Cordial, a leader in messaging for enterprise retail marketing, has released a new report titled “Brands Battle for Attention as AI Redefines the Funnel,” which reveals a growing disconnect between consumer behavior and brand readiness amid rapid AI adoption in marketing. Drawing from surveys of 1,000 U.S. consumers and 30 marketing executives conducted in summer 2025, the report outlines how AI is fundamentally transforming the traditional marketing funnel and how brands are struggling to keep pace.
Rather than the old “louder is better” approach relying on more messages and touchpoints, marketers now face consumer fatigue and diminished engagement due to overwhelming noise. Personal AI agents like ChatGPT, Perplexity, and Claude are increasingly mediating consumers’ shopping journeys, with about one-third of consumers using these platforms regularly, especially Millennials and Gen Z, who adopt AI at rates 33% and 11% higher than average respectively.
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Despite this shift, nearly half of brands have minimal or no AI agent presence, and only 7% possess comprehensive AI optimization strategies, creating a significant blind spot. Marketers recognize AI agents as crucial channels, but many brands are burdened by technological fragmentation, juggling over five disconnected marketing applications and doubting their customer data quality.
The report highlights that only 3% of brands can effectively leverage real-time behavioral data to predict customer needs. Brands are categorized into “Basic,” “Emerging,” and “Optimized” tiers, with the latter group achieving seamless integration across data, AI, and channels, enabling real-time, scalable personalization and growing marketing performance. Meanwhile, less mature brands face siloed systems and stagnant results.
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With 90% of organizations planning to increase their marketing channels over the next three years and a third aiming to consolidate marketing technology stacks by 2028, Cordial emphasizes that brands who unify technology and harness AI-driven experiences will not just cut through the noise but will also secure competitive leadership in this evolving landscape.
Rob Garf, Cordial’s Head of Strategy and Insights, summarizes the new reality: consumers are more connected and fragmented, AI has upended the funnel, and brands must optimize data, AI, and channels to deliver seamless, personalized experiences anywhere consumers engage.
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