New Zealand digital marketing agency Sprocket Digital has warned that businesses could collectively need to invest more than NZ$300 million over five years to remain visible as consumers increasingly use generative AI to research products and services.
The agency’s assessment draws on earlier consumer research from PwC New Zealand, which found that AI is changing how people discover products, compare prices and make purchasing decisions.
Sprocket Digital argues that traditional search engine optimisation is no longer sufficient. Businesses increasingly need websites containing detailed, accurate and accessible information that AI systems can use when generating recommendations.
Key facts
- Sprocket Digital estimates a potential NZ$300 million investment requirement over five years.
- PwC surveyed 1,000 New Zealand consumers who had used AI while shopping.
- 44% reported reducing their use of conventional search engines.
- 64% used AI to compare products and prices.
- 62% used AI to research planned purchases.
- 31% were comfortable allowing AI agents to complete purchases on their behalf.
Our take
This is a practical issue for New Zealand businesses, particularly smaller retailers, tourism operators, professional services firms and exporters. As consumers increasingly ask AI assistants for recommendations, businesses need to consider whether their products, services and expertise are accurately represented in AI-generated answers.
The first step does not require substantial investment. Organisations can test how major AI platforms describe their business, identify missing information and improve the clarity and structure of their online content.
The NZ$300 million figure is an agency estimate rather than an independently verified requirement. Nevertheless, the underlying shift towards AI-assisted purchasing is worth preparing for.
