AI Mode in New Zealand: What It Means for Ecommerce Businesses

The way Kiwis search and shop online is about to change dramatically. AI Mode – Google’s new AI-powered search experience.

Tama Payne – SEO/GEO Specialist – The Optimisers

– is rolling out across New Zealand, and it’s set to transform how ecommerce businesses connect with customers. For local retailers and online stores, understanding this shift isn’t just helpful – it’s essential for staying competitive.

 If you’re in ecommerce and want to understand exactly what these search changes mean for your business, keep reading. We’ll break down the opportunities, challenges, and practical steps you need to take right now.

Tama Payne,  Specialist at The Optimisers shares his insights.

What is AI Mode and How Does it Differ from Traditional Search?

Understanding Google’s AI mode technology?

Traditional search has always been straightforward: you type in a few keywords, get a list of blue links, and click through to find your answers. But AI Mode flips this entire experience on its head.

This process, known as “query fan-out”, represents a fundamental shift in how search works. Instead of finding results relevant to one query, the system is searching for multiple queries and merging results together. Think of it like having a research assistant who doesn’t just answer your specific question, but anticipates all the related questions you might have and researches those simultaneously.

For example, if you search “best running shoes for beginners,” traditional search would show you pages specifically about beginner running shoes. But with query fan-out, AI Mode might simultaneously search for “running shoe features for new runners,” “how to choose first running shoes,” “common beginner running mistakes,” and “running shoe sizing guide” – then combine all these insights into one comprehensive answer.

This creates a dramatically different experience. As Tama describes it: “The AI system itself is now doing a lot of the research work for you and then summarizing the answer for you, so you no longer have to go and click and read and do all of that research yourself.”

The implications are significant. Because AI mode is summarizing results from multiple queries, it means that AI Mode ranks websites differently than traditional search. A website that might rank on page two for your specific search term could suddenly appear prominently in AI Mode if it provides excellent information for one of the related queries in the fan-out process.

The Query Fan-Out Revolution

This process fundamentally changes how businesses need to think about search visibility. Traditional SEO focused on ranking for specific keywords, but AI Mode’s query fan-out technique means your content could be discovered through any number of related searches that happen simultaneously behind the scenes.

For more on the future of search, read our recent insights on digital marketing trends and how AI-powered experiences are changing the online landscape in New Zealand.

Why AI Mode Matters for the New Zealand Market

New Zealand’s Digital Adoption Advantage

New Zealand’s compact, digitally-savvy market makes it particularly well-suited for AI adoption. Kiwi consumers have consistently been early adopters of digital tools, from mobile payments to online shopping. This trend positions New Zealand ecommerce businesses to benefit significantly from AI-powered search – but only if they’re prepared.

The conversational nature of AI Mode aligns perfectly with how New Zealanders prefer to shop: asking questions, seeking recommendations, and making informed decisions.

Unlike keyword-based searches, AI Mode supports the kind of detailed, context-rich queries that help customers find exactly what they need.

Better Customer Intent Understanding

“You might get a stronger understanding of our users’ intent when they’re making searches,” Tama notes, “because a lot of the times when you’re looking at keywords, you’re trying to figure out what the user’s intent is. But as these queries get longer, you probably get a better understanding of who your audience is.”

The Impact on Ecommerce: Opportunities and Challenges

New Opportunities for Growth

AI Mode creates several exciting opportunities for forward-thinking ecommerce businesses:

• New Ranking Dynamics: The query fan-out technique means AI Mode ranks websites differently than traditional search. A page that ranks poorly for your main keyword might suddenly become highly visible if it excellently answers one of the related questions in the fan-out process.
• Enhanced Product Visibility: Well-structured product information can now appear in rich, detailed AI-generated responses rather than just basic search listings. This means better-informed customers and more qualified leads.
• Contextual Shopping Experiences: The conversational nature of AI search allows for more nuanced product recommendations. As Tama explains: “It no longer becomes like individual keyword searches, but it’s now more of like a back and forth with this AI model.”
• Better Audience Understanding: The longer, more detailed queries provide deeper insights into customer intent and needs, allowing businesses to tailor their content and products more effectively.

Challenges to Navigate

However, AI Mode also presents new challenges that businesses must address:

• Reduced Direct Traffic: “If you’re a publisher, you’re probably going to see less traffic and less clicks, because users are now going to get that answer summarized for them,” warns Tama. This means businesses need to work harder to earn click-throughs.
• Technical Complexity: Success in AI Mode requires sophisticated technical implementation. Structured data, in particular, becomes crucial but can be challenging to implement correctly.
• Content Strategy Overhaul: The shift from keyword targeting to question-based content requires a fundamental rethinking of content strategy.

