Will AI agents become the digital consumers of tomorrow?

Since the emerge of ChatGPT, the entire economy has gone crazy. Many things have started to change, and the industries we know today may not exist in their current form in a few years or even months. One of them is digital advertising.

Many posts have been written about Google AI and the threat it poses to the publishing industry, myself included. But that is not the whole story.

Now, if you follow technical articles and the evolution of the whole AI industry, you will hear the term Agents quite often. Agents are a technical form of personal assistant for all sorts of things we do in our everyday (at least for now, digital) lives. Some are more generic in nature, like Anthropic's computer use (and soon OpenAI agents), to very specific agents for verticals like software, marketing, etc. that do one or a few use cases very well.

So, where is the catch?

Well, as these agents are being developed for all sorts of things, and already are, they will eventually free us from many of the things we do online, such as searching for things, navigating through websites, although some things will remain because we simply like doing them.

Others will be outsourced sooner or later, initially or automatically, by giants like Google and OpenAI, who are moving into every single corner of our digital space and ultimately changing the way digital goods and digital advertising are consumed.

A Real-World Example: How an AI Agent Searches for White Lacoste Shoes

To illustrate how AI agents perform searches on behalf of humans, let's look at a real-world example: Suppose I want to buy green Lacoste shoes, and deliberately not from Amazon, so that Claude can navigate me to more options.

The prompt might look like this, in its simplest form:

google green shoes lacoste leather gold lacoste not from Amazon

And, Go.

Tool Use: Computer

Input: {'action': 'mouse_move', 'coordinate': [158, 234]}

Tool Use: Computer

Input: {'action': 'left_click'}

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The search results are showing some green Lacoste shoes, but the goal is to find white ones. The AI agent modifies the search query accordingly:

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Tool Use: Computer

Input: {'action': 'mouse_move', 'coordinate': [347, 171]}

Tool Use: Computer

Input: {'action': 'left_click'}

Tool Use: Computer

Input: {'action': 'type', 'text': 'white shoes lacoste leather'}

Tool Use: Computer

Input: {'action': 'key', 'text': 'Return'}

---

Now, the AI agent identifies some white Lacoste shoes and analyzes the options:

1. Lacoste Herren Linetrack - A white sneaker with grey accents
2. Lacoste Herren Carnaby Set - A classic white sneaker with green details
3. Lacoste Damen Sneaker - A clean white sneaker with cream/off-white sole
4. Lacoste Herren L001 - A white sneaker with green accents

The AI agent recommends the Lacoste Carnaby Set based on current sales, design, ratings, and price:

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Recommendation: Lacoste Carnaby Set

• Price: 54.95€ (reduced from 77€)
• Features:
• Classic white leather design
• Subtle green accents that give it the signature Lacoste look
• Rated 4.7 stars
• Why Chosen:
• Timeless design combining elegance with sporty elements
• Currently at a great sale price
• One of Lacoste's most popular models

---

The AI agent further refines the search to exclude Amazon and selects three top recommendations from other reputable retailers, providing detailed explanations for each choice:

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Tool Use: Computer

Input: {'action': 'mouse_move', 'coordinate': [101, 234]}

Tool Use: Computer

Input: {'action': 'left_click'}

---

Tool Use: Computer

Input: {'action': 'left_click'}

---

Tool Use: Computer

Input: {'action': 'key', 'text': 'Page_Down'}

---

Based on the available options from non-Amazon retailers, here are the top 3 recommendations:

1. Lacoste Herren Carnaby Set (from Zalando)
2. Price: 54.95€ (on SALE from 77€)
3. Features:
   – Made of leather– Classic white/green color combination
4. Why Chosen:
   – Timeless design– Great sale price– High customer ratings
5. Lacoste Herren L001 (from Deporvillage)
6. Price: 82.95€
7. Features:
   – Premium white leather with subtle green details
8. Why Chosen:
   – Modern take on classic style– Trending design with a slightly chunkier sole– Good value for a premium leather sneaker
9. Lacoste Herren G80 Club Sneaker (from Zalando)
10. Price: 105.00€ (reduced from 120€)
11. Features:
    – White with green accents and gum sole
12. Why Chosen:
    – Perfect balance between retro and modern styling– Durable gum sole adds nice contrast

All three options are:

• Made of leather
• Feature the classic Lacoste white/green color combination
• Available from reputable retailers (not Amazon)
• Currently on some form of discount
• Have good customer ratings

Would you like more specific details about any of these three options?

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I stopped the experiment at that point.

Quick Evaluation

As you can see the results are not bad, although I am sure that if I had been more detailed I would have found something that was probably close to what I was looking for.

