The customer funnel is gone, and trust is the new moat | MarTech

"As AI agents collapse the consumer funnel and mediate more decisions, brands must strengthen the distinctly human moats - loyalty, trust, community, ecosystems of convenience and meaningful human care. Consumers no longer need 20 tabs, comparison tools or nights spent researching. Increasingly, all they need is a prompt - "book me the best option," "find a pediatrician near me" or "tell me which insurance plan to choose." And often, the agent's first answer becomes the final decision."

"What's fascinating and a bit conflicting is that while Americans express skepticism toward artificial intelligence, they simultaneously allow AI to make more of their choices. About 60% of U.S. adults say they have used AI to search for information at least some of the time. At the same time, trust in AI is lagging - while 66% say they use AI regularly and 83% believe it delivers benefits, only 46% of people globally are willing to trust AI systems."

"Most people think loyalty programs thrive because of math - points, rewards, discounts, perks. But look closer and loyalty's enduring power comes from something deeper: familiarity, psychological comfort, identity and the shorthand that says, "I know how this works. I've been here before." An AI agent may recommend a cheaper hotel, but it can't replicate the feeling of "I know how this brand treats me when things go wrong" or "I've earned my status here.""

AI agents are collapsing the consumer funnel by enabling decisions through a single prompt and often making the agent's first answer the final choice. Consumers increasingly rely on AI for search and decision support, with about 60% of U.S. adults reporting some use. Usage and perceived benefits are high (66% use regularly; 83% see benefits), while global willingness to trust AI is lower (46%). Traditional marketing levers such as search visibility and shelf presence are eroding. Brands must reinforce human advantages: loyalty rooted in familiarity and identity, trust, community, ecosystems of convenience, and meaningful human care.

Read at MarTech