AI Shopping: How OpenAI and Perplexity Are Transforming the Future of Online Retail
AI Shopping is rapidly becoming one of the most influential trends in e-commerce. As the holiday season approaches, OpenAI and Perplexity have introduced powerful AI shopping features inside their chatbots, transforming the way consumers research, compare, and purchase products online.
Adobe predicts that AI-assisted shopping will grow more than 520% this year, signaling a massive shift in how consumers interact with online retail. But as AI Shopping becomes mainstream, what does this mean for smaller AI startups and the overall retail industry?
Here’s a deep dive into the future of AI Shopping.
How AI Shopping Is Changing Product Discovery
OpenAI and Perplexity are taking AI Shopping to the next level, offering tools that replace traditional search with personalized, conversational shopping assistance.
OpenAI’s AI Shopping Features:
OpenAI’s ChatGPT now helps shoppers make precise product decisions. For example:
- Find a gaming laptop under $1000 with a 15-inch screen.
- Show me cheaper alternatives to this designer jacket.
- Compare the best smartphones for photography.
This makes AI Shopping feel like interacting with a personal shopping expert rather than browsing a generic search engine.
Perplexity’s Memory-Based Shopping:
Perplexity uses its persistent memory feature to deliver highly tailored recommendations based on:
- Your location
- Profession
- Shopping patterns
- Past preferences
Over time, this allows AI Shopping to deliver ultra-personalized results, making product discovery faster and more relevant.
Why AI Shopping Is Growing Faster Than Ever
Consumers are turning to AI Shopping because it solves problems traditional search engines can’t fix:
- Too many ads and sponsored results
- Poor-quality product listings
- Time-consuming research
- Overwhelming choices
- Lack of personalization
AI eliminates these issues by offering clean, accurate, and personalized product recommendations instantly.
Are AI Shopping Startups at Risk?
With the rise of AI Shopping, niche startups like Phia, Cherry, and Onton (formerly Deft) fear being overshadowed by giants like OpenAI and Perplexity.
However, many industry leaders believe specialized AI shopping tools still have a powerful advantage.
Zach Hudson, CEO of Onton, explains:
“Any model or knowledge graph is only as good as its data sources.”
OpenAI and Perplexity pull product data from traditional search engines, which limits their depth. Meanwhile, niche startups build proprietary datasets tailored for specific industries.
This specialization gives them better accuracy and domain expertise than general-purpose AI Shopping tools.
Why Industry-Specific Data Beats General AI Shopping
Fashion Example:
Julie Bornstein, CEO of Daydream, argues that fashion requires emotional intelligence and nuanced understanding:
- Fabric type
- Silhouette
- Styling
- Occasion
- Personal taste
She highlights:
“Finding a dress you love is not the same as finding a television.”
Interior Design Example:
Onton has cataloged hundreds of thousands of décor products, storing details like:
- Materials
- Dimensions
- Craftsmanship
- Room compatibility
- Design eras
These details are too complex for generic AI Shopping systems to interpret accurately.
The Competitive Edge of OpenAI and Perplexity
Despite the strengths of niche platforms, OpenAI and Perplexity have two major advantages:
- Massive User Bases:
Millions use these chatbots daily, giving their AI Shopping features instant market reach. - Retail Integrations:
OpenAI integrates with Shopify for checkout.
Perplexity integrates with PayPal for payments.
This lets users complete the entire shopping journey—discovery to checkout—inside the chatbot.
Will AI Shopping Become Advertisement Driven?
Running large AI models is expensive. Experts predict that AI Shopping may eventually adopt:
- Sponsored product placements
- Paid recommendations
- AI-based retail ads
If this happens, AI Shopping could become similar to Google Shopping or Amazon Sponsored Listings.
However, this may frustrate users seeking unbiased product recommendations.
The Future of AI Shopping
Experts believe that AI Shopping will evolve into a hybrid model:
General AI Shopping (OpenAI, Perplexity):
- Great for quick searches
- Easy product comparisons
- Convenient for everyday shopping
Vertical AI Shopping (Daydream, Onton, etc.):
- Best for fashion, décor, and niche industries
- Offers deep domain knowledge
- More reliable for aesthetic or emotional purchases
Both will coexist, with each serving a different type of consumer need.
