How Generative AI Will Change the Way You Use the Web, From Search to Shopping

People seeking information online will increasingly go first to TikTok, ChatGPT and other applications powered by generative artificial intelligence, instead of using traditional search engines, said Michael Wolf, co-founder and chief executive of consulting firm Activate.

Today, about 13 million U.S. adults begin their web searches by using generative AI, Activate data show. Wolf predicts that will grow to more than 90 million by 2027 because generative AI is capable of providing results with far greater precision and customisation.

“Generative AI fundamentally changes the model for search because the results are no longer links,” said Wolf, who gave a presentation of Activate’s findings at The Wall Street Journal’s Tech Live conference on Tuesday. “It serves up your information totally packaged and ready to use.”

Applications rife with customer data will benefit the most from this shift, Wolf said, as they will be better equipped to serve their users with personalised information. He expects TikTok to lead in this area because Activate estimates that its users already spend an average of more than 54 minutes a day on it, compared with 49 minutes daily on YouTube, 33 on Instagram and 31 on Facebook.

Amazon and other major e-commerce platforms have also embraced generative AI to better recommend products for users based on their past behaviour, along with many music- and video-streaming apps, Wolf said.

For example, Spotify earlier this year introduced AI DJ, a feature that offers a curated lineup of music alongside commentary around the tracks and artists that the app thinks users will like. “Choices are being made for you,” Wolf said.

Google and other search engines are also taking advantage of generative AI, yet Wolf said they might not remain the first stop or default option for most people. People are devoting more of their time to social media, entertainment platforms, online videogames and other utility apps that are also embracing the technology.

According to Wolf, domination within the $100 billion search industry is “up for grabs” and large, established companies aren’t necessarily going to outmuscle startups. The rise of open-source AI models is paving a pathway for smaller entrants to potentially make a big impact, he said.

Adoption of generative AI is being driven by a significant increase in the amount of time people spend online—behavior boosted by the pandemic, Activate data show. With people spending more time online, they are becoming adept at using multiple applications at once, enabling them to accomplish more in a single day than would otherwise be possible. Today, the average U.S. adult spends 13 hours daily multitasking among video, audio, games, social media and various technology and media activities.

“AI is making everybody into a metaverse creator,” Wolf said, referring to extensive online worlds where people interact via digital avatars.

Generative AI is poised to disrupt the internet in other ways besides search, such as content creation, Wolf said. By typing simple text prompts into applications featuring the technology, anyone—not just tech-savvy folks who know how to write code—will be able to make videogames, artwork, music and even entire virtual worlds on their own.

More predictions from Wolf’s presentation:

Nearly all U.S. households, more than 120 million, will be able to access the internet through their television sets by 2027. Whether people own a smart TV or have a device like Roku, the TV screen will play a bigger role than ever, driving subscriptions for streaming services and capturing valuable viewing data.

By 2027, the average video-streaming subscriber will have 5.8 subscriptions, up from 4.9 today. With many such applications now offering the option to see ads in exchange for lower monthly fees, Activate predicts ad revenues across the major video streaming services will grow 25% annually through 2027.

Spatial computing—the ability to interact with virtual imagery displayed without obstructing a user’s view of the real world—won’t be limited to pricey virtual- and augmented-reality headsets. The technology will be prevalent on almost any internet-connected device with a screen, from car navigation systems and kitchen appliances to digital door locks and mall kiosks.

Online sports betting will continue to grow and evolve. The activity became legal five years ago, and it is now available in 35 states. Activate forecasts that U.S. adults will collectively wager $186 billion annually by 2027, up from about $123 billion today. Another change: Sportsbooks today rely on extensive sign-up and referral bonuses to attract new customers, but going forward retention will be driven by improved betting options and user experiences.

While the average U.S. adult will spend 13 hours a day multitasking by 2027, the majority of the time will entail watching video, followed by listening to music, podcasts and other audio, and playing videogames. How consumers will spend this time with technology and media will differ across generations. For example, YouTube and other social-media platforms will become the top destinations for younger adults looking to discover new music, while those over the age of 35 will still rely on the radio.