Of course, there are still some caveats at this stage, which is why I would not recommend using it for this type of task (yet):

• Keyboard and mouse operation takes a considerable amount of time, including scrolling, typing, etc.
• Note that with every action, the screenshot is transmitted and evaluated by ClaudeCosting tokens.
• Last but not least, and most interestingly:

Claude is a bit of a quick thinker, so he tends to go for the first best option. We humans can be a bit more indecisive, going back and forth between choices. But even this can be tweaked with a little prompting!

Integrating the Example into the Bigger Picture

This example showcases how AI agents can handle complex search tasks, making decisions based on user preferences, current deals, and product ratings. By automating the search and selection process, AI agents save users time and effort, streamlining the online shopping experience.

The Impact on Digital Advertising

I did some research with GPT, and here is what I found:

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The advent of artificial intelligence (AI) has brought transformative changes across various sectors, including digital advertising. As AI agents become more sophisticated, there is growing concern about their potential impact on traditional digital advertising models. This report examines whether AI agents that summarize information and handle tasks for consumers will diminish the role of digital advertising, particularly as consumers increasingly rely on these agents instead of visiting websites directly.

The Evolution of AI in Digital Advertising

AI-Driven Content Creation

AI has already revolutionized digital marketing through efficient and scalable content creation. According to a report, 85.1% of individuals utilize AI for generating content, and by 2030, AI is projected to contribute $15.7 trillion to the global economy (Spiralytics). AI tools can produce blogs, articles, social media posts, and more, optimizing them for search engine optimization (SEO) and audience engagement. This capability allows marketers to tailor content more precisely to consumer preferences, potentially increasing engagement and conversion rates.

AI-Powered Marketing Automation

AI-powered marketing automation is another transformative development in digital advertising. By analyzing consumer data, AI can generate personalized email content and customize messages to individual preferences and behaviors. This level of personalization enhances the effectiveness of marketing campaigns, making them more relevant to consumers and potentially increasing their impact (Spiralytics).

The Rise of AI Agents and Their Impact on Consumer Behavior

AI Agents as Information Gatekeepers

AI agents are increasingly becoming the primary interface between consumers and digital content. These agents can summarize information, perform tasks, and provide personalized recommendations, reducing the need for consumers to visit websites directly. This shift in consumer behavior could potentially diminish the role of traditional digital advertising, which relies heavily on website traffic and user engagement.

The Shift from Web Interfaces to Device-Based AI

As large language models (LLMs) migrate into devices, moving away from traditional web interfaces, the marketing landscape is poised for significant changes. Marketers must adapt to these shifts, leveraging both traditional media and emerging AI technologies to engage effectively with their audiences in this new digital era (Towards Data Science).

This dual approach, combining the impact of traditional media with the precision of AI-driven analytics, could be the key to success in the rapidly evolving marketing landscape of 2024.

Potential Challenges and Opportunities

Challenges for Digital Advertising

1. Reduced Website Traffic: As consumers rely more on AI agents for information, website traffic may decline, affecting traditional digital advertising models that depend on page views and clicks.
2. Ad-Sponsored Results: The potential launch of ad-sponsored results or media measurement tools by platforms like OpenAI could introduce a new dimension in digital advertising. This development would challenge existing digital marketing strategies, prompting a reevaluation of metrics and ROI assessment methodologies (Towards Data Science).
3. Data Privacy Concerns: As AI agents handle more consumer data, concerns about data privacy and security may arise, potentially affecting consumer trust and engagement with digital advertising.

Opportunities for Digital Advertising

1. Enhanced Personalization: AI agents can provide highly personalized content and recommendations, enhancing the relevance and effectiveness of digital advertising campaigns.
2. New Advertising Models: The integration of AI agents into digital advertising could lead to the development of new advertising models that focus on personalized, context-aware content delivery.
3. Improved ROI Assessment: AI-driven analytics can provide more accurate and comprehensive insights into consumer behavior, allowing marketers to optimize their strategies and improve ROI assessment methodologies.

Wrap-Up

The rise of AI agents presents both challenges and opportunities for digital advertising. While the potential for diminished website traffic and traditional advertising models is a concern, the enhanced personalization and new advertising models offered by AI agents provide significant opportunities for marketers. To succeed in this evolving landscape, marketers must adapt to these changes, leveraging both traditional media and emerging AI technologies to engage effectively with their audiences.

References

• Spiralytics. (n.d.). The Impact of AI on Digital Marketing — 2024 Trends and Forecasts. Retrieved from https://www.spiralytics.com/blog/the-impact-of-ai-on-digital-marketing-2024-trends-and-forecasts/
• Towards Data Science. (n.d.). Navigating the AI Landscape of 2024: Trends, Predictions, and Possibilities by Vincent Koc. Retrieved from https://towardsdatascience.com/navigating-the-ai-landscape-of-2024-trends-predictions-and-possibilities-41e0ac83d68f