[November 24, 2025]

Algolia's 6th Annual eCommerce Search Report: AI Investment Remains Resilient, Search Reigns as Retail's Top Digital Priority

Algolia, the AI Retrieval platform orchestrating over 1.75 trillion queries each year, today released its sixth annual B2C Ecommerce Site Search Trends report, compiled by research specialist Coleman Parkes Research. The report reveals global insights from 1,100 senior business and IT decision makers at B2C retailers on their plans to use search this year and how their AI-driven merchandising strategies are evolving in the agentic era.

Nate Barad, Vice President of Product Marketing, Algolia, noted: "This research comes at a pivotal moment. While some enterprises are slowing AI investment due to unclear ROI, B2C retailers are doing the opposite by using AI and advanced search to drive customer experience, conversions, and growth. Nearly 70% are satisfied with the revenue from their search and discovery investments, yet many admit to under-investing in AI this year and plan to accelerate in 2026. There's a real sense of AI FOMO out there, and this catch-up wave shows growing confidence in the value AI can deliver."

According to the research, the motivators are clear: Increasing revenue remains the top driver of search implementation, up nine points year-over-year to 58%, followed by meeting evolving customer demand (45%), and enhancing customer experience (39%). Retailers aren't experimenting, they're competing to lead in an AI-powered market where speed, relevance, and personalization define success.

Key findings from the B2C Ecommerce Site Search Trends report include:

Strategic Search Investments Signal a New Competitive Standard

• Search was cited as the No. 1 digital investment for B2C ecommerce decision makers over the next year, followed by payments and personalization.
• Of the companies that increased spending on search, investment grew 6% year-over-year. Continued momentum is expected into 2026, with 42% of businesses globally planning to increase spending, and 45% in the U.S. and 50% in the U.K. anticipating bigger budgets next year.
• Partnerig with true search experts is a top preference for B2C retailers. 49% of these businesses now rely on third-party search solutions, compared to the 27% opting to build solutions in-house and 23% relying on off-the-shelf, pre-packaged search software.

• 61% of B2C organizations plan to implement agentic AI within the next 12 months. The top three factors driving agentic adoption are smooth system integration (47%), ROI (39%), and ensuring retailer control over the technology (37%).
• 94% believe gen AI has a positive impact on loyalty and repeat purchases and powering conversational tools that inform purchases processes. 89% cite gen AI's ability to summarize customer reviews as a top benefit.
• 91% of B2C leaders say "search by image" is the most valuable AI-powered feature.

"Overall, the report tells us that retailers' view of gen and agentic AI is that these are assistive technologies, but humans continue to play the most critical role in interpreting insights and shaping merchandising strategy," continued Barad.

Personalization Drives Revenue and Loyalty Amid Today's Economic Downturn

• 9 in 10 respondents consider gen AI very or somewhat important to generating a personalized user experience for their customers and end users.
• When asked the top three AI-powered features consumers are most eager for, 68% of B2C leaders pointed to hyper-personalization, followed by 62% who cited predictive shipping suggestions as a top priority.
• AI-powered personalization ranked among the most valuable AI search capabilities, with 78% of retailers citing it as a top feature.

Andy Easton, Research Director at Coleman Parkes Research Ltd, added: "Across the 6th annual B2C State of Search, one thing is unmistakable: every region is racing toward an AI-first future. But the way they're getting there looks very different. France is doubling down on search investment, the U.S. is focused on AI tools that drive conversions, and Australia's visual-first shoppers are shaping entirely new experiences. These differences reflect local priorities and levels of maturity - yet the goal is universal: to deliver shopping experiences that are relevant, intuitive, and effortless. The most innovative retailers are already leading the way."

Algolia will be at Tech for Retail on November 24-25 in Paris. Stop by booth #FB87 to demo Algolia AI Search or request an online demo. Download a free copy of Algolia's 6th annual B2C Ecommerce Site Search Trends report here.

Report Methodology

Commissioned by Algolia and conducted by Coleman Parkes, this report reveals insights from 1,100 retail and ecommerce leaders, comprising 550 IT decision makers (ITDMs) and 550 business decision makers (BDMs) spanning across five key markets including the US, UK, France, Germany, and New Zealand/Australia.

About Algolia

Algolia is an AI Retrieval platform, powering over 1.75 trillion searches a year for more than 18,000 businesses and millions of developers worldwide. Built on a developer-first, API-first foundation, Algolia combines keyword, vector, and hybrid retrieval with powerful rules, personalization, and analytics to deliver the world's fastest, most scalable AI search technology.

Backed by more than a decade of innovation, Algolia is redefining how businesses and builders create agentic, retrieval-powered experiences - from Retrieval-Augmented Generation (RAG) to LLM-based applications through its MCP server and next-generation tools like AskAI and Agent Studio. With unmatched speed, trust, and simplicity, Algolia is shaping the future of intelligent discovery and AI agents. Learn more at www.algolia.com.

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