This holiday season, more people are turning to computer programs that use artificial intelligence to help them pick out presents. Big stores like Walmart and Target are working fast to make sure they show up when customers use these tools.
Salesforce, a business research company, put out a report last month saying AI will help sell $263 billion worth of products online around the world during the holidays. That comes out to 21% of everything bought online for the season.
Different studies show wildly different numbers, but research from Visa, Zeta Global, and other groups found that somewhere between 40% and 83% of buyers plan to use AI for shopping this year. Adobe tracked visits to store websites in America and found that traffic coming from AI tools jumped 760% between Nov. 1 and Dec. 1.
People using AI programs like ChatGPT, Gemini from Google, and Perplexity are more likely to buy things when they land on a store’s website. Adobe found that these shoppers are 30% more likely to complete a purchase compared to regular visitors. They also spend about 14% more time looking around and are less likely to click away right after arriving. On top of that, shopping visits starting from AI tools bring in 8% more money for each visit.
Major retailers deploy AI shopping assistants
The boom in AI shopping has made stores change how they do business. Walmart and Amazon built their own AI helpers for shopping. Others like Walmart, Target, and Etsy teamed up with OpenAI so people can look for items or even buy things right inside ChatGPT.
One expert said her company has seen a “major surge in demand” from stores and brands watching their visitor numbers drop from social media ads and regular search engines. Many brands see their paid ads on Meta and other places not working as well, with people moving to AI tools instead.
Walmart made a deal in October with OpenAI so shoppers can find and buy items without leaving ChatGPT. The company hasn’t said when this will start working yet. Etsy and many stores using Shopify, including Glossier, also signed deals with OpenAI for a feature that lets American customers buy one item at a time. This started with Etsy in late September.
Target announced a deal last month letting customers shop through ChatGPT. People testing this feature can buy several items at once, including food, and pick whether they want delivery or to grab it at the store.
Amazon takes defensive position against AI competitors
Amazon took a different path. The online shopping giant blocked outside AI chatbots from OpenAI, Google, and Meta from looking at its website to stop them from pulling product listings into their answers. As reported by Cryptopolitan previously, Amazon also sent a legal letter to Perplexity AI, trying to stop users of its AI browser, Comet, from buying Amazon products. The startup called Amazon’s legal move “bullying.”
Amazon, Walmart, and Target all built their own AI chat helpers, hoping to bring in curious shoppers. At Walmart’s business call in November, CEO Doug McMillon said AI will help grow the company’s online business. He said it will “help people save time and have more fun shopping.”
Target said thousands of customers have used its Gift Finder, with people mostly searching for sports, beauty, wellness, cooking and clothing gifts.
Walmart made another big move this week, leaving the New York Stock Exchange for Nasdaq. This switch marks the biggest loss of a company listing in the Big Board’s history. The Arkansas-based company wants to highlight its work with technology by joining the exchange known for tech companies. Walmart’s market value has grown to more than $920 billion.
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