How AI Agents Could Disrupt Consumer Industries

Buying a vehicle remains a complex process. Consumers must navigate thousands of listings and dealerships, compare offers that are not always standardized, evaluate financing and trade-in terms, and often negotiate the final price.

AI agents could simplify much of that process by searching available vehicles, comparing total transaction costs, evaluating financing options and helping consumers negotiate and complete purchases.

“The result could be greater price transparency and less value attached to brand recognition and customer acquisition, putting more emphasis on who actually has the best vehicle, at the best price, with the best execution,” says Daniela Haigian, a U.S. Auto Retail Analyst at Morgan Stanley Research. “The more exposed business models could be those that disproportionately benefit from consumer search friction or less-transparent transaction economics.” 

Large, low-cost auto retailers may be especially well positioned if they combine large national inventories with in-house logistics, vehicle reconditioning capabilities and digital platforms that support the entire purchasing process, from discovery through financing, trade-in and purchase.

Additionally, AI agents could also help competitively priced local dealerships reach consumers who might not otherwise discover their inventory.

In retail, price, delivery speed and product selections are likely to remain key competitive advantages as AI agents take on a larger role in shopping.

Retailers that perform well across these areas should be able to hold or even gain market share. But customer loyalty and trust could prove equally important.

“Consumers may be willing to use agents for inspiration and discovery, but less willing to shift their data and transactions away from trusted retail platforms that already know their purchase history and have established reliability around price, delivery and service,” says Simeon Gutman, who covers hardlines, broadlines and food retail for Morgan Stanley Research.

While established retailers with extensive customer data, reliable delivery networks and strong customer relationships may retain an advantage in completing transactions, their advertising businesses could face greater disruption.

Retail media networks earn advertising revenue by working with brands to promote products within retailers’ websites and apps. If consumers increasingly begin product searches through AI agents instead, some of that advertising revenue could shift to the platforms influencing purchasing decisions.

“That creates a more meaningful risk to retail media, as a portion of the advertising dollars currently captured by retailers could migrate toward the agents influencing what consumers discover and ultimately buy,” Gutman says. “This risk is likely greatest for retailers with large, high-margin retail-media businesses and differentiated first-party audiences.”

The potential shift highlights an important distinction for retailers: AI agents may have a greater impact on how shoppers discover products rather than where they ultimately complete purchases.

In media and entertainment, AI agents are likely to reshape how consumers find events and purchase tickets. Primary ticketing platforms that have exclusive access to certain ticket inventory could benefit from the improved customer experience.

Resale marketplaces, which often compete to sell largely the same tickets as the primary ticketing platforms, may face greater competitive risk as AI agents make it easier for consumers to compare prices and fees.

“That shift may put pressure on larger resale platforms to lower fees or prices to remain competitive, particularly if smaller players gain an advantage through AI partnerships,” says Cameron Mansson-Perrone, who leads Morgan Stanley Research’s coverage of music and live entertainment.

The spread of consumer AI agents could increase the demand for services by making it easier for consumers to find, compare and purchase them. This could increase software use in several areas, including: 

Transportation/Ride-Hailing Software: AI agents could make transportation decisions based on price, travel time and convenience, potentially benefiting providers that offer lower fares and faster commutes.

Local Services: An AI agent could identify an available HVAC technician, compare prices and customer reviews and book an appointment without consumers having to search for or contact multiple providers. Because local services are highly fragmented, this could generate additional business for tradespeople and benefit software platforms that connect consumers with service providers.

Insurance Software: Many minor and moderate accidents currently go unreported because consumers are uncertain whether filing a claim is worthwhile or want to avoid a complicated claims process. By simplifying the submission process, AI agents could bring more claims into the insurance system, increasing transaction volumes for software providers serving the industry.

Investors have recently grown concerned about how AI agents could affect insurance stocks, particularly auto insurers.

By making it easier for consumers to compare auto and life insurance policies, agents could intensify price competition, putting pressure on premiums and profit margins.

However, AI could also create opportunities for insurers.

“AI capabilities are evolving, and we have no doubt that more advanced AI will change the insurance industry,” says Bob Jian Huang, who covers the life and property and casualty insurance industries for Morgan Stanley Research.

“However, insurers are not waiting for AI to disrupt: they’re likely to respond by adopting AI innovations and evolve alongside technology rather than stand still.”

Insurers could offset some competitive pressure by using AI to lower operating costs, including relying less on labor-intensive brokerage services. New technologies, such as self-driving cars, could also create new opportunities, while AI-enabled tools could encourage more consumers to shop for insurance.

Even the pest control industry could be disrupted as AI changes how consumers find local services to eliminate rodents, bed bugs, birds and other kinds of unwanted wildlife disruption.

AI searches are recommending independent pest control companies more frequently than larger, publicly traded competitors, potentially challenging the advantages of national scale and brand recognition.

One contributing factor is the growing role of private equity in the industry.

Private equity-backed pest control companies now account for approximately 16% of combined revenue among the top 100 U.S. companies in the sector, up from just 1% a decade ago. Mergers and new investment have helped smaller providers build more sophisticated operations and compete more effectively.

“The advantages of national scale and brand awareness of bigger firms may not be translating into equivalent visibility within AI-driven local search,” says Annelies Vermeulen, Head of the European Business Services Research at Morgan Stanley. “We see a risk of agentic AI continuing to take share from larger players, further impeding prospects of market share recovery and pressuring margins.”