New AI Shopping Bots Surge Ahead of Holidays, Recommend Gifts Now

URGENT UPDATE: New artificial intelligence shopping bots are transforming online gift shopping just in time for the holiday season. As consumers brace for an anticipated $253 billion in online spending, major tech companies are rolling out innovative tools to enhance the shopping experience.

Just announced: Amazon’s AI shopping assistant, Rufus, has introduced features aimed at providing faster and more personalized shopping assistance. Meanwhile, Google has unveiled its agentic checkout feature, designed to streamline purchasing without exceeding budgets. OpenAI also launched a free ChatGPT tool that generates tailored gift-buying guides.

The surge in AI shopping tools comes as more than 1 in 3 US consumers report using AI for online shopping, primarily for product research, according to a recent survey by Adobe Inc. This shift signals a potential transformation in consumer behavior, where agentic commerce—automated agents assisting or completing purchases—could become a $1 trillion market in the US by 2030, as per McKinsey & Co.

As retailers scramble to adapt, Bloomberg tested several AI bots, including Amazon’s Rufus, OpenAI’s ChatGPT, and Walmart’s Sparky, to find the perfect gift for mom this Christmas. Surprisingly, the top recommendation across the board was a cozy bathrobe. Rufus suggested a set of classic films for a movie-loving mom, while ChatGPT advised a robe from Victoria’s Secret.

Despite the excitement, analysts caution that AI shopping tools are still in a “work in progress” phase. Emily Pfeiffer of Forrester Research Inc. noted, “I don’t think this is going to have a huge impact on the way we shop this holiday season.” Many bots still struggle with personalized recommendations and accurate pricing. Amazon CEO Andy Jassy highlighted that bots often fail to tailor shopping experiences effectively.

Navigating millions of products can be overwhelming for consumers. AI tools promise a more intuitive experience, allowing users to simply ask for specific items, like “Find me well-reviewed hiking boots under $100.” Early data suggests users interacting with AI are better prepared to purchase compared to traditional search methods, according to Similarweb Ltd.

However, significant hurdles remain. Amazon currently restricts autonomous shopping on its platform, and recent lawsuits against startups like Perplexity aim to protect its lucrative advertising business, expected to generate nearly $70 billion this year. Meanwhile, Walmart is taking a different approach, allowing customers to buy directly through ChatGPT, albeit limited to single-item purchases initially.

As AI continues to evolve, companies are working on better protocols for agent communication to enhance the shopping experience. For instance, Anthropic and Google are developing systems that translate human queries into actionable commands for shopping bots. Microsoft has also introduced tools to help retailers make their websites more compatible with AI agents.

The race to refine these technologies is critical for AI startups. Without partnerships with major retailers and payment processors, their capabilities may remain limited. Perplexity has recently integrated PayPal checkout options, aiming to allow users to complete purchases directly within the app.

As the holiday shopping spree approaches, consumers are reminded that while these tools are designed to simplify the process, they may still require users to verify details on retailer websites for accuracy. OpenAI cautions users that its new shopping tool “might make mistakes about product details.”

With the holiday season on the horizon, the impact of these AI shopping assistants remains to be seen. While they offer exciting possibilities for a transformed shopping experience, consumers may still need to navigate the complexities of online purchasing as technology continues to develop.

Stay tuned for more updates on how these AI innovations may shape your shopping experience this holiday season.