OpenAI ramps up pressure on search, e-commerce competition with online shopping rollout

OpenAI has announced that it will launch a new version of its flagship product, ChatGPT. The new product version comes with an inbuilt online store where users can buy products specially curated according to their preferences. 

OpenAI made a flashy entrance into the e-commerce industry with ChatGPT’s newly added online shopping feature. The new feature positions OpenAI against other established players in the industry, such as Google.

OpenAI introduces online shopping

ChatGPT will now reportedly offer users a seamless and personalized shopping experience. Through the use of its conversational AI, ChatGPT, OpenAI aims to provide its users with tailored product recommendations based on their preferences and queries.

For instance, if a user has previously asked ChatGPT about green shoes or red socks, the AI would then suggest shoes or socks that match the users’ preference and need. These recommendations are organic, and ChatGPT’s search product lead, Adam Fry, made sure to clarify that the suggestions provided by the AI are not paid advertisements during a sit-down with WIRED. This is a major difference between shopping through ChatGPT and another company like Google.

The new user shopping experience on ChatGPT shares many similarities to Google’s. For both applications, ChatGPT and Google shopping, multiple retailers, like Amazon and Walmart, are listed on the right side of the screen, and the shopping feature comes with buttons for completing the purchase.

A large variety of items can be bought from ChatGPT including electronics, home goods, beauty supplies, and fashion items. Users can explore product details, compare prices, read reviews, and access direct purchase links, all within ChatGPT. The shopping feature is accessible to all ChatGPT users, including Plus, Pro, Free, and even those not logged in.

The monetization question persists

In traditional affiliate marketing, publishers earn a commission when users purchase products through affiliate links included in their reviews, but ChatGPT’s shopping features appears for now to be more centered around user experience rather than revenue generation.

Fry stated during his interview with WIRED that the company is experimenting with different monetization models but has no final plans yet.

“We are going to be experimenting with a whole bunch of different ways that this can work,” he said.

The competition has already begun integrating AI into their services. Google’s shopping tab already includes a “Researched with AI” section that summarizes product reviews and highlights recommended picks, while AI search startup Perplexity launched its “Buy with Pro” feature late last year. The feature offers users access to shopping facilities directly inside its app.

OpenAI itself has also been experimenting with AI agents that can browse the web and make purchases on behalf of users. Its Operator agent, introduced earlier this year, can click around web pages to assist with tasks like grocery shopping or vacation bookings.

First impressions of the AI Operator agent were less than positive as users stated that the experience was clumsy and the agent was difficult to operate.

As of now, users will still have to leave ChatGPT to finalize payments on the websites of their chosen retailers, but OpenAI is currently working on forging collaborative relationships with companies such as Shopify to provide users with the option of completing their purchases without leaving the ChatGPT interface.