Retail in America podcast

Prompt Local: How One Word Changes Who Gets Found, with Dax Dasilva from Lightspeed

0:00
37:53
Rewind 15 seconds
Fast Forward 15 seconds

If AI decides who gets found, what happens to the independent store with the best people in town?

New research Lightspeed commissioned from Vaer AI found that AI recommends big retailers over local businesses 9 out of 10 times. More than half of shoppers have already used AI to help decide what to buy. For a lot of people, the first store they visit is now a chat window, and it shows the big names first.

Dax Dasilva founded Lightspeed in Montreal in 2005 to help independent businesses compete with bigger ones. Today it powers retail and hospitality businesses in more than 100 countries. He also founded Age of Union, a nonprofit alliance protecting threatened ecosystems around the world, and wrote Age of Union and Echoes from Eden.

Dax explains why AI shopping assistants lean toward national chains, and why the gap gets wider the more specific a shopper's search gets. His advice for shoppers is simple: add "independent," "local" or "locally owned" to the prompt. "Remember that your prompt matters."

For store owners, he's just as practical. Twenty years ago, a great location, great products and great people were enough. Today an owner has to be an expert in social media, merchandising, loyalty, omnichannel and now AI search, often after getting into the business "because you love bikes." His advice: pick one channel where you can show your expertise, whether that's content, reviews, a blog or an online showroom, and own it. Then let AI agents take on the back-office work, "like co-managers for you in your business," so owners can get back to curation, customers and community.

Looking ahead to NRF's Big Show, Dax wants the industry talking about discoverability. "Small business is the engine of the economy. They can't be cut out by AI and the model makers."

The one thing you can do: Next time you ask AI where to shop, ask "Where can I buy this from an independent business near me?" Prompt local.

In this episode:

  • What Lightspeed does, and why Dax built it for independent retailers
  • From the Apple Store to the age of AI: 20 years of retail change
  • Why agentic AI matters most for small retailers
  • The research: AI picks national chains 9 out of 10 times
  • Why the gap widens the closer a shopper gets to buying
  • Content, reviews and social: what stores can control
  • From SEO to AEO: getting found by AI instead of search engines
  • One thing a small retailer can do this week
  • Five years out: third spaces and the store as a gathering place
  • Age of Union, Echoes from Eden and the ROI on nature
  • The conversation the industry should be having at NRF

Prompt Local research: https://www.lightspeedhq.com/ai-retail-guide-teaser/

Find Dax: https://www.linkedin.com/in/daxdasilva/

lightspeedhq.com

Age of Union: https://ageofunion.com/

Find Ron: https://www.linkedin.com/in/rthurston/

Disclosure: This episode is part of a paid partnership with Lightspeed.

More episodes from "Retail in America"