The New Supply Chain Battle: AI Discoverability

A major change in B2B purchasing behaviour is underway as decision-makers increasingly turn to AI for supplier discovery and vetting.

This adoption of AI tools could represent a fundamental change in how B2B organisations approach their marketing and sales strategies. F

or suppliers, the challenge is now to ensure they are visible and trusted not just by humans but by algorithms.

Research from PR agency Magenta Associates has revealed that 66% of UK senior decision-makers with B2B buying power now use AI tools such as ChatGPT, Copilot and Perplexity to research and evaluate potential suppliers.

The study, which surveyed 300 UK business leaders, highlights the level of confidence buyers place in these systems.

AI recommendations and buyer trust

The data shows a high degree of trust in AI-generated recommendations. According to the Magenta Associates research, 90% of decision-makers using these tools trust the suggestions they are given and 85% have discovered a new supplier through an AI response.

This confidence in algorithmic sourcing could see traditional marketing channels become less relevant if suppliers do not optimise for AI discoverability.

AI has already overtaken some established B2B marketing channels.

The research found that 45% of decision-makers now list AI as a primary channel for supplier research, placing it ahead of LinkedIn at 41% and industry publications at 34%.

However, the findings also suggest that AI acts more as a discovery layer than a complete replacement for direct engagement. A combined 83% of users report they "always" (40%) or "often" (43%) visit the websites of suppliers mentioned in AI responses.

This could suggest a need for a dual approach where content is optimised for both AI algorithms and for direct visitor engagement.

The challenge of AI discoverability

The competitive implications of this trend are notable, particularly regarding the concentration of AI recommendations.

According to the research, just 5 brands are mentioned across 80% of the top AI-generated responses for any given B2B category.

This could create a binary environment for suppliers where they are either recommended by AI and visible, or they are effectively invisible to a growing portion of the market.

"The buyer journey has fundamentally changed," says Jo Sutherland, Managing Director at Magenta Associates.

She adds: "Increasingly, AI is now the place where decisions begin. Marketers who understand how to create content discoverable and trustworthy enough to be surfaced by AI will have a clear competitive edge."

This trend could also mean that investment in traditional search engine optimisation offers diminishing returns. Gartner predicts that search engine volume will fall by 25% by 2026 as users turn to AI chatbots for answers.

This aligns with data showing that ChatGPT search traffic alone grew 85% between January and June 2024.

Content transparency and demographic trends

The research from Magenta Associates also highlights the type of content that could influence AI recommendations.

71% of decision-makers stated they would avoid suppliers that do not provide clear, transparent information, while 69% would be deterred by negative reviews.

For B2B marketers, this could indicate that AI systems are being designed to prioritise content that demonstrates transparency and has positive third-party validation.

Demographic data shows that younger buyers are leading this trend. Among 25 to 34-year-olds, 85% use AI tools for supplier research. This figure drops to 33% for those aged 45 to 54 and 23% for the 55 to 64 age group.

Suppliers with a younger customer base may need to prioritise their AI optimisation strategy more urgently.

"AI is a co-pilot, not an autopilot," adds Oluwatobi Folasade Balogun, CEO of SustainWyse.

"It's changing how people find and trust brands, but it still needs human judgment to ensure quality tone and ethics."

As AI's role in procurement expands, it brings new pressures for suppliers to ensure the accuracy and transparency of their information, including any sustainability claims they make.