New AI Shopping Bots Launch Just in Time for Holiday Season

UPDATE: New artificial intelligence shopping bots have launched just in time for the holiday season, transforming the way consumers shop online. As shoppers gear up for a record $253 billion in online spending, the race is on for tech companies and retailers to integrate AI tools that streamline the shopping experience.

Amazon.com Inc.’s AI shopping assistant, Rufus, has been upgraded to provide faster and more personalized shopping suggestions. Meanwhile, Google has introduced an agentic checkout feature designed to help consumers find the perfect gifts without exceeding their budgets. OpenAI’s new ChatGPT tool also promises personalized gift-buying guidance, marking a significant shift in e-commerce dynamics.

According to a recent survey by Adobe Inc., over 1 in 3 U.S. consumers have utilized AI tools for online shopping, primarily for product research. This trend is set to expand, with McKinsey & Co. projecting that agentic commerce could evolve into a $1 trillion industry in the U.S. by 2030.

Despite the excitement, these AI shopping tools are still in the experimental phase. Companies are grappling with technical challenges and forming partnerships as they attempt to optimize these services. In a recent test by Bloomberg, various AI bots, including Rufus, OpenAI’s ChatGPT, and Walmart Inc.’s Sparky, were asked for Christmas gift suggestions for moms. The unanimous top pick? A cozy bathrobe.

Emily Pfeiffer, an analyst at Forrester Research Inc., shared insights on the shifting landscape: “There are a lot of really big bets being made right now that consumers want to shop differently and that chat is the way they want to start shopping.” However, she cautioned that these changes might not drastically alter shopping habits this holiday season.

The advantages of AI-driven commerce are clear. Consumers often find navigating through countless products tedious and overwhelming. Asking a chatbot for specific items, such as “well-reviewed hiking boots under $100,” offers a more intuitive shopping experience. Early data also suggests that shoppers referred to retailers by ChatGPT are more informed and ready to make purchases compared to those who conduct traditional Google searches.

However, challenges remain. Amazon CEO Andy Jassy acknowledged that many shopping bots struggle with personalization and often provide inaccurate pricing and delivery estimates. Currently, bots typically redirect users to retailers’ websites instead of facilitating direct purchases, limiting their potential impact.

Efforts to enhance these technologies are underway. Both Anthropic PBC and Alphabet Inc.’s Google are developing protocols to improve how AI agents communicate, while Microsoft has introduced tools to help businesses adapt their websites for better bot interaction. As these companies work to refine AI models capable of understanding online catalogs, the shopping landscape is poised for transformation.

Amazon’s Rufus is leading the charge, having launched in February 2024. It actively engages users by asking about their preferences before making recommendations. In one instance, when asked for a gift for a mom who enjoys classic films, Rufus suggested a DVD set featuring stars Spencer Tracy and Katharine Hepburn.

OpenAI is similarly evolving its tool. The latest iteration prompts users with clarifying questions and gathers data from credible sources like Reddit to provide trustworthy suggestions. Users can specify requirements for gifts, and the tool will respond with tailored recommendations, enhancing the shopping experience.

While excitement builds around AI shopping bots, experts warn that these tools are still developing. OpenAI advises users to visit retailer websites for the most accurate product details, acknowledging that the tool may occasionally misrepresent prices or availability.

As the holiday season approaches, the question remains: will AI shopping bots revolutionize consumer behavior, or will they falter in their efforts to create a seamless shopping experience? The next few weeks will be pivotal as both consumers and tech companies navigate this rapidly changing landscape.

Stay tuned for updates as this story continues to develop.