AI is rapidly reshaping the landscape of digital commerce, transforming everything from how consumers discover products to how fraudsters automate abuse.
As commerce becomes increasingly autonomous and agent-driven, brands face a significant challenge: how to embrace innovation without compromising trust. This isn’t merely a fraud problem; it’s a fundamental business challenge that requires brands to rethink how they build, earn, and scale trust in an AI-driven economy.
The Rise of Agentic AI in Digital Commerce
Artificial intelligence is no longer just operating in the background; it’s stepping into the role of the shopper. Agentic AI refers to intelligent systems designed to autonomously initiate, plan, and execute tasks, often on behalf of a human user. These agents are more than just tools; they are decision-makers capable of comparing prices, initiating checkouts, redeeming loyalty points, and even triggering returns without direct human input. This shift means that shopping is increasingly being delegated to intelligent agents that interact directly with merchant systems.
This isn’t a futuristic concept; it’s already here. Companies like OpenAI are promoting features like “Operator” that streamline online shopping with AI agents, collaborating with brands such as DoorDash, Instacart, and Priceline. Amazon is also testing its “Buy for Me” AI-powered e-commerce chatbot, indicating that agent-driven activity will soon impact every industry.
The Dual Impact of Agentic AI on Merchants: Opportunities and Risks
For merchants, the emergence of agentic AI presents both significant opportunities and new risks.
Opportunities
- Faster, Frictionless Purchasing: Delegated decision-making by AI agents can lead to quicker and smoother purchasing experiences.
- Enhanced Loyalty: AI can optimize for repeat orders, fostering more loyal customer behaviors.
- High-Value Customers: Ultra-efficient, high-converting agents can represent high-value customers, potentially boosting customer lifetime value (CLTV). Merchants are excited about AI’s potential to personalize experiences and increase repeat purchases, which drives CLTV.
Risks
- False Declines: Transactions initiated by legitimate agents might be mistakenly flagged and declined if traditional fraud models are not equipped to recognize them. These false declines can lead to frustrated customers who take their business elsewhere, resulting in lost revenue and customer lifetime value.
- AI-Aided Abuse: Bad actors can leverage AI for automated returns, promo stacking, or exploiting promotional codes at scale. This type of abuse can erode margins and undermine marketing efforts.
- Loss of Visibility: As interactions become faster, more opaque, and machine-driven, merchants may lose visibility into these transactions using traditional fraud prevention methods.
- Non-Human Identities (NHIs): The rise of AI agents will lead to a surge in NHIs, necessitating a shift in trust verification from solely humans to both humans and their digital proxies. Identifying fraudulent versus real AI-agent behavior and verifying an agent’s provenance, intent, and delegation authority utilizing an identity-based approach will be crucial.
The Imperative of Trust in an AI-First Marketplace
Agentic AI doesn’t just change how shopping occurs; it changes who is doing the shopping. Brands must now build trust not only with human consumers but also with the intelligent systems acting on their behalf.
This trust is fundamentally dependent on the ability to understand identity in real time, even when that identity isn’t directly tied to a human.
To thrive in this new environment, merchants need robust infrastructure that can:
- Recognize and validate AI-driven transactions without introducing friction
- Accurately and quickly distinguish between legitimate agents and malicious bots
- Adapt to evolving patterns of behavior as agents learn and scale
This goes beyond traditional fraud prevention. It’s about maintaining the integrity of the customer experience in a world where not every customer is a human being. Businesses that successfully navigate this challenge harnessing AI-powered e-commerce solutions will not only prevent fraud and abuse but also cultivate a culture of trust, unlocking unprecedented levels of loyalty, speed, and efficiency in an AI-driven economy.
