The landscape of online shopping in India is undergoing a radical transformation, driven by artificial intelligence. What began as a novelty just a year ago has now become mainstream, with major retailers and tech giants embedding AI into the very heart of the consumer experience. As the crucial holiday shopping season kicks off with Black Friday and leads into Christmas, a new wave of AI-powered services has been launched, aiming to make finding and buying the perfect gift easier than ever.
From Chatbots to Conversational Searches
The race to deploy AI shopping assistants is in full swing. Amazon led the charge by introducing its Rufus chatbot in 2024, setting a benchmark for the industry. Not to be left behind, other major players have swiftly followed. Walmart now offers the Sparky chatbot on its app, which can summarise product reviews or suggest items based on specific occasions like Christmas. Target has a seasonal gift finder chatbot, while Ralph Lauren, in partnership with Microsoft, provides style advice through its "Ask Ralph" bot.
The core idea is to move beyond traditional keyword searches. Instead, shoppers can now engage in a conversational back-and-forth, typing or using voice commands as if they were talking to a human helper. However, the results can be a mixed bag. For instance, when searching for a generic item like a replacement stainless steel pot for a rice cooker, the AI might not capture the full range of available products, sometimes returning completely unsuitable options. Searches for well-known branded products tend to yield more accurate results.
Cross-Platform AI Tools and Virtual Try-Ons
For those who don't want to be confined to a single retailer's website, tech platforms have introduced AI tools that cast a wider net. OpenAI added a "shopping research" feature to ChatGPT last week, designed to give personalised advice for spec-heavy products like electronics. Google's AI Mode in search and its Gemini chatbot app now offer similar capabilities, pulling from billions of product listings to provide organised responses with prices and reviews. Perplexity also joined the fray with its own shopping assistant.
In a test for a soft cotton flannel shirt, ChatGPT provided the most detailed response, offering options from six brands with pictures and a comparison table. Google's results were more general, while Perplexity's fell somewhere in between.
Another groundbreaking innovation is in the realm of virtual fitting. Google has launched an AI-powered "Try it on" feature for shoppers in the U.S., Canada, Australia, and Japan. This allows users to upload a full-length photo of themselves to see how clothes and shoes might look, moving beyond the limitations of pre-set models. The tool excludes items like swimwear and lingerie for privacy reasons.
The Rise of Agentic AI and Smart Local Searches
The AI assistance doesn't stop at finding products; it now extends to buying them. So-called "agentic AI" tools can handle the purchase legwork. Amazon users can set an "AI agent" to buy a product automatically when its price drops to a desired level. Google has a similar "agentic checkout" feature for price-tracked items, currently available with select retailers like Wayfair and Chewy. Both companies assure that the AI will seek user confirmation before completing any transaction.
Amazon is even enabling purchases from other brands' websites directly through its app via a "Buy For Me" button, handling the encrypted transaction on the external site.
For shoppers who prefer brick-and-mortar stores, Google has an AI service in the U.S. that will call local shops to check product availability for toys, electronics, and health and beauty items. Users simply add "near me" to their search query and can opt to "Let Google Call." The bot works swiftly, though its scope might be limited, as it may prioritise smaller local stores over large retail chains.
As these AI tools become ubiquitous, they are fundamentally reshaping the festive shopping journey, offering unprecedented convenience while also presenting new challenges in accuracy and scope. The 2024 holiday season is set to be the most AI-assisted one yet.
