AI chatbots are here to transform shopping

Retailers are keen on introducing AI shopping assistants to help sales and enhance the customer experience. Amazon launched chatbot Rufus this year, which currently answers questions and recommends products to buyers.

Walmart is testing chatbots for toys and electronics, while Shopify’s Shop AI engages customers by asking tailored questions about gift recipients.

Startup Perplexity AI recently introduced an unsponsored shopping feature, offering recommendations based on users’ specific queries, like “best leather boots.”

According to Adobe, consumer traffic to retail sites from generative AI-powered chatbots has doubled in 2024. The ongoing holiday season is expected to add to the traffic.

AI chatbots also face notable challenges
Amazon’s Rufus relies on product listings, reviews and community Q&As to provide answers but sometimes delivers inaccurate results. It suggested non-TV products when asked for gaming TVs and failed to show discounted prices in searches. The bot offers more personalized suggestions after extended interactions but struggles with accurate price comparisons and specificity. 

Similarly, Shop AI can ask helpful questions but falls short in recommending precise products or identifying the lowest-priced items.

Future of AI in retail
Experts believe AI shopping assistants need deeper personalization to revolutionize e-commerce. This includes retaining customer preferences, order history and shopping habits.

An Adobe survey found that seven in 10 consumers who use AI shopping assistants believe it enhances their experience.

Companies like IKEA and Victoria’s Secret are experimenting with the tech, signaling its growing importance in shaping the future of retail.

Adobe expects the holiday shopping season will see customers ordering a record $128.1 billion in merchandise through mobiles, which would make more than 53% of total online spending compared to desktops.