AI search will capture $750B in spending by 2028, McKinsey reports

Artificial intelligence has fundamentally transformed how people search for information online, shifting from simple keyword queries to sophisticated, conversational interactions. This evolution represents more than just a technological upgrade—it’s reshaping the entire landscape of how businesses connect with potential customers.

The numbers tell a compelling story. According to McKinsey, a global consulting firm, 50% of internet users now rely on AI-powered search tools, and the firm projects that $750 billion in consumer spending will flow through AI search platforms by 2028. For businesses still operating with traditional search strategies, this represents both an urgent challenge and a significant opportunity.

1. The shift from keywords to conversations

Traditional search required users to think like search engines, crafting specific keyword combinations like “plumber Denver” or “ice cream near me.” AI-powered search flips this dynamic entirely. Users can now pose natural questions such as “find locally made ice cream near me with dairy-free options, indoor seating, and the highest ratings.”

This conversational approach works because AI systems understand context in ways that traditional search algorithms cannot. When someone searches for “best Italian restaurant,” AI can factor in their location, dining history, dietary preferences, and even the time of day to provide personalized recommendations. The system might automatically surface information about current wait times, menu prices, or whether reservations are required—details that would have required multiple separate searches in the past.

For businesses, this shift demands a fundamental rethinking of search engine optimization (SEO) strategy. Rather than focusing primarily on keyword density and technical SEO factors, companies must now prioritize creating content that answers the specific questions their customers are asking. This means developing comprehensive information about products, services, hours, pricing, and unique selling points that AI systems can easily access and understand.

2. Enhanced personalization and predictive capabilities

Modern AI search platforms don’t just respond to queries—they anticipate user needs. These systems analyze patterns in search behavior, location data, and personal preferences to offer suggestions before users even finish typing. A business traveler searching for “coffee” near an airport might automatically see results filtered for grab-and-go options with mobile ordering, while someone searching from a residential area on a weekend morning might see cafes with outdoor seating and brunch menus.

This predictive capability extends beyond individual searches. AI platforms can identify trending topics, seasonal patterns, and emerging customer needs, providing businesses with valuable insights about market demand. A restaurant might discover through AI search analytics that customers in their area are increasingly asking about gluten-free options, prompting menu adjustments before competitors recognize the trend.

Uzi Dvir, Chief Information Officer at WalkMe, a digital adoption platform, explains that this evolution extends beyond consumer search: “AI-powered search will become integrated into employee workflows as businesses adopt powerful generative AI tools that account for a company’s entire data context.” This integration promises significant productivity gains by understanding user needs and delivering information in digestible formats.

3. Navigating the challenges of AI search

The transition to AI-powered search brings substantial risks alongside its benefits. AI systems can exhibit bias in their results, potentially favoring certain businesses over others based on flawed training data or algorithmic preferences. These platforms may also generate factually incorrect information or make assumptions that lead users to inappropriate business recommendations.

Privacy concerns add another layer of complexity. AI search platforms collect vast amounts of personal data to deliver personalized results, raising questions about data security and user consent. Businesses must also grapple with transparency requirements—customers increasingly expect to understand how AI systems make recommendations and whether commercial relationships influence search results.

Perhaps most critically for businesses, McKinsey warns that unprepared companies may experience traffic declines of 20 to 50 percent from traditional search channels. This dramatic shift means that businesses optimized for conventional search algorithms may suddenly find themselves invisible to potential customers using AI-powered platforms.

The challenge extends beyond visibility to control. In traditional search, businesses could influence their ranking through SEO techniques and paid advertising. AI search platforms often present a single answer or a small set of recommendations, making it crucial for businesses to understand and optimize for these new algorithms while having less direct control over their presentation.

4. Strategies for thriving in the AI search era

Successful adaptation requires a comprehensive approach to content and digital presence. Jorge Castro, writing in Forbes, emphasizes that businesses should regularly audit their SEO strategy to identify areas where AI can enhance their efforts. This includes creating user-centric content that satisfies both human readers and AI algorithms.

The most effective strategy involves developing comprehensive, authoritative content that addresses customer questions at every stage of the decision-making process. Instead of creating separate pages for “plumbing services,” “emergency plumber,” and “plumber near me,” businesses should develop detailed resources that cover service offerings, availability, pricing transparency, and customer testimonials in ways that AI systems can easily parse and present.

Businesses should also focus on maintaining accurate, up-to-date information across all digital platforms. AI search systems often pull data from multiple sources, including business listings, social media profiles, and review platforms. Inconsistent information across these channels can confuse AI algorithms and result in poor search visibility.

Local businesses particularly benefit from optimizing for location-based queries and ensuring their Google Business Profile, Yelp listings, and other directory information is complete and current. AI search platforms heavily weight this structured data when making local recommendations.

5. Preparing for the future of search

The evolution toward AI-powered search represents just the beginning of a broader transformation in how people discover and interact with businesses online. Voice search, visual recognition, and augmented reality integration will further change customer behavior and expectations.

Forward-thinking businesses are already experimenting with AI tools to better understand customer intent and optimize their digital presence accordingly. This includes using AI analytics to identify emerging search trends, creating content that addresses voice search queries, and developing interactive experiences that provide immediate value to potential customers.

The companies that will thrive in this new landscape are those that view AI search not as a threat to traditional marketing approaches, but as an opportunity to connect more meaningfully with customers by providing exactly the information they need, when they need it, in the format they prefer.

Success in the AI search era ultimately depends on understanding that technology serves to enhance human connections rather than replace them. Businesses that combine AI optimization with genuine customer focus and high-quality service delivery will find themselves well-positioned to capitalize on this fundamental shift in how people discover and choose the companies they want to work with.