The role of artificial intelligence in entertainment has expanded significantly, with a majority of consumers recognising its growing influence on content discovery, according to Gracenote’s 2026 report on TV search and discovery.
The report has found that 66% of U.S. consumers have said AI will be important in delivering better entertainment experiences. As per media reports, 75% of users have stated they verify AI chatbot responses due to concerns about accuracy, indicating a persistent trust gap despite rising adoption.
AI usage has increased across demographics, particularly among younger audiences. Around 80% of Gen Alpha users have reported increased chatbot usage over the past 18 months, with 54% using these tools daily. Overall, 75% of users have said they engage with AI chatbots multiple times a week or more.
Content discovery challenges have continued to grow alongside the expansion of streaming platforms. Viewers have spent an average of 14 minutes searching for content, while users aged 18–34 have spent up to 16 minutes. This friction has impacted subscription retention, with 54% of users in this age group stating they would consider cancelling a service if they cannot find relevant content.
The report has also highlighted the scale of content fragmentation, with over 1.8 million program titles across nearly 350 SVOD catalogues and around 210,000 titles across more than 2,100 FAST channels. Despite this volume, 26% of users have said they know what they want to watch but are unable to find it.
Consumer sentiment has reflected growing fatigue, with 51% stating that too many streaming services have made it harder to find content, and 32% saying the abundance of choice has negatively affected their viewing experience.
AI-powered tools have emerged as a potential solution, offering conversational and personalised search experiences. However, accuracy has remained inconsistent, with studies indicating that only two-thirds of chatbot responses correctly identify where to find specific content, and just 31% provide direct links.
The broader market outlook has underscored the importance of improving discovery, with global OTT and pay TV spending projected to reach $318.5 billion by 2029, and OTT expected to surpass pay TV by 2027.
The report has concluded that while AI is set to become a core component of content discovery, its effectiveness will depend on improving accuracy, trust, and the quality of underlying data.