Practical Steps for New Zealand Ecommerce Businesses

To navigate this AI-powered shift successfully, we turned to Tama Payne, SEO expert and Technical Specialist at The Optimisers, for his insights on what New Zealand ecommerce businesses should prioritize right now.

Here are his five essential steps to get your business ready for AI Mode:

1. Get Your Structured Data Sorted

Think of structured data as giving Google a clear roadmap of what’s on your website. “Structured data is just like classifying key pieces of information on your web page,” Tama explains. “So for a product page, it’s telling search engines: this is my product name, this is my product price, this is the return policy.”

It might sound technical, but it’s worth the effort: “Getting it right really increases your visibility across different Google surfaces – not only AI mode, but Google Shopping, Google Images, product grids and organic search results.”

The good news? If you’re on Shopify or similar platforms, there are plugins that can help automate much of this for you.

2. Think Beyond Keywords – Focus on Questions

Here’s where things get interesting. AI Mode doesn’t just look for your main keyword anymore – it’s trying to answer the whole conversation your customer might have about your product.

“I’d recommend thinking about longer content like buying guides,” suggests Tama. “Really detailed descriptions of your products, who they’re suitable for, what their use cases are.”

So instead of just optimizing for “running shoes,” think about all the questions someone might ask: What features do beginners need? How do I choose the right size? What’s the difference between road and trail shoes? Create content that covers the full picture, because AI Mode might pull from any of these angles when someone searches for your products.

3. Make Your Product Pages Work Harder

Your product pages need to tell the full story now, not just list features. Make sure you’ve got:

• Great photos that show your product from different angles
• Descriptions that explain both what it does and why someone would want it
• Clear info about who this product is perfect for

Think of it like this: if AI Mode is going to summarize your product for a potential customer, you want to make sure it’s got all the good stuff to work with.

4. Really Get to Know Your Customers

This one’s huge. “Having a really clear understanding of who your audience is and what content they want to consume will become more important,” Tama says.

Here’s what he means: if you sell tennis gear, a beginner player and a tournament player are going to ask completely different questions. The beginner might want to know “what’s a good first racquet?” while the advanced player is asking “which strings give the best control for topspin?”

 

Write for both, but write differently for each. The more you understand what your customers actually care about, the better chance you have of showing up in their AI Mode results.

5. Keep an Eye on How You’re Performing

The good news is you can track how you’re doing with AI Mode using Google Search Console – the same tool you probably already use. “If you rank in AI mode, you’ll still get an impression count if your link is visible for the user,” Tama explains.

Start paying attention to these numbers now. You might notice your traffic patterns changing, or see longer, more conversational search terms bringing people to your site. That’s AI Mode in action.

The Technical Reality: Implementation Challenges

Understanding the Complexity

While AI Mode offers tremendous opportunities, the technical requirements shouldn’t be underestimated. “Structure data is a big one, but it’s also very, very challenging to set up correctly depending on your CMS,” Tama notes.

For businesses on platforms like Shopify, plugins can help automate much of the process. However, verification and ongoing optimization remain crucial: “You also need to manage and review the effects of implementing the structured data. So understanding, you know, we’ve implemented it. Are we now? Is our visibility improving?”

The Importance of Expert Guidance

“I think there’s definitely a challenge in terms of understanding why it’s important, how to test that it’s working correctly,” Tama observes. This is where expert guidance becomes invaluable for navigating the technical complexities while focusing on business growth.

Looking Ahead: Preparing for the AI-Powered Future

The Fundamental Shift in Customer Discovery

The shift to AI-powered search represents more than just a new feature – it’s a fundamental change in how customers discover and evaluate products online. New Zealand businesses that prepare now will be best positioned to thrive in this new environment.

Why Early Adoption Matters

The businesses that succeed in AI Mode will be those that understand the query fan-out technique and optimise their entire digital presence accordingly. This isn’t just about tweaking a few pages – it’s about fundamentally rethinking how you present information to both customers and search engines.

Ready to Future-Proof Your Ecommerce Business in New Zealand?

AI Mode isn’t coming – it’s here. The question isn’t whether your business will be affected, but whether you’ll be ready to capitalize on the opportunities it creates.

For businesses, this shift means it’s no longer enough to simply appear on the page – your content strategy needs to be tuned for intent and context. That’s where specialist SEO support makes the difference, helping you stay visible as search evolves.

Curious how your business can adapt? Get in touch with The Optimisers to learn how AI-driven search changes can work in your favour.