Google announced on Sunday an expansion of the shopping capabilities of its AI chatbot, Gemini, by partnering with major retailers including Walmart, Shopify, and Wayfair. This development aims to transform Gemini into a virtual merchant as well as an assistant, enhancing the shopping experience for users.
A notable feature of this expansion is the introduction of an instant checkout function. This feature enables customers to make purchases directly from participating businesses and a variety of payment providers without having to leave the Gemini chat interface they used to search for products.
This announcement was made on the first day of the National Retail Federation's annual convention in New York City, where discussions surrounding the impact of artificial intelligence on e-commerce and consumer behavior are set to take center stage throughout the three-day event.
John Furner, Walmart's incoming president and CEO, commented on the evolution of retail by stating, "The transition from traditional web or app search to agent-led commerce represents the next great evolution in retail." This sentiment was echoed in a joint statement with Google and Alphabet CEO Sundar Pichai.
The AI shopping feature in Google’s Gemini works by responding to user inquiries tailored to personal preferences. For instance, if a user asks for recommendations on gear for a winter ski trip, Gemini will provide a selection of items available from participating retailers.
For Walmart customers who link their Walmart and Gemini accounts, Gemini will offer product recommendations based on past purchases. When users choose items to purchase through the chatbot, these products may be combined with their existing online shopping carts from Walmart or Sam’s Club, streamlining the checkout process.
In a similar vein, OpenAI and Walmart established a partnership in October, allowing users of ChatGPT to utilize an instant checkout feature for nearly all products available on Walmart's website, with the exception of fresh food items.
The competition among Google, OpenAI, and Amazon is intensifying as they race to develop seamless AI-powered shopping tools. These innovations aim to keep users within a single application environment, allowing for a smooth transition from browsing to purchasing without redirecting them to a retailer's website.
Prior to the previous holiday shopping season, OpenAI introduced an instant checkout feature within ChatGPT, allowing users to purchase products from select retailers, including Etsy sellers, directly through the app without any interruptions.
According to estimates from Salesforce, a San Francisco software company, AI has influenced approximately $272 billion—or 20%—of global retail sales during the holiday shopping season, illustrating the significant impact of AI on consumer behavior.
Currently, Google has indicated that the AI-assisted shopping features within Gemini will be available exclusively to users in the United States, with plans for international expansion in the months ahead. This initiative marks a significant leap in the integration of AI technologies within retail, offering consumers a new and efficient way to shop.
