Don’t Expect to Rely on AI Agents for Your Holiday Shopping Anytime Soon

Social commerce—shopping through platforms like TikTok and Instagram—has not gained significant traction in the US, partly due to consumers’ and major retailers’ ongoing skepticism towards tech giants. To prevent AI initiatives from facing similar challenges, major payment processors like Visa and software startups such as New Generation, which assists stores in developing or partnering with chatbots, are working to establish technical compromises with retail associates. “We believe that a service provider like us can earn retailers’ trust more quickly, which is quite crucial,” notes New Generation CEO Adam Behrens.

Retailers are eager to participate because chatbots have become essential for consumers when researching and validating purchases. Collaborations between AI and ecommerce companies can ensure that chatbots not only deliver correct product information but also use fewer computing resources when processing online orders. This synergy could enhance profits for both parties—if they can reach an agreement.

In one of the most candid assessments of agentic shopping by a top tech executive, Amazon CEO Andy Jassy recently commented on the limitations of agentic shopping on other platforms. “I would say the customer experience is lacking,” Jassy remarked during last month’s earnings call. “There’s no personalization. No shopping history. Delivery estimates are often inaccurate. Prices frequently miss the mark. We need to improve the customer experience and ensure the right value exchange.”

A simple task, such as adding eggs to an Amazon cart, took the AI agent from the Opera browser 45 seconds in a WIRED test this month; manually adding them via Amazon’s app required just a third of the time.

Opera has been hosting workshops for potential partners to discuss security and design considerations. “If our agent doesn’t integrate with the most popular websites, it will create a suboptimal experience,” explains Per Wetterdal, executive vice president overseeing Opera’s commercial partnerships. “No one gains if [a purchase] ends up in the wrong location or quantity.”

Deal Talks

As is common in the tech sector, money and data are pivotal in negotiations. In the realm of agentic shopping, the financial aspects could be clear-cut. AI firms like Opera aim for a percentage of sales for enabling purchases. “If we contribute something that adds incremental value, it’s reasonable to be compensated,” Wetterdal states. OpenAI demonstrates a viable model by charging what it refers to as “a small fee” from partners like Etsy for Instant Checkout purchases.

However, data sharing could be more intricate. Retailers closely guard pricing and availability data, along with customer information, to maintain their competitive advantage. AI companies seek to protect conversation histories to maintain the intimate atmosphere chatbots can provide. Yet, chatbots require real-time information to meet user requests, and retail brands favor more context to build relationships with shoppers.