Generative artificial intelligence (Gen AI) is transforming how business buyers discover and evaluate potential vendors — and, for many, it’s replacing traditional search engines.
According to new research from Responsive, a San Francisco-based provider of AI-powered Strategic Response Management software, one in four B2B buyers now use GenAI more often than conventional search when researching suppliers. Two-thirds said they rely on AI chatbots as much or more than Google or Bing when evaluating vendors.
The study is based on responses from more than 350 B2B buyers worldwide. It highlights how quickly AI has upended the early stages of procurement. Buyers are increasingly using conversational tools that summarize, compare and recommend vendors in real time. But while the tools have changed, the decision factors have not. Buyers still value trust, industry expertise and the quality of a vendor’s proposal more than anything else.
Toby Carrington, chief business officer at Seismic, said the shift underscores how prepared buyers now are before speaking with sales teams. Seismic is an AI-powered platform for sales and marketing.
“By the time a vendor reaches out, we’re already deep into the evaluation stage and AI has accelerated these efforts,” Carrington said. “At that stage, we’re looking for proof. If a rep isn’t enabled to demonstrate expertise and transparency throughout the sales cycle — including the RFP process — then they are out, no matter how good their product is.”
Generative AI’s role in B2B search and discovery
Responsive found that most buyers arrive at the table well informed. Only 10% said they do minimal research before reaching out. About 35% conducted moderate research, focusing on pricing and capabilities, while 37% perform detailed comparisons. Another 18% said they do extensive due diligence, reviewing financial and case studies before making contact.
Regional and company size differences were significant. In the U.S., just 3% of buyers said they approach vendors with limited knowledge, compared with as much as 20% in Europe, Asia-Pacific and the Middle East. Large enterprises, defined as those with more than 3,000 employees, are twice as likely as smaller firms to perform deep-dive research before engaging suppliers.
Before issuing formal requests for proposals, most buyers have already narrowed their lists. They typically start with five to eight vendors but reduce that to three or fewer in the final stages. Larger organizations tend to keep more options open, averaging about four vendors in final consideration, while smaller and mid-sized companies often make contact earlier in their research cycle.
The rise of GenAI is most pronounced in technology and software, where 80% of buyers said they use AI tools as much or more than search engines. More than half of tech buyers — 56% — said they rely on chatbots as a top source for vendor discovery, compared with 28% in other industries.
The U.S. leads in adoption, with 48% of buyers using GenAI to find vendors versus just 14% elsewhere. Among large enterprises, 42% said they now depend on AI for vendor discovery, compared with 18% of mid-sized firms.
How B2B companies are rethinking search optimization
The shift is forcing companies to rethink visibility. In the past, search engine optimization determined whether a vendor appeared in a buyer’s research. Now, the key question is whether large language models (LLMs) can interpret a company’s data and messaging. If GenAI systems cannot identify or understand a vendor’s offering, that company may never make a buyer’s shortlist.
Despite the changing landscape, traditional processes remain influential. Half of buyers said they issue formal RFPs when price pressure is high, while 41% said they do so for high-risk or high-impact purchases. About 39% use RFPs to ensure objectivity or when entering unfamiliar markets.
Responsive recently introduced TRACE Score — a framework for evaluating AI-generated content based on trust, relevance, accuracy, completeness and explainability — to help companies ensure quality and accountability as AI becomes more embedded in sales and marketing.
The findings make clear that generative AI is altering the top of the B2B sales funnel, but it hasn’t replaced the fundamentals. Buyers may start with chatbots, but they still close with confidence in people.
As Carrington noted, “AI is speeding up how we buy, but it hasn’t changed what we value.”
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
FavoriteThe post Generative AI begins to eclipse traditional search in B2B vendor discovery appeared first on Digital Commerce 360.
from Digital Commerce 360 https://ift.tt/Tf4I32d
0 Comments