Transforming Retail: How New Gen is Leading the AI Commerce Revolution
In today's technologically advanced world, the intersection of artificial intelligence and commerce has never been more significant. With backing of $4.5 million in seed funding, the San Francisco-based startup New Generation, or New Gen, is stepping into the spotlight as a pioneer in AI-native commerce. The company aims to redefine digital retailing by equipping brands with tools that cater to both human consumers and AI-driven shopping agents.
A Shift in Consumer Expectations
As AI platforms such as ChatGPT continue to evolve, they significantly influence how individuals and automated systems search for products and make purchases. In fact, data indicates that between July 2024 and February 2025, traffic to U.S. retail websites coming from generative AI sources skyrocketed, increasing by 1,200%. This surge signifies a pressing need for brands to adapt their online shopping experiences to match the conversational and intelligent demands of the AI-first future.
Custom AI-Powered Experiences
New Gen’s revolutionary approach provides each brand with its unique AI-driven shopping page. These pages are tailored to create individualized experiences for every visitor, breaking away from the rigid navigation structures of traditional retail websites. Co-founder Jonathan Arena highlights that “we're solving this by creating AI-native storefronts that deliver instant answers and visual, generative experiences.” In an era where immediacy and relevance are paramount, brands that resist this shift may find themselves losing sales to more agile competitors.
The platform transforms traditional product catalogs into rich, AI-readable data that supports dynamic interfaces. Customers can easily interact with these virtual storefronts through natural language queries, allowing for immediate access to personalized shopping experiences. Additionally, AI agents will find structured information through dedicated AI subdomains. This strategy not only streamlines user experiences but also positions brands effectively to tap into the growing AI shopper market.
A New Era of Sales
With New Gen’s innovative system, consumers who arrive through AI channels are likely to engage at a deeper level in the sales funnel, often prepared to make more significant purchases than those who navigate traditional retail setups. The intelligent platform dynamically adapts to each visitor's intent, optimizing conversion rates for AI-driven traffic by providing relevant, context-sensitive product recommendations and answers.
Co-founder Adam Behrens emphasizes the difference in shopping landscapes, stating that “commerce is entering a conversational, AI-driven era where customers expect direct answers, not a scavenger hunt.” As programmatic advertising shifted the landscape from static banners to targeted solutions, AI will drive similar changes in product discovery and purchasing processes.
The Role of AI-Native Storefronts
The New Gen platform allows brands to leverage AI-native storefronts that adjust flexibly based on customer inquiries. Identified as “visual answer engines,” these interfaces instantly offer pertinent results without forcing users to navigate convoluted pathways, thereby enhancing user satisfaction and engagement. Moreover, brands gain deeper insights into consumer behavior while retaining control over their creative and data management.
Having emerged from stealth mode this year, following its substantial seed funding led by South Park Commons and other investor partners, New Gen is already collaborating with early enterprise partners. This collaboration aims to facilitate instant checkouts for evolving shopping experiences.
Addressing the Future of AI Commerce
Founders Behrens and Arena, both Harvard Business School alumni, leverage extensive backgrounds from renowned companies—Stripe, Meta, and Patreon—bringing a multifaceted view of the landscape’s future. Looking ahead, Evan Tana, a partner at South Park Commons, asserts that “brands that embrace this shift early will capture the next wave of high-intent shoppers arriving through conversational AI channels.”
To learn more about New Gen and explore the next generation of digital retail, visit
www.new-gen.ai. With their innovative technology, New Gen is set to guide brands into an era defined by AI-enhanced commerce—empowering them to meet the expectations of modern shoppers in a world increasingly influenced by artificial intelligence.