OpenAI and Perplexity Launch AI Shopping Features as Competition Intensifies with Startups
As the holiday shopping season approaches, OpenAI and Perplexity have unveiled AI shopping functionalities integrated into their existing chatbots, designed to assist users in exploring potential purchases. This development underscores the growing trend of AI-driven assistance in e-commerce.
OpenAI’s enhancements allow users to interact with ChatGPT for specific shopping needs, such as locating a gaming laptop under $1,000 with a screen larger than 15 inches. Additionally, users can upload images of high-end apparel and receive recommendations for similar items at reduced prices.
Conversely, Perplexity emphasizes its chatbot’s memory capabilities, enabling it to offer personalized shopping suggestions based on user preferences and local contexts. This feature helps refine searches by recalling relevant details about individual users’ lifestyles and needs.
According to Adobe, AI-assisted online shopping is projected to increase by 520% this holiday season, presenting opportunities for AI startups like Phia, Cherry, and Deft. However, industry experts are questioning whether these smaller entities can compete as OpenAI and Perplexity expand their shopping experiences.
Zach Hudson, CEO of the interior design tool Onton, suggests that specialized AI shopping startups could still outperform more generalized platforms. Hudson believes that companies focusing on specific niches can curate higher-quality datasets, like fashion or furniture, offering tailored experiences that are more challenging for broader tools to match.
Onton, for example, has developed a data pipeline to catalog hundreds of thousands of interior design products, ensuring that its AI models benefit from superior data quality. Hudson argues that unless these startups pursue such levels of specialization, they may struggle to maintain relevance in a competitive landscape dominated by larger firms.
OpenAI and Perplexity have the added advantage of existing user bases and significant partnerships with major retail platforms, such as Shopify and PayPal, allowing seamless checkouts directly within their interfaces. Meanwhile, smaller startups like Daydream and Phia rely on redirections to retailer websites, which may limit their operational capabilities.
As these startups grapple with the high costs of AI technology and search for profitable models, their focus may need to shift towards vertical markets. Industry expert Bornstein notes that tailored solutions in areas like fashion, travel, and home goods are likely to resonate more effectively with consumers, ultimately enhancing the shopping experience.
In this rapidly evolving landscape, the balance of power may favor businesses that adapt their offerings to meet specific consumer demands.
