesn’t control, such as Reddit, social networks such as TikTok – or portals such as DECO Consumers’ Association in Portugal where consumers feed in their own evaluations. These platforms are avidly read before the potential consumers or users take decisions. There are efficient tools for omnichannel ticketing / addressing costumer complaints such as Freshdesk or Zendesk that companies cannot ignore any longer.

Auditing your brand’s digital presence and integrating AI tools for digital reputation analysis will become mandatory to design any future communication strategy. One needs to be prepared for new interfaces between the consumer and selling channels whether an e-commerce platform or even the supermarket shelves. These AI agents will interact with websites and ultimately can command purchases on behalf of the consumer.

Luis Garcia
Managing Director, Green Seed Portugal

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