Gap becomes first major fashion retailer to offer direct checkout within Google Gemini

ChatGPT and Gemini are fighting to be the AI bot that sells you stuff

The AI-powered shopping rivalry is heating up as Google and OpenAI launch new features to help you buy things while interacting with their chatbots. Now, Google is teaming up with Gap Inc to allow its Gemini AI assistant to purchase clothes on your behalf from any of its stores, which include Gap, Old Navy, Banana Republic, and Athleta, while OpenAI launched an updated shopping interface in ChatGPT. With Google's new partnership, you may see products from one of Gap's brands if you're asking Gemini for shopping suggestions, along with an option to purchase the item without leaving the chatbot. Similar to Walmart and Target, which also let users make purchases through Gemini, Gap will power the experience with Google's Universal Commerce Protocol (UCP) -- a standard that's supposed to make it easier for AI assistants like Gemini to make purchases on participating retailers' websites. As reported by CNBC, a customer making a purchase through Gemini will check out using Google Pay, while Gap takes care of shipping. AI-assisted shopping is becoming a growing trend as retailers look for new ways for people to discover their products beyond the search engine. But questions remain as to whether people actually want to shop this way, as OpenAI recently confirmed that it's walking away from a built-in checkout feature it launched in ChatGPT just months ago. Instead, OpenAI is planning to work with retailers to launch their own apps within ChatGPT, according to reports from The Information and CNBC. A Walmart executive also told Wired that sales with ChatGPT's built-in checkout feature "have been disappointing." As OpenAI turns its focus toward improving how products appear in ChatGPT, it has announced that the chatbot will now allow you to visually compare products side-by-side while viewing pricing, reviews, and features. OpenAI also says it has improved "speed, relevance, and product coverage" in ChatGPT, allowing the bot to serve up more up-to-date information. This update is rolling out to ChatGPT free, Go, Plus, and Pro users this week.

Gap becomes the first major fashion company to offer checkout within Google's Gemini

What Gap's Gemini AI partnership says about the future of retail Gap is partnering with Google's Gemini to allow shoppers to check out directly within the AI platform, making it the first major fashion company to work directly with the tech company to fuel agentic commerce, CNBC has learned exclusively. The partnership comes as more and more shoppers move away from traditional search and toward artificial intelligence platforms for product discovery, forcing retailers to rethink their approach to marketing to ensure they're staying competitive and not missing out on customer demand. "It's not just keyword search anymore, right? It's conversations, and so we need to be relevant to that," Gap's chief technology officer, Sven Gerjets, told CNBC in an interview. "Is it, you know, 'I'm trying to figure out what to do for a wedding, what are the things I should be looking at?' Or, 'I've got a job interview, are there some styles I should wear?' All of those things we need to become relevant to." When shoppers are hunting for a new pair of jeans or the perfect oversized hoodie on Gemini, and the platform thinks some of Gap's products could be a fit, customers will be able to buy products from Gap's house of brands directly within the platform without having to be redirected to the brand's website. The information about the product that is surfaced to shoppers won't be crawled from Gap's website but will be details the retailer provided to Gemini in advance so it can control for accuracy, continue to collect customer data and have better control over the customer experience. If the shopper decides to buy the product, they'll check out via Google Pay, and Gap will handle the shipping and any other logistics. The retailer said it's still testing the capabilities. Gerjets said the company expects to deploy the service to customers "imminently."

Walmart, Gap push AI shopping in ChatGPT and Google Gemini but differ on checkout

Driving the news: OpenAI on Tuesday announced new shopping features in ChatGPT focused on product discovery, letting users browse, compare and refine purchases conversationally. * Gap, meanwhile, said it is making its products available to purchase directly within Gemini and AI-powered search, using Google's new commerce protocol. Zoom out: Other retailers are holding onto more control -- allowing users to browse in AI chats, then complete purchases on their own site. * Walmart is among them, moving to embed its own AI assistant, "Sparky," within ChatGPT and Gemini. * Sephora is also launching a ChatGPT app that integrates loyalty programs and personalized recommendations, with in-app checkout planned for the future. What they're saying: "Shopping can start anywhere now, whether that's Walmart or a question in ChatGPT," Daniel Danker, Walmart EVP of AI acceleration, product and design, said in a statement to Axios. * "Our approach is simple: wherever it begins, customers still get the same personalized Walmart experience, including our assortment, value and speed," Danker said. "With Sparky, we're bringing our trusted experience into more places." Reality check: The shift is still early -- and early results are mixed. * Conversion rates were three times lower for Walmart purchases completed directly inside ChatGPT than those that redirected to its website, Danker told WIRED. * OpenAI has also pulled back from earlier efforts to enable native checkout, instead prioritizing discovery and giving merchants more control. For now, AI is largely shaping how people decide what to buy, not where they complete the purchase -- but retailers don't want to miss the shift if and when that changes. * Shopify said Tuesday millions of merchants can now sell inside AI chats like ChatGPT and Google's Gemini while keeping checkout on their own sites. * Gap's push into in-chat checkout stands out as an early test of whether that behavior will change. What we're watching: Will more retailers follow Gap's lead -- or double down on keeping checkout in their own ecosystems?