There are Corvette fans for whom the base US$68,300 car is plenty powerful enough. After all, it produces 495 horsepower and can reach 60 miles per hour in 2.9 seconds. But hold on, there’s also the approximately US$115,000 Z06—with 670 horsepower and able to reach 60 in 2.6 seconds. These split seconds are important for busy people—and for marketing claims. And if that’s not enough go power, there’s the even more formidable 900-horsepower ZR1 version of the Corvette, starting around US$150,000. The hybrid E-Ray, at US$104,900, is pretty potent, too.

But if they’re still too slow, fans of American-engineered muscle can consider the exclusive Texas-built Hennessey Venom F5, a limited-edition carbon-fibre hypercar. Ten years ago, the Hennessey became the world’s fastest production car, defeating the Bugatti Veyron Super Sport, with a top speed of 270.49 miles per hour.

That world title is much sought after, and is currently held by the Sweden-built 1,600-horsepower Koenigsegg Jesko Absolut, with a two-way average top speed of 277.8 mph. But Hennessey is still very much a contender. The company is hoping the 1,817-horsepower F5 (with 1,192 pound-feet of torque) can exceed 300 mph on the track this year.

The Hennessey Venom F5 coupe is sold out, despite a more than $2 million price tag.
Hennessey photo

Hennessey’s previous Venom GT model (introduced in 2010) was based on the Lotus Exige, with a GM LS-based engine, and was built by partner Delta Motorsport. Spokesman Jon Visscher tells Penta , “The new Venom F5, revealed in 2020, is a 100%bespoke creation—unique to Hennessey and featuring a Hennessey-designed 6.6-litre twin-turbo V8 engine boasting 1,817 horsepower, making it the world’s most powerful combustion-engine production car.” Leaps in performance like this tend to be pricey.

This is a very exclusive automobile, priced around US$2.5 million for the coupe, and US$3 million for the F5 Roadster announced in 2023. Only 30 Roadsters will be built, with a removable carbon-fiber roof. The 24 F5 coupes were spoken for in 2021, but if you really want one you could find a used example—or go topless. In a statement to Penta , company founder and CEO John Hennessey said that while the coupe “is now sold out, a handful of build slots remain for our Roadster and [track-focused] Revolution models.”

Only 24 Revolutions will be built in coupe form, priced at US$2.7 million. There’s also a rarefied roadster version of the Revolution, with just 12 to be built.

The Venom F5 Roadster has a removable carbon-fibre roof.
Hennessey photo

The Venom F5 coupe weighs only 3,000 pounds, and it’s not surprising that insane speeds are possible when combined with a hand-built motor (nicknamed “Fury”) created with power uppermost. The V8 in the F5, installed in a rear mid-engine configuration, has a custom engine block and lightweight forged aluminium pistons, billet-steel crankshaft, and forged-steel connecting rods. Twin turbochargers are featured. The F5 can reach 62 mph in less than three seconds, but top speed seems to be its claim to fame.

The driver shifts the rear-wheel-drive car via a seven-speed, single-clutch transmission with paddle shifters. The interior is not as spartan or as tight as in many other supercars, and is able to handle very tall people. The butterfly doors lift up for access.

“With 22 customer Venom F5 hypercars already delivered to customers around the world, and a newly expanded engineering team, we’re focusing the Venom F5 on delivering on its potential,” Hennessey says. “Breaking 300 mph in two directions is the goal we aim to achieve toward the end of this year to claim the ‘world’s fastest production car’ title.”

Hennessey says the car and team are ready. “Now the search is on for a runway or public road with a sufficiently long straight to allow our 1,817-horsepower, twin-turbo V8 monster to accelerate beyond 300 mph and return to zero safely.” The very competitive Hennessey said the track-focused Revolution version of the F5 set a fastest production car lap around Texas’ 3.41-mile Circuit of the Americas track in March, going almost seven seconds faster than a McLaren P1.

The Revolution features a roof-mounted central air scoop (to deliver cool air to the engine bay), a full-width rear carbon wing, larger front splitter and rear diffuser, tweaked suspension, and engine cooling. It’s got the same powertrain as the standard cars, but is enhanced to stay planted at otherworldly speeds.

How Generative AI Will Change the Way You Use the Web, From Search to Shopping

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts