NerdWallet: LLM Referrals Convert Much Better, Licensing Regulations A Barrier to AI Shopping Takeover

“…in terms of what we’re seeing on our side, the conversion rates on that LLM referral traffic are much higher and growing rapidly,” said NerdWallet CEO Tim Chen during the Q4 earnings call. “People, I think, are searching more both on traditional search engines as well as LLMs.”

NerdWallet had taken a hit on organic search traffic throughout 2025 due to search engines like Google adjusting organic search layouts and rankings but they’ve made up for the lost business by a combination of paid marketing and referrals coming in from AI. Although the AI LLM traffic isn’t enough to replace the loss in organic search traffic, those referrals are said to have a much better conversion rate. The LLMs themselves aren’t a threat to replace the entire shopping experience, however, because of existing regulations.

“I mean I think if you think about the scenario where you’re trying to do some form of agentic shopping or LLMs are trying to get more integrated, there’s kind of 2 obstacles you really need to think about,” said Chen.
So the first is regulatory. For example, you can’t get an insurance quote from someone without an insurance license. And so if you look across, for example, credit, insurance, mortgages and investing, they require licensing where institutions need deterministic and compliant outputs, not probabilistic answers.”

NerdWallet is a platform that connects consumers and SMBs with financial products.