Google is enhancing its AI chatbot, Gemini, by collaborating with major retailers like Walmart, Shopify, and Wayfair. This partnership aims to transform Gemini into both a virtual merchant and an assistant. Customers can now make purchases directly within the Gemini chat using an instant checkout feature, as announced by Walmart and Google.
AI’s Role in Retail
The National Retail Federation’s annual convention in New York, attracting 40,000 attendees from retail and tech sectors, highlighted AI’s influence on e-commerce. John Furner, Walmart’s incoming president and CEO, stated, “The transition from traditional web or app search to agent-led commerce represents the next great evolution in retail,” in a joint statement with Google and Alphabet CEO Sundar Pichai.
Google’s new AI shopping feature allows users to receive product recommendations based on queries. For instance, if someone asks about winter ski gear, Gemini provides options from participating retailers. Walmart customers can link their accounts to receive suggestions based on past purchases, integrating these with existing online carts.
Expanding AI Shopping Features
Initially available only in the US, Google’s AI-assisted shopping features will soon expand globally. Currently, payments are limited to cards linked to Google accounts but will include PayPal soon. The aim is to simplify finding products by allowing conversational searches instead of traditional keyword searches.
OpenAI and Walmart announced a similar initiative in October. ChatGPT users can shop nearly everything on Walmart’s site using an instant checkout feature. This competition between OpenAI and Google has intensified recently. Before the holiday season, OpenAI introduced a similar feature within ChatGPT for purchasing from select retailers and Etsy sellers.
AI-Driven Consumer Behaviour
Salesforce estimated that AI influenced $272 billion or 20% of global retail sales during the holiday season. Tech companies are developing “AI agents” that go beyond current generative AI chatbots. However, their ability to purchase products for consumers remains limited.
Mike Edmonds from PayPal noted at Sunday’s convention that widespread adoption of agentic commerce won’t happen overnight. He advised retailers against waiting too long to adapt. Shopify’s founder Tobi Lutke emphasized maintaining a balance between automation and personal shopping experiences.
Walmart plans to expand its drone delivery service with Wing, an Alphabet division, to 150 more stores by 2027. This expansion will increase Walmart’s drone delivery locations to 270 across the US. The goal is to bridge the gap between consumer desire and product acquisition using AI technology.
The integration of AI in retail is reshaping how consumers shop online. By enabling seamless transitions from browsing to buying within a single platform, companies like Google and OpenAI are setting new standards for e-commerce experiences.
With inputs from PTI
