AI Shopping Wars Heat Up: OpenAI and Perplexity Launch Holiday Shopping Assistants

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OpenAI and Perplexity have both launched AI-powered shopping assistants just in time for the holiday season, featuring conversational interfaces and instant checkout capabilities. While specialized AI shopping startups remain confident about their niche advantages, the tech giants are leveraging their existing user bases and major retail partnerships to capture the growing AI-assisted shopping market.

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Major Players Enter AI Shopping Market

OpenAI and Perplexity have both launched AI-powered shopping assistants this week, positioning themselves to capture a share of the rapidly growing AI-assisted commerce market just in time for the holiday shopping season. The timing appears strategic, with Adobe predicting that AI-assisted online shopping will grow by 520% this holiday season

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Both platforms offer remarkably similar functionality. OpenAI's ChatGPT can help users find specific products like "a new laptop suitable for gaming under $1000 with a screen that's over 15 inches," or analyze photos of high-end garments to suggest similar items at lower price points

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. Perplexity emphasizes its chatbot's memory capabilities, allowing for personalized recommendations based on previous conversations about users' locations, work, and preferences

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Perplexity's Enhanced Shopping Experience

Perplexity's revamped shopping experience is now available free to all US users, featuring improved conversational capabilities and personalized product recommendations

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. The platform introduces "intelligent product cards" that showcase curated options rather than overwhelming users with endless grids of items

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The company's "Instant Buy" feature, powered by a PayPal partnership, allows users to complete purchases without leaving the chat interface

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. Currently, only five brands including Abercrombie & Fitch, Ashley Furniture, and Fabletics are available through instant buy, though more merchants are expected to join

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. As a holiday incentive, Perplexity offers users 50% cashback on purchases made before December 1, with a $50 limit

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Specialized Startups Remain Confident

Despite the entry of tech giants, specialized AI shopping startups believe they maintain competitive advantages through domain expertise and superior data quality. Zach Hudson, CEO of interior design shopping tool Onton, argues that general-purpose tools like ChatGPT and Perplexity are limited by their reliance on existing search indexes from Bing or Google

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"Any model or knowledge graph is only as good as its data sources," Hudson explained, noting that his company developed specialized data pipelines to catalog hundreds of thousands of interior design products more effectively

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. Julie Bornstein, CEO of fashion-focused Daydream, echoes this sentiment, emphasizing that "fashion is uniquely nuanced and emotional" and requires domain-specific understanding of silhouettes, fabrics, and styling

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Competitive Landscape and Market Dynamics

The major platforms enjoy significant advantages through their existing user bases and ability to secure partnerships with major retailers from the outset. While specialized startups like Daydream and Phia redirect customers to retailers' websites for purchases and earn affiliate revenue, OpenAI and Perplexity offer integrated checkout experiences through their Shopify and PayPal partnerships respectively

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These developments reflect broader trends in AI agent capabilities, with companies racing to integrate AI assistants into various aspects of users' digital lives. Amazon has also entered the space with its Rufus AI shopping assistant, and recently threatened legal action against Perplexity for allegedly operating on Amazon's website without authorization

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