New data from Sensor Tower confirms what many of us suspected but couldn’t yet prove: AI-assisted shopping on Amazon has quietly crossed the threshold from experiment to default behavior. During the 2025 holiday season, Amazon’s AI assistant Rufus didn’t just influence shopping — it captured a disproportionate share of actual purchases. In this recap of my recent article for The Drum, I break down what the data really tells us, why Amazon’s headline claims may have undersold the impact, and how AI-assisted journeys are reshaping conversion dynamics.

I also unpack what this means for retailers and brands as AI becomes a primary decision aid. From late-funnel “rescue” moments, to early decider confidence boosts, the evidence suggests we’re not dealing with a single funnel anymore. And if AI assistants replace search as the dominant interface, the future of retail media may depend less on placement, and more on inclusion.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why AI-assisted shopping is no longer a novelty and how Rufus captured 66% of purchases on Black Friday

[01:02] Andy Jassy’s $100B Rufus claim and why the industry struggled to validate it

[02:22] How Amazon positions Rufus against third-party AI shopping agents

[03:26] The strategic restraint that sets Rufus apart from other retailer AI experiments

[04:45] Sensor Tower’s “cart reconsideration” journey and a surprising 50% conversion rate

[08:21] What AI-assisted shopping means for the future of retail media monetization

Links & Resources

• My full article on The Drum - While everyone debates agentic shopping, Amazon’s Rufus is racking up sales
• Sensor Tower research results - Retail Embraces AI: How Did Rufus Impact Amazon's November Sales?
• Read my related articles:
  • The 3 Ways Agentic Commerce Could Destroy Retail Media
  • Amazon is playing agentic commerce chicken. Other retailers should not.
  • At NRF, Retailers Say "Bring On All The Bots"
• Atlanta-based retail media professionals: Wednesday, February 25 is the next In-Person Atlanta Happy Hour! RSVP here.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Sometimes I feel like the town crier waving a bell about AI and retail media, proclaiming "the end is nigh!", but there's a reason I keep humming the same tune. AI-enabled shopping isn’t a future problem. It’s already reshaping how consumers discover, research, and decide what to buy, yet much of the retail media industry is still eerily quiet about it.

In this episode, I react to telling statements made by Sam Khoury, Chief Strategy Officer at Marketecture, who recently appeared on the ADSN podcast. What happens when shoppers move their intent upstream — away from retailer-owned surfaces and into LLMs like ChatGPT? If retail media was built on upper-funnel signals, what happens when those signals disappear? Sam shares insights that every retailer, brand, and retail media leader needs to be paying attention to right now.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why AI is the “silent concern” no one in retail media wants to talk about

[01:09] Sam Khoury on why hiding from AI-driven consumer behavior won’t work

[02:30] The data point retailers can’t ignore: AI referrals and in-store LLM usage are surging

[03:20] How AI tools are replacing Google as the starting point for research and discovery

[04:33] The real retail media risk: losing upper-funnel signals, surfaces, and measurement

[07:36] Why this shift may be bigger than mobile, and what early recognition enables

Links & Resources

• Listen to the full ADSN interview with Sam Khoury - Sam Khoury on B2B Creator Businesses, Netflix+WB4EVA, the $1B Digital Twin, and Meta the Energy Company
• Subscribe to the ADSN podcast, hosted by James Borow and Daniel Druger
• Follow Sam Khoury on LinkedIn
• Subscribe to Marketecture
• Read my related articles:
  • The Secret Hopes & Dreams of RMN Leaders
  • Why RMNs Keep Their Tech Stacks Secret
  • Costco: The Retail Media Network That Refuses to Promote Itself
• Atlanta-based retail media professionals: Wednesday, February 25 is the next In-Person Atlanta Happy Hour! RSVP here.
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn

Today, I'm sharing a portion of a sharp and timely analysis from Deborah Aho Williamson, one of the most trusted voices in digital advertising and platform strategy, on why advertising inside AI-powered platforms is becoming unavoidable for certain industries. The piece is titled Should Your Industry Advertise in AI Media in 2026? from Deborah's wonderful newsletter The AI Ad Economy.

Deborah shines a light on ads inside LLMs becoming a front-burner priority, and why retailers are uniquely positioned to benefit from testing AI media now. From consumer AI usage data to search ad spend trends and lower-funnel alignment, what signals matter most, and where advertisers can realistically start experimenting today, this episode runs the run the gamut of important questions sweeping through retail media.

This episode is sponsored by Mirakl Ads

Timeline

[00:00] Why I’m sharing a guest post, and why this one matters so much
[01:07] Deborah Aho Williamson’s AI ad research and the industries that should act now
[02:47] The three factors that determine whether your industry is ready for AI media
[04:17] Why retail stands out: search ad spend, AI usage, and category readiness
[05:26] Key consumer behaviors: how shoppers use AI in retail purchase decisions
[07:15] The big takeaway, and why Microsoft Copilot is the easiest entry point for LLM ads

Links & Resources

• Read Deborah's article in full - Should Your Industry Advertise in AI Media in 2026?
• Subscribe to The AI Ads Economy on Substack or on LinkedIn
• Follow Debra Aho Williamson on LinkedIn
• Read my related articles:
  • Ads in AI Are Older Than You Think
  • ChatGPT Ads Are Here. I'm Not Panicking.
  • The 3 Ways Agentic Commerce Could Destroy Retail Media
• Join me and Jordan Witmer from Salt XC at 11am Thursday Feb 5 (that's today!) for a LinkedIn Live on The Store As Media: Retail Media That's Scalable, Memorable & Worth Buying. We'll be answering questions LIVE -- join us!
• Subscribe to Retail Media Breakfast Club's daily newsletter
• Follow Kiri Masters on LinkedIn