Google’s AI Mode Expands E-Commerce Reach, Raising Concerns Over Data Privacy and Business Control

At Google I/O 2025, the tech giant unveiled major upgrades to its Search experience with the launch of AI Mode, building on the foundation laid by AI Overviews introduced a year prior. The new features—including agentic AI and autonomous shopping tools—signal a bold step into generative, decision-making artificial intelligence that could dramatically reshape e-commerce, digital advertising, and online search behavior.

A New Era of AI-Powered Search

AI Mode transforms traditional search by using query fan-out, a method that splits user queries into multiple sub-queries distributed across various sources. The consolidated responses include Wikipedia-style citations, backed by Google’s Gemini 2.5 AI model. The result is a shift from keyword-based searches to conversational, contextual responses.

Key Features Include:

Agentic AI (Project Mariner): This AI agent can interpret webpage content, infer user intent, and autonomously complete online tasks, including purchases.

AI Shopping Tools: From virtual dressing rooms to real-time price tracking and one-click checkouts via Google Pay, users can now delegate shopping entirely to AI.

Data Visualization (Upcoming): Future updates will allow users to analyze and visualize complex datasets through interactive charts.

Enhanced Search (Project Astra): Deep search and real-time visual search enhancements, powered by Google Lens.

The Impact on Traditional Search

Generative AI models like Google’s AI Mode, OpenAI’s Codex, and Perplexity’s Comet are fundamentally altering how information is accessed online. Studies have revealed drastic shifts in user behavior:

An Ahrefs study of 300,000 keywords found AI Overviews led to a 34.5% drop in clickthrough rates (CTR).

Research by Search Engine Land and Agile SEO showed traffic for some high-ranking keywords fell by up to 64%. However, 27% of keywords still generated traffic through the AI-powered SGE (Search Generative Experience) carousel.

Sundar Pichai, Google’s CEO, emphasized the power of being featured in AI Overviews:

“If you put content and links within AI Overviews, they get higher clickthrough rates than if you put it outside.”

Google has confirmed that ads will be integrated into AI Mode, but transparency concerns remain about distinguishing between organic and sponsored content.

E-Commerce Disruption and the Role of AI Agents

Google's AI-powered shopping tools could dramatically disrupt the current e-commerce landscape:

Autonomous transactions: AI agents can independently complete purchases, bypassing the need for users to visit third-party websites.

Centralized control: With over 50 billion product listings, Google may increasingly serve as the primary sales platform, relegating smaller retailers to background visibility.

Sunil Nair, Co-Founder of Mela Platforms, cautioned brands:

“If you're not Nike, Apple, or Glossier, you're one algorithm tweak away from irrelevance.”

This shift brings up critical questions:

Who owns the data when an AI completes the sale?

Will small businesses lose the ability to control user experience or interface?

Could Google’s dominance make it the unavoidable middleman in online commerce?

The Broader Implications

Agentic AI is no longer experimental—it’s operational. Perplexity's Comet and OpenAI’s Codex are already active. With Google’s AI Mode soon rolling out, the implications are profound:

AI hallucinations: Factual errors and citation inaccuracies remain prevalent.

Filter bubbles: Hyper-personalized search may isolate users from diverse perspectives.

Data privacy risks: The convenience of AI may come at the cost of user control.

Copyright challenges: AI's use of public content for summarization continues to spark debate.

At the heart of it all lies a pivotal question: Are these AI tools designed to empower exploration and informed decision-making—or simply to keep users engaged within Google's ecosystem?

As AI becomes more agentic and less reliant on human input, businesses, regulators, and users alike will need to rethink control, transparency, and trust in the digital age.