Empowered Customers Are Driving the Era of Brand Meritocracy

This is just one anecdotal example, but it points to a disconnect between the mindset of a human shopper, who may be more motivated by the intangibles behind brand loyalty, and their analytical AI shopping assistant. Brand loyalty can still dominate in cases where consumers have a strong predisposition. For example, avid Apple users with numerous connected products will be more inclined to stick with Apple for the sake of integration ease, even if Charlie suggests an alternative. Also, luxury purchases still rely heavily on human emotions and the prestige associated with brands, placing them somewhat outside the realm of Brand Meritocracy as well. But the example raises the question: Does AI’s emphasis on objective evaluation alter the approach marketers need to take?

Yes, but it’s nuanced. AI’s pattern recognition capabilities will likely still favor established brands that have ingrained themselves in consumer habits, effectively recommending a brand because it is the “most likely” answer to the query based on its dataset. However, for new products in emerging categories where brand patterns are not yet established, focusing on the tangible quality and measurable product value that AI assistants evaluate may be more effective than investing heavily in brand awareness. This implies fighting the battle in the lower funnel only, like many D2C brands do today. 

This shift would be beneficial for consumers, leveling the playing field across various categories and favoring brands that deliver genuine quality. Even established brands may find the need to rapidly ramp up innovation and deliver new and better features that hold up against AI’s objectivity. Some may consider shifting resources away from traditional brand awareness strategies for this reason, but for brands that aim to achieve broad awareness and measurable impact, it’s vital to craft stories that resonate with humans and reach their trusted AI assistants. Brand-building remains crucial, but the approach needs adaptation.

For everyone, AI-enabled Brand Meritocracy shifts additional focus onto improving brand experiences. Like outsourcing memorization of phone numbers to our phones, the task of remembering the name of an excellent product can be outsourced as well, so drilling in recall through advertising is less important than creating impactful moments. Our AI assistants will remember the quality of our brand experiences in perpetuity, from the “yum!” to the “yuck!”—so brands better nail those experiences. 

The bar for achieving that through advertising alone will be high. Achieving AI assistant influence is perhaps more meaningful and valuable for brands when it is achieved through product experience: “Charlie, this hotel is fabulous. Let’s stay here again next time.” That type of engagement, spanning human and AI, will become a new benchmark of success for brands.