Gap will let shoppers buy directly in Google's Gemini

Gap $GPS Inc., the parent of Old Navy, Gap, Banana Republic, and Athleta, said it will allow customers to complete purchases without leaving Google $GOOGL's Gemini app, a move CNBC reported is the first of its kind among major fashion retailers. The company made the announcement at the Shoptalk Spring conference. The announcement follows a broader shift in consumer behavior -- shoppers are relying more heavily on AI tools to find products, which has pressured retailers to reconsider how they reach customers outside of conventional search, according to CNBC. "It's not just keyword search anymore, right? It's conversations," Gap Inc. chief technology officer Sven Gerjets told CNBC. The Gemini deal is one of two AI moves Gap announced at Shoptalk Spring. The second is a sizing tool built on Bold Metrics' Agent Sizing Protocol. The tool works within conversational shopping experiences to surface personalized fit recommendations -- in place of a static size guide -- when a customer is already in the buying moment, the company said. When a shopper finds a Gap product through Gemini or Google's AI Mode in Search, the transaction can be completed without ever leaving the platform. Gap handles shipping and fulfillment; payment goes through Google Pay. Gemini will not crawl Gap's website for listings. Instead, Gap will feed the details directly to the platform -- a setup that lets the retailer control what shoppers see and ensures the listings stay accurate, according to CNBC. Gerjets told CNBC the capability has not yet launched but said rollout to customers is expected "imminently." At launch, the experience will not support loyalty account connections or rewards redemption, Gerjets told CNBC, though he said those features could be added as the platform matures. "We are not pursuing AI for novelty," Gerjets said in a statement. "These partnerships are about solving real customer problems -- helping shoppers feel confident about fit and making it easier to complete a purchase." Gap said both features address separate friction points: Bold Metrics targets size uncertainty, while Gemini checkout removes the need to leave the platform to complete a purchase. Gap is using Google's Universal Commerce Protocol for the integration, which the company said prioritizes merchant oversight of how transactions are handled. CNBC reported that no other major apparel rivals have disclosed a similar arrangement with Gemini. Gerjets told CNBC the company views its current agentic commerce setup as an early-stage effort that will be built out further.

Gap Teams With Google for Agentic Clothing Shopping | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. This collaboration will let shoppers check out directly from Google's artificial intelligence (AI) platform, CNBC reported Tuesday (March 24). It makes Gap the first major fashion brand to work with Google in this manner, the report added. The network notes the partnership is happening as consumers increasingly use AI platforms to find new products, which has left retailers reexamining their marketing strategies. "It's not just keyword search anymore, right? It's conversations, and so we need to be relevant to that," Gap Chief Technology Officer Sven Gerjets told CNBC. "Is it, you know, 'I'm trying to figure out what to do for a wedding, what are the things I should be looking at?' Or, 'I've got a job interview, are there some styles I should wear?' All of those things we need to become relevant to." According to the report, the partnership works like this: When a shopper searches for an article of clothing using Gemini, and the AI thinks some of Gap's products are a match, shoppers will be able to purchase those items within Gemini without being redirected to Gap's website. Google Pay handles the checkout, while Gap takes care of shipping and other logistics. Product information provided to shoppers won't be crawled from Gap's site, CNBC added, but will be details that Gap provided to Gemini beforehand. This allows Gap to control for accuracy, keep collecting customer data and exercise greater control over the customer experience. PYMNTS Intelligence research from earlier this year found that 41% of consumers have used dedicated AI platforms for product discovery. "More striking is that a third say they have fully replaced their prior methods. They are not layering AI on top of old habits," PYMNTS CEO Karen Webster wrote in a column last week. "They shut the door on the old way and left." That column, titled "Why AI Shopping Is Still Just a Smarter Search Bar," looks at the limitations of agentic commerce. "What the past year revealed is that the gap between consumer readiness and commercial infrastructure is wider than most of the predictions of 2024 acknowledged," Webster wrote. "The technology moved faster than anyone anticipated. The commerce plumbing did not."