A new study reveals that generative AI tools are rapidly eclipsing traditional search for business buyers seeking vendors and suppliers.

Per the research:

• 56% of tech buyers now rely on AI chatbots more than traditional search when evaluating vendors, compared to ~28% in other sectors.

• One in four B2B buyers say they use generative AI more often than conventional search.

• The trend is strongest in tech and software categories, where trust, clarity, and vendor transparency become more critical than ever. 

This signals a fundamental shift in how procurement, supplier discovery, and B2B sales funnels must operate – the first touchpoint is no longer Google or a directory, but a conversational agent.

Source: Digital Commerce 360

Strategic Implications for Xyra Group & Our Portfolio

1. Search Engine Optimization (SEO) alone is no longer enough

Brands must ensure their product, service, and vendor metadata are “AI-readable” – that means structured data, semantic descriptions, and conversational hooks.

2. Conversational positioning is now part of GTM strategy

Being discoverable via AI agents (as suppliers or service providers) must be baked into messaging, offerings, and marketing early on.

3. Trust & transparency gain premium importance

Because AI agents pre-filter vendors, Reputation, reviews, certifications, and clarity of features become differentiators. If your offering lacks depth or readability, you may be filtered out.

4. Invest in AI agent simulators and testing

We should simulate how agents “see” our portfolio companies. Tweak prompts, metadata, rankings – find defects in discovery before real buyers do.

5. Adjust sales & marketing channels

Sales teams must be ready to engage later in the funnel, not at vendor discovery. Marketing will shift from pull to predictive signals.