Key Takeaways
- Retailers including Amazon and Walmart are using AI-powered chatbots to help shoppers find what they want.
- The move comes as Americans are turning to generativeAI for tips on shopping, according to Adobe.
- Consumers are overwhelmed by the number of options they have and may find the tool useful for streamlining the process, retail analysts said.
Can an AI-powered shopping assistant solve your holiday shopping conundrums? Maybe—if you go to them for thoughtful advice but don't take their guidance as gospel.
AI recommendations are coming to your shopping cart. Retailers are giving their chatbots glow-ups as Americans use generative AI tools to create shopping lists, compare products and track prices, analysts said, guiding them through a complex online shopping landscape. E-commerce sites and apps are integrating—or creating their own versions of—tools like ChatGPT and Google's (GOOG) Gemini, said Vivek Pandya, Adobe Insights' lead insights analyst.
To get a sense of how they're coming along, I asked some AI-backed assistants for seasonal suggestions for some of the toughest names on my list, getting responses that were both helpful and, occasionally, eyebrow-raising. One found a game for my young niece that looked fun. But it also said a tool capable of slicing metal would be good for my ailing grandmother in her 90s.
Shop, a virtual storefront from e-commerce software firm Shopify (SHOP), launched an AI-powered chatbot last year. Amazon (AMZN) introduced Rufus in February, saying the virtual assistant was trained on its catalog, customer reviews and external sources. Walmart (WMT) has touted a similar tool, currently available to select customers.
Consumers appear to be taking to virtual shopping assistants. Online vendors saw traffic coming from the established AI players increase year-over-year nearly 2,000% on Cyber Monday, according to Adobe. Consumers said shopping is one of the top tasks they would like to use generative AI for, according to the market research firm NielsenIQ. (Merchants also employ them to aid with tasks like order tracking and returns, among others.)
“That number one [use] being focused on 'Help me find the right product when I’m shopping' wasn’t something we were expecting," said Jason Boyd, senior vice president of consumer insights, commercial at NielsenIQ.
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Rufus recommended Taco vs. Burrito, a card game created by a 7-year-old, for my niece. But it had a harder time with my 93-year-old grandma, who I'd noted has a poor memory. The chatbot suggested she could use, with assistance, a machine capable of slicing vinyl and metal to make "personalized projects." (It also pulled up photo albums, blankets and more conventional presents.)
Shop’s assistant came up with a list of personalized items I could buy or create for my grandmother—from calendars with family photos to memory jars—though in the latter case, it offered instructions for making them by decorating a container and filling it with snapshots and descriptions of favorite moments, rather than options for buying stuff.
I also inquired about my boss, who I've worked with for just six weeks. Both Amazon and Shop's assistants said I could make a good impression with books on professional development and leadership. (They also listed options like desk accessories, gift certificates and gourmet snacks.)
Amazon in a blog post said it welcomes feedback as it fine-tunes its use of a nascent technology. Shop has had success using AI to customize the experience for users, and will continue improving its approach, executives said on a recent earnings call.
Retailers are experimenting with the new tools at a time when generative AI could still change dramatically, said Pandya, becoming easier to use and more effective over time; today, tools generally spit out the best answers when users plug in carefully-written questions.
"We're still in this sort of prompt stage with generative AI," Pandya said.