ChatGPT and Gemini are fighting to be the AI bot that sells you stuff
Why it matters: AI is transforming how we shop, pushing chatbots to become direct sales channels and redefining retail discovery.
- Google Gemini is partnering with Gap Inc. (including Old Navy, Banana Republic, and Athleta) to enable direct clothing purchases within the chatbot, utilizing Google's Universal Commerce Protocol (UCP) and Google Pay.
- OpenAI has abandoned its built-in checkout feature in ChatGPT due to low adoption and is now focusing on improving the visual comparison of products, displaying pricing, reviews, and features, while also planning to integrate retailer-specific apps.
- Retailers like Walmart and Target already allow purchases through Gemini, indicating Google's strategy of direct integration with major brands.
- CNBC and The Information reported on OpenAI's shift away from its own checkout feature, with a Walmart executive confirming "disappointing" sales from ChatGPT's previous built-in checkout.
- ChatGPT's latest update aims to improve "speed, relevance, and product coverage" for all users (free, Go, Plus, and Pro) by providing more up-to-date product information and side-by-side comparisons.
Google's Gemini and OpenAI's ChatGPT are locked in a fierce battle to dominate AI-powered shopping, with both platforms rolling out new features to facilitate purchases. While Google is forging direct partnerships with retailers like Gap Inc. for in-chatbot transactions, OpenAI is pivoting from its own built-in checkout to focus on enhancing product presentation and integrating retailer apps within ChatGPT, acknowledging past "disappointing" sales.
