AI is ushering in a new era of ‘unemotional’ online purchases, argues Lyle Kercher of Space & Time. Here’s how shopping bots are changing the game.
Brands have always looked for ways to tap into consumers’ emotions, explains Kercher
“Ask people what they want, then sell them what they need”, to paraphrase Henry Ford.
At its heart, this is very much still as true today as it was over a century ago. In essence, retailers can help improve their chances of a successful sale by offering a greater breadth of products in a wider range of colours, sizes, features, and price points.
But something that has changed significantly is the advent of online shopping and the power it seemingly gives to the consumer. British online sales as a percentage of total retail sales have grown from 2.8% in November 2006 to 30.3% in November 2024 (having peaked during the height of the pandemic), according to the ONS.
With fewer people visiting physical stores, the ability for the stereotypically suave sales assistant to make their pitch, ask questions, present solutions, objection-handle, and then lead the customer to the point of purchase is diminished. Instead, shopping from the safety of one’s desk or mobile phone, the consumer feels more in control; able to research, browse, compare, and procrastinate at their leisure. And even then, when they do add to cart and take the bold step to complete their purchase, they still often have the safety net of free returns.
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While we all like to feel we are in control of this more measured, considered purchase process, the age-old heart versus head battle is always at play, and so often those purchases are still made based on emotion and want, rather than need. And we all do it.
We have an uncanny ability to overvalue certain features of a dearer, seemingly more desirable product we’ve already picked out and fantasized about over a cheaper, objectively ‘better’ equivalent or even the very justification to ourselves that we need to buy anything at all.
Emotional spending is a well-known phenomenon – whether it’s to reward ourselves for that promotion, a payday treat, or to alleviate boredom. The little dopamine hit we get when we ‘add to basket’ and then complete the purchase is remarkably often more valuable to us than the actual product when it arrives. How many items of clothing do we all have in our wardrobes that have barely seen the light of day?
So what if we, as consumers, could find ways to help us make more objective, better-informed choices when shopping online? To be able to quickly make use of the wealth of information out there, tailored towards our preferences, and without the assumed or real cynicism of the digital platforms’ commercial interests or retailers’ persuasive ad copy.
This is where Open AI’s new ChatGPT shopping bot could come into its own. User queries indicating shopping intent will enable ChatGPT to return product details, reviews, images, and links to allow people to find out more or make a purchase.
“Isn’t that just what Google or Bing already does?” I hear you ask. Well, yes. But crucially, ChatGPT’s results are not sponsored ads nor based on an algorithm. They are independently selected and tailored to relevant information the user may have previously expressed across ChatGPT interactions.
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Potentially, such an AI bot could help the consumer both to take advantage of all that online shopping has to offer while minimising any commercial bias, leading to prompt, better-informed purchasing decisions. But what does this mean for the retailer?
Well, it is, of course, early days in its rollout. ChatGPT has a long way to go before its traffic challenges Amazon or Google (who have their own generative AI shopping assistant features). And at some point, one would expect the lure of the ad dollar to supersede the user experience as OpenAI aims to achieve some punchy revenue targets. As such, there is unlikely to be any concern or notable shift in online retailers’ tactical approach to the likes of Amazon, Google, Meta, or TikTok any time soon.
In the meantime, a strong brand presence, compelling ad copy, good imagery, competitive pricing, favorable reviews, and added value – all ultimately underpinned by a quality product – will continue to put retailers’ products in the hearts and minds of consumers.
Now, where’s that link to that Prada paperclip I’m sure I need?
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