UPDATE: The holiday shopping season is set to be transformed as new AI shopping bots flood the market, offering innovative features just in time for a projected record $253 billion in online spending. Tech giants like Amazon.com Inc. and OpenAI are racing to reshape consumer buying habits, introducing tools that promise to change how shoppers find gifts.
Developing today, Amazon’s AI assistant, Rufus, has been enhanced to be a “state-of-the-art shopping companion,” while Google has launched an agentic checkout feature designed to ease the purchasing process. Meanwhile, OpenAI’s new ChatGPT tool offers personalized gift recommendations, adding significant competition to the market.
As consumers increasingly seek convenience, more than 1 in 3 US consumers have reported using AI tools to assist with online shopping, primarily for research purposes, according to an Adobe Inc. survey from September. This shift signals a growing desire for more intuitive shopping experiences as traditional e-commerce methods feel outdated.
The rise of “agentic commerce”—a term for automated agents helping consumers buy products—could become a $1 trillion market in the US by 2030, according to a report by McKinsey & Co.. However, the current landscape is still in its experimental stages, with companies grappling with technical challenges and developing partnerships to refine their offerings.
In a recent test conducted by Bloomberg, several AI bots were asked to recommend gifts for Mother’s Day. The top suggestion from multiple bots, including Amazon’s Rufus and Walmart’s Sparky, was a cozy bathrobe. Rufus even personalized its recommendations based on user preferences, showcasing the potential for AI to enhance shopping experiences.
Amid these advancements, experts have noted that many bots still struggle with accuracy in pricing and product details. Amazon CEO Andy Jassy highlighted that current AI tools often fail to tailor recommendations effectively and can misrepresent important information.
While AI-driven shopping offers a more user-friendly alternative to traditional browsing, many bots still fall short of improving the overall shopping experience. The technology is evolving, with significant investment aimed at overcoming obstacles. Firms like Anthropic PBC and Alphabet Inc.‘s Google are developing protocols to enhance communication between agents and consumers, while Microsoft is rolling out tools to make websites more accessible for AI interaction.
In Bloomberg’s gift-for-mom experiment, Rufus distinguished itself by asking clarifying questions to tailor its recommendations, while OpenAI’s ChatGPT is also moving in this direction by prompting users for additional information. However, users are cautioned to verify details directly on retailer websites, as AI tools may not always provide accurate pricing and availability.
As the holiday shopping rush approaches, the impact of these new AI tools on consumer behavior remains to be seen. Analysts, like Emily Pfeiffer from Forrester Research, suggest that while the technology is promising, it may not significantly change shopping habits this season.
With Walmart now allowing purchases directly through ChatGPT, the pressure is on for AI companies to establish partnerships that streamline the purchasing process. The ultimate goal is to enable users to browse and buy without navigating away from their chat interfaces, enhancing the overall shopping experience.
In summary, as the landscape of online shopping continues to evolve, consumers are encouraged to explore the latest AI tools. These innovations promise to make holiday shopping more efficient, but it remains crucial for shoppers to stay informed and verify details before making purchases. Stay tuned for further updates as this exciting technology develops.
