Google announced on March 10, 2024, that it is enhancing its AI chatbot, Gemini, to serve as a virtual shopping assistant. This upgrade includes collaborations with major retailers such as Walmart, Shopify, and Wayfair, enabling customers to make purchases directly through the chat interface. The new feature will allow users to check out instantly from participating businesses without leaving the Gemini app.
This development was revealed during the National Retail Federation’s annual convention in New York, which is expected to attract around 40,000 attendees from various retail and technology sectors. Discussions at the event will largely focus on the role of artificial intelligence in e-commerce and its effects on consumer behavior.
In a joint statement, John Furner, Walmart’s incoming president and CEO, and Sundar Pichai, Google’s CEO, emphasized the significance of this transition. “The transition from traditional web or app search to agent-led commerce represents the next great evolution in retail,” they stated.
The Gemini shopping feature operates by responding to user inquiries. For instance, if someone asks for recommendations on equipment for a winter ski trip, Gemini will display options from the inventory of its partnered retailers. Customers linking their Walmart and Gemini accounts will benefit from personalized suggestions based on their purchase history. Products selected via the chatbot can be integrated into their existing Walmart or Sam’s Club online shopping carts.
This initiative follows a similar collaboration between OpenAI and Walmart announced in October 2023, which introduced an instant checkout feature for ChatGPT users, allowing them to purchase nearly all items on Walmart’s website, excluding fresh food.
As competition intensifies, companies like Google, OpenAI, and Amazon are racing to create seamless AI-powered shopping experiences that facilitate transactions without redirecting users to retailer websites. According to a report from Salesforce, AI influenced $272 billion, or approximately 20%, of global retail sales during the holiday shopping season.
Currently, the AI-assisted shopping features within Gemini will only be available to users in the United States, with plans for international expansion in the coming months. The goal of integrating chatbots into e-commerce is to simplify the shopping process. Consumers can engage in a conversational format, using voice dictation or typed queries, allowing for a more interactive search experience.
At the conference, Mike Edmonds, vice president of agentic commerce and commercial growth at PayPal, noted that the shift towards agent-led commerce will not happen instantaneously. He urged retailers to proactively adapt rather than adopt a passive approach.
Meanwhile, Tobi Lutke, founder and CEO of Shopify, highlighted the importance of balancing automation with personalized service. He stated, “Many people like the experience of having a personal shopper who really gets them.” Lutke emphasized that while technology should assist in finding products, the final decision should remain in the hands of the shopper.
Walmart continues to innovate in its delivery services as well. Furner announced plans to expand the company’s drone delivery service to an additional 150 locations in partnership with Wing, a division of Alphabet. This expansion aims to increase Walmart’s drone delivery sites to 270 by 2027, covering areas from Los Angeles to Miami.
As the integration of AI in retail evolves, it becomes clear that the partnership between tech giants and retailers is set to redefine the shopping experience, making it more intuitive and accessible for consumers worldwide.
