Google announced on Sunday that it is enhancing the shopping capabilities of its Gemini AI chatbot by collaborating with major retailers like Walmart, Shopify, Wayfair, and others. This partnership aims to transform Gemini into not only an assistant but also a virtual marketplace.
One of the standout features is the introduction of an instant checkout, allowing customers to complete purchases from certain retailers using a range of payment providers, all within the Gemini chat interface. This new feature will let users shop without having to leave the chat experience in search of products, according to statements from Walmart and Google.
The announcement was made during the first day of the National Retail Federation’s annual conference in New York, an event expected to draw 40,000 attendees from retail and tech sectors. Artificial intelligence in e-commerce and its influence on consumer behavior are expected to be major discussion points throughout the three-day event.
John Furner, Walmart’s future president and CEO, remarked in a joint statement with Sundar Pichai, CEO of Google and Alphabet, that the shift from traditional web or app-based searches to AI-driven commerce represents the next big leap in retail.
The new AI shopping feature in Gemini works as follows: if a customer asks for recommendations on ski gear for an upcoming winter trip, the chatbot will provide options from participating retailers. For Walmart customers who link their Google and Walmart accounts, the recommendations will be tailored based on previous purchase history. Items selected through Gemini will be automatically added to the user's existing Walmart or Sam’s Club shopping cart.
In a similar move, OpenAI and Walmart announced a partnership in October to offer an instant checkout feature for nearly all items available on Walmart’s website, excluding fresh food.
Companies like OpenAI, Google, and Amazon are racing to develop AI tools that streamline the shopping process by allowing users to browse and purchase items without leaving the chatbot. This growing competition between OpenAI and Google has intensified in recent months.
Before the holiday shopping season, OpenAI introduced an instant checkout feature within ChatGPT, allowing users to make purchases from select retailers and Etsy sellers directly through the app.
Salesforce, a software company based in San Francisco, estimated that AI influenced $272 billion, or 20%, of global retail sales during the holiday season.
Initially, Gemini’s AI shopping features will be available only to U.S. users. Google plans to expand them internationally in the coming months. For now, users can make payments via the credit cards linked to their Google accounts, but Google has announced plans to enable PayPal payments soon.
The goal of integrating chatbots in e-commerce is to simplify product discovery. Rather than entering specific search terms, users can converse with the chatbot and refine their search through a back-and-forth interaction. Tech companies are also rolling out more advanced “AI agents,” designed to go beyond current generative AI chatbots, though their ability to complete purchases on behalf of users remains limited.
Mike Edmonds, PayPal’s vice president of agentic commerce, noted during Sunday’s conference that while AI-driven commerce won’t dominate overnight, retailers should avoid adopting a “wait-and-see” attitude.
Shopify’s founder and CEO, Tobi Lutke, told reporters on Thursday that while many consumers appreciate the feeling of having a personal shopper who understands them and their budget, Shopify is mindful not to over-automate the process. “The shopper remains in control, and we ensure they can find the perfect product for themselves,” he said.
Walmart’s John Furner highlighted on Sunday that the company aims to close the gap between wanting a product and having it in hand with the help of AI. He also announced that Walmart plans to expand its drone delivery service to 150 more locations in partnership with Wing, a division of Alphabet. This expansion will bring Walmart’s drone delivery network to 270 stores by 2027, with coverage stretching from Los Angeles to Miami.
Comments