URGENT UPDATE: New AI shopping tools are taking the market by storm just in time for the holiday season as consumers are projected to spend a record $253 billion online. Amazingly, these advanced bots are all suggesting similar gifts for moms, indicating a shift in how people will shop this year.
Amazon’s AI shopping assistant, Rufus, has unveiled new features that enhance its capabilities, promising to deliver a “faster, more useful” shopping experience. Simultaneously, OpenAI has introduced a free ChatGPT tool that generates personalized gift-buying guides, reinforcing the trend of AI integration into consumer purchasing.
As the holiday shopping rush approaches, the landscape of e-commerce is evolving rapidly. According to a September survey by Adobe Inc., more than 1 in 3 US consumers have already utilized AI tools for online shopping, primarily for product research. The consulting firm McKinsey & Co. predicts that the emerging field of agentic commerce—where automated agents assist in purchases—could soar to a staggering $1 trillion business in the US by 2030.
However, the current state of AI shopping tools is still in a developmental phase. Many companies face technical challenges and are experimenting with various features to find what resonates with users. In a recent test conducted by Bloomberg, several AI bots—including Amazon’s Rufus, OpenAI’s ChatGPT, and Walmart’s Sparky—were asked to recommend gifts for moms. The unanimous top suggestion? A cozy bathrobe.
Walmart’s Sparky suggested a pink hooded robe with “Mama Bear” emblazoned on it, while ChatGPT recommended a robe from Victoria’s Secret. Meanwhile, Perplexity Inc.’s AI offered a $20 wooden photo frame from Etsy, highlighting the bots’ reliance on similar product recommendations.
Analyst Emily Pfeiffer from Forrester Research remarked, “There are a lot of really big bets being made right now that consumers want to shop differently,” yet she cautioned that immediate impacts on this holiday season may be limited.
The appeal of AI-enhanced shopping is clear: navigating vast product selections can be tedious. Instead of scrolling through countless listings, users can simply ask a chatbot for specific items, such as “Find me a pair of well-reviewed hiking boots in my size, under $100.” This streamlined experience is proving to be more user-friendly.
Preliminary data from Similarweb Ltd. indicates that shoppers who interact with AI tools like ChatGPT tend to be more informed and ready to make purchases compared to traditional Google searches. However, Amazon CEO Andy Jassy has expressed skepticism about the current effectiveness of these AI tools, noting that they often fail to tailor shopping experiences and can present inaccurate pricing and delivery estimates.
The architecture of retailers’ websites has adapted over time to accommodate bots, yet they were not originally designed for this purpose. Many shopping chatbots simply link to product listings without offering any significant innovation. Companies like Anthropic PBC and Alphabet Inc. (Google) are working on protocols to improve communication between AI agents and retail catalogs, while Microsoft is enhancing tools that enable agents to navigate websites more effectively.
Despite these advancements, the path forward remains challenging. Amazon remains protective of its customer data and has recently sued Perplexity to prevent it from facilitating purchases on its platform, indicating the competitive stakes involved.
On the other hand, Walmart is showing a willingness to collaborate. The retailer is in the process of rolling out a feature allowing shoppers to purchase items directly through ChatGPT, a move that could redefine the shopping experience.
OpenAI’s new tool is also evolving. It now asks users clarifying questions before providing gift suggestions, moving towards a more personalized approach. Users can describe their gift needs and engage in a quiz format, which helps refine searches based on their preferences.
As these technologies develop, experts emphasize the importance of simplifying the purchasing process for consumers. Juozas Kaziukenas, an independent e-commerce analyst, pointed out that without seamless buying options, AI tools may only serve as research assistants.
The holiday shopping season is poised for a transformation, driven by AI. As these tools evolve and companies refine their capabilities, consumers can expect a shopping experience that is faster, more intuitive, and increasingly personalized. The question remains: will these innovations fundamentally change how we shop this holiday season, or is this merely the beginning of a longer journey towards a new era of commerce?