Consumer behavior is rapidly evolving as AI-powered chatbots and large language models (LLMs) become the preferred tools for product discovery. According to recent market data, American shoppers this holiday season are expected to rely more on AI to find gifts, deals, and promotions, shifting away from traditional search engines like Google. Retailers could experience as much as a 520% surge in traffic from chatbot-driven queries in 2025 compared to 2024. This phenomenon compels brands to adapt quickly to ensure visibility within AI-generated recommendations.
The Prompting Company: Innovating AI-Optimized Product Mentions
Founded just four months ago by Kevin Chandra, Michelle Marcelline, and Albert Purnama, The Prompting Company is a Y Combinator-backed startup focused on enabling brands to secure product mentions within AI applications such as ChatGPT. The company employs a novel strategy called generative engine optimization (GEO), designed for a future where AI agents autonomously browse and interact with the web on behalf of users. The startup recently closed a $6.5 million seed round led by Peak XV Partners, Base10, Y Combinator, Firedrop, and several angel investors. Its client roster includes fintech and SaaS companies like Rippling, Rho, Motion, and even a Fortune 10 enterprise.
“Over the past year, most of the growth on websites has come from AI bots, not people,” said CEO Kevin Chandra. “We’re already seeing developers ask AI tools for product recommendations inside their workflows, and we think people, over time, will be less involved in parts of the purchasing funnel.”
Generative Engine Optimization: The Next Frontier in Marketing
Unlike traditional SEO, which optimizes content for human users and search engine algorithms, GEO focuses on tailoring content specifically for AI agents. This entails creating AI-facing websites stripped of typical human-centric elements like navigation bars, pop-ups, and marketing fluff. The Prompting Company’s platform analyzes the purchase-intent queries AI agents use and generates structured, AI-optimized pages that directly answer these questions. This enables LLMs to cite client content even if it doesn’t rank highly in conventional search results.
“Most businesses still design websites only for humans,” Chandra explained. “But the fastest-growing segment of users on the internet today is AI agents and they need a completely different interface.”
Shaping the Future of AI-Driven Commerce
Emerging technologies like Google’s Agent2Agent framework and OpenAI’s integration with Stripe are paving the way for AI agents to not only discover products but also complete transactions autonomously. This evolution could transform e-commerce by moving AI from a discovery tool to a full-service purchasing assistant.
- AI agents may soon browse e-commerce sites, compare products, execute purchases, and manage returns independently.
- The Prompting Company is preparing clients for this shift by exposing transactional functionalities to AI agents.
- Attribution models and advertising strategies are expected to evolve alongside these capabilities.
Currently, The Prompting Company hosts approximately half a million AI-optimized pages and drives tens of millions of visits monthly for its clients, operating on a subscription model based on prompt tracking and page hosting.
Founders’ Track Record and Strategic Vision
The founders, Indonesian immigrants who met during their freshman year, bring a strong entrepreneurial pedigree. They previously built Typedream, a YC-backed AI website builder acquired by beehiiv, and Cotter, a passwordless authentication SDK acquired by Stytch. With The Prompting Company, they aim to redefine product discovery and purchasing in the AI era, leveraging their expertise to build infrastructure that addresses the nascent market of AI-driven commerce.
Arnav Sahu, partner at Peak XV Partners, commented: “If your product isn’t discovered or cited in ChatGPT, you’re ngmi. We’re thrilled to back The Prompting Company as they build the core infrastructure for product discovery — already powering Fortune 10 companies and fast-growing startups.”
FinOracleAI — Market View
The Prompting Company is strategically positioned at the intersection of AI evolution and digital marketing, addressing a critical shift in how consumers discover and purchase products. Its GEO approach anticipates the growing dominance of AI agents as primary internet users.
- Opportunities: Early mover advantage in AI-optimized content creation; growing demand for AI-friendly marketing; potential expansion into AI-driven transaction facilitation.
- Risks: Dependence on AI platform adoption and evolving agent protocols; competition from other SEO and AI marketing startups; uncertainty in attribution and monetization models.
Impact: The Prompting Company’s innovative approach and robust funding position it as a key player shaping AI-driven product discovery, with significant implications for e-commerce and digital marketing strategies.
