Introduction to AI Shopping Assistants
With the holiday shopping season on the horizon, the e-commerce landscape is undergoing a radical transformation driven by artificial intelligence. OpenAI and Perplexity have recently announced new features that turn their chatbots into full-fledged AI shopping assistants. These tools promise to help users research potential purchases with unprecedented ease, integrating directly into the conversational interfaces millions already use daily.
AI shopping assistants represent a significant evolution from traditional search, offering personalized suggestions and quick comparisons. However, the entry of these tech giants raises a crucial question: are specialized AI shopping startups destined to disappear, or will their niche approach prevail?
Context: The Boom of AI-Assisted Shopping
The new features introduced are markedly similar. OpenAI suggests that users can ask ChatGPT to find, for example, a "new laptop suitable for gaming under $1000" or upload photos of clothing to find similar items at lower prices. Perplexity, on the other hand, leverages its chatbot's memory to tailor recommendations based on what it already knows about the user, such as their location or profession.
According to Adobe's predictions, AI-assisted online shopping will grow by 520% this holiday season. This figure might seem like a boon for startups like Phia, Cherry, or Deft (now Onton), but competition from big players is fiercer than ever.
The Challenge: Generalists vs. Specialists
Despite the firepower of OpenAI and Perplexity, founders of vertical startups don't seem worried. Zach Hudson, CEO of Onton, believes that AI shopping assistants with a specialized niche will always offer a superior experience compared to general-purpose tools.
"Any model or knowledge graph is only as good as its data sources. Right now, ChatGPT and LLM-based tools like Perplexity piggyback off existing search indexes like Bing or Google. That makes them really only as good as the first few results that come back from those indexes."
Zach Hudson, CEO / Onton
Julie Bornstein, CEO of Daydream, shares this view, noting how search has always been the "forgotten child" of the fashion industry.
"Fashion … is uniquely nuanced and emotional — finding a dress you love is not the same as finding a television. That level of understanding for fashion shopping comes from domain-specific data and merchandising logic that grasps silhouettes, fabrics, occasions, and how people build outfits over time."
Julie Bornstein, CEO / Daydream
Solution: Proprietary Data and Vertical Models
The competitive advantage of startups lies in creating proprietary datasets. While general models catalog the sum of human knowledge, startups curate specific catalogs for fashion or furniture, ensuring superior data quality. Onton, for instance, developed a data pipeline to catalog hundreds of thousands of design products more cleanly.
However, OpenAI and Perplexity have an undeniable advantage: user base and partnerships. Thanks to deals with Shopify and PayPal, they allow users to complete purchases directly within the interface, a flow that startups, which often redirect to retailer sites, struggle to replicate.
Conclusion
As giants seek a path to profitability by looking at e-commerce like Google and Amazon, the risk is exacerbating current online search issues. Vertical models, tuned to real consumer decision-making, might maintain their qualitative lead, offering an indispensable alternative for complex and emotional purchases.
FAQ about AI Shopping Assistants
Here are some frequently asked questions to better understand how artificial intelligence is changing the way we shop.
- What are AI shopping assistants?
They are AI-based tools that help users search, compare, and buy products through conversational interfaces, offering personalized recommendations. - What is the difference between ChatGPT and Perplexity for shopping?
ChatGPT focuses heavily on visual and descriptive understanding, while Perplexity leverages past interaction memory to better contextualize suggestions. - Are AI shopping assistants safe for payments?
Yes, platforms like OpenAI and Perplexity integrate partnerships with trusted processors like PayPal and Shopify to ensure secure transactions. - Why use a specialized startup instead of a generic AI?
Vertical startups use data curated specifically for sectors like fashion or furniture, offering a deeper understanding of product nuances compared to general models.