Big tech companies are stepping up their game in online shopping, introducing digital helpers that understand what shoppers like, allow virtual fitting of clothes, search for bargains, and even place orders for them.

The trend of personalized virtual shopping assistants is fueled by generative artificial intelligence (AI), which specializes in various tasks and can operate independently.

“This is the next step in the evolution of shopping,” says Angelo Zino, an analyst from CFRA Research.

Recently, Google launched new shopping features as part of an “AI Mode”.

This tool allows users to upload their photos and mix them with a picture of clothing items like skirts or shirts found online, showing how those items would look on them.

The AI can adjust the clothing to fit properly by taking into account how different materials drape, according to Vidhya Srinivasan, Google’s advertising and commerce lead.

Consumers can set their desired price and let the AI scour the internet for the best deals, notifying them when it finds one and asking if it should make a purchase using Google’s payment system.

“They’re definitely taking a shot at Amazon,” noted analyst Avi Greengart.

This tool also serves as a way for Google to monetize AI by driving online traffic and increasing ad exposure, Greengart added.

Google has yet to clarify whether it shares in the revenue from these shopping transactions.

Buying Bots?

Earlier this year, OpenAI introduced a shopping feature in ChatGPT, allowing the AI to make product recommendations, provide consumer reviews, and link to retailer websites.

In late 2022, Perplexity AI implemented a system enabling users to make online purchases directly within its app.

Amazon also rolled out a “Buy for Me” option in April through its digital assistant, Rufus, allowing purchases at retailer websites beyond Amazon’s own.

Furthermore, Walmart’s tech head, Hari Vasudev, recently discussed integrating an AI assistant into the company’s online shopping platform while collaborating with partners to ensure their digital assistants prioritize Walmart products.

In April, both Visa and Mastercard announced they had upgraded their systems to facilitate payments by digital agents.

“As AI assistants begin to handle more product searches, retailers need to adapt to this new dynamic involving AI shoppers,” stated Elise Watson of Clarkston Consulting.

According to Watson, retailers may find it difficult to understand what attracts AI assistants to certain products.

Understanding Consumers

Zino doesn’t foresee AI shoppers causing a major disruption in e-commerce, but he believes it will yield benefits for companies like Google and Meta.

These tech giants have vast amounts of user data and are leaders in the AI advancements.

“They likely have more consumer insights than anyone else,” Zino remarked about Google and Meta.

This access to user data raises important questions about online privacy and who has the right to control personal information.

Google intends to enhance consumer profiles based on search behaviors and assures that users will need to consent to access further data, such as email or app usage.

Trusting AI with purchasing decisions may unsettle some consumers. While the technology may be ready, the legal and ethical frameworks are still catching up.

“We’re entering the age of AI agents,” said Chris Jones, managing director at PSE Consulting.

“The next evolution of e-commerce hinges on our willingness to entrust machines with our buying choices.”