As agents take over shopping, will your brand still stand out?
Even if you’re not yet aware of “Agentic AI,” AI companies believe that soon you will outsource your buying decisions to AI agents.
There is a big debate taking place right now about how that will impact branding:
Will it make branding less important or more important?
Scott Belsky, a highly regarded though leader in branding and marketing, published a LinkedIn article this week exploring the topic. Like Belsky, I believe branding will be even more important in a world filled with AI agents and GenAI generated content.
Beyond what Belsky said, here’s why:
1. You Are What You Buy (and So Is Your AI)
Why Consumer Identity and Branding Still Matter in the Age of AI
The significance of brands goes beyond the products or services they offer. Brands serve as expressions of identity. This principle is grounded in extensive research on self-congruence. At its core, this idea means people gravitate toward brands that align with their self-image.
It’s a fundamental part of consumer behavior. We choose products that either mirror who we are right now (actual self-congruence) or who we aspire to be (ideal self-congruence).
Our buying decisions aren’t solely logical; they are profoundly linked to our identity. The brands we choose act as a public declaration of who we are, a shorthand for our place in the world. This isn’t always a conscious choice of self-expression. Sometimes we make decisions that align with group expectations, financial constraints, or even our own self-doubt. A minimalist might choose Muji or Everlane, while a trendsetter opts for Zara, but the product is secondary to the brand’s story and values. We are always buying into a narrative, whether it’s one we consciously want to tell or one that’s been shaped by our environment and self-perception.
As one brand loyalty study shows, brands are “social symbols” that help us communicate who we are. Even with an AI agent in the mix, we’re not going to suddenly stop caring about who we are and what we stand for.
For people to trust and use AI shopping agents, the agents must be trained to honor their human’s identity. If an AI makes purchases that don’t align with the user’s values and aspirations, it will be dismissed as unhelpful. The agent’s ability to support self-congruence will be key to its adoption.
2. Decisions Are Emotional, Not Logical
What's the last thing you bought based on a spreadsheet of features? Probably nothing, right?
Countless studies show that buying decisions are often driven by emotion, and successful companies tap into that. For example, the proprietary scent of lemon and rosemary at Pottery Barn and the curated music in an Anthropologie store aren’t fun quirks. They are carefully crafted to evoke a feeling that to primes you to buy.
So, while an AI agent might be able to calculate the most efficient option, it will still need to tap into our emotional needs. Brands that have successfully created an emotional connection will have a huge advantage.
They’ve already done the hard work of building trust and a feeling of belonging. A good AI agent will know that a higher price for a brand that makes you feel good is a better choice than a cheaper product that leaves you cold.
3. Brands as a Secret Handshake
For thousands of years, humans have used clothing and possessions to signal their status and group membership. This isn’t a new phenomenon. In ancient Rome, Marc Antony’s decision to embrace Egyptian customs and dress angered his fellow Romans. Alexander the Great’s soldiers turned on him when they thought he had become too Persian. These historical examples show how deeply rooted our need for group identity and belonging is and highlight how high the stakes of social conformity once were.
We still use what we wear and own to show where we belong, and, perhaps more importantly, where we don’t.
In modern society, brands are our social markers. A person who wears a Rolex is signaling something different than someone who wears an Apple Watch. You could argue the Apple Watch has more utility, making it the logical choice. But the final decision is often more about social identity than the utility of the piece.
Sunglasses are a great example of comparable products that are only distinguishable via branding. Almost all sunglasses are made by the same company, EssilorLuxottica. So, a pair of Ray-Bans and a pair of Prada sunglasses could be made in the same factory, but your choice signals whether you’re a classic rebel or a high-fashion icon. This is a perfect example of how brands become a shortcut for communicating group affiliation.
An AI agent will need to understand this non-rational, but deeply human characteristic. It won’t just be looking for the best price. It will be looking for the brand that helps its human owner signal their values and group membership.
4. Branding is the Irreplaceable Value
In a world where AI can generate content and products with a few taps on a keyboard, the things that are truly unique and irreplaceable will become more valuable.
Your brand is that irreplaceable thing.
It’s the unique story, the emotional connection, and the sense of belonging that will differentiate you from a sea of generic, AI-generated content and products. So, no, AI won’t make branding less important. It will make it the most important thing you do.
