Target Partners with OpenAI to Enable Direct Shopping Through ChatGPT

Target Is Coming to ChatGPT, Will Let You Buy Items Inside the AI App

OpenAI really wants to keep you inside the ChatGPT interface, and one the ways it's doing that is letting you shop inside the app. Target is the latest retailer to sign up, joining Walmart, Etsy, and Shopify ahead of next week's crucial Black Friday sales. It comes after OpenAI introduced third-party apps for ChatGPT, meaning you can link services like Booking.com, Spotify, and Zillow to ChatGPT and ask questions about them. With Instant Checkout, retailers can also allow ChatGPT to facilitate purchases. Target suggests customers can ask ChatGPT to help "plan a holiday family movie night," which it says will generate a list of recommended products like blankets, candles, slippers, and snacks. Put the items you wish to buy in your cart and buy within ChatGPT using your Target account and its attached payment methods. It currently supports home delivery or store pickup. "This is just the beginning," Target says. "The Target experience in ChatGPT will continue to evolve in the weeks ahead as Target enhances it with new features, such as linking Target Circle accounts and offering same-day delivery, that make it even more helpful based on how consumers use it." Target's ChatGPT integration will launch in beta next week. That's Black Friday week, and it's clearly important for both brands to have it up and running ahead of the holiday rush. Target also has a ChatGPT-like interface on its website and app called the Target Gift Finder. One retailer you probably won't see inside ChatGPT is Amazon. The e-commerce giant recently sued OpenAI rival Perplexity for allegedly allowing its AI agent to access Amazon customer accounts without the consent of the company or its customers.

Target jumps into ChatGPT just in time for holiday shopping

Users can browse and check out through a conversation with ChatGPT ChatGPT will start helping you shop at Target just as the holiday rush begins, thanks to a new feature that embeds the ability to find and buy products directly within the chatbot. You'll now be able to discuss what you want to buy with ChatGPT, add items to a cart, and make purchases at Target without ever leaving the app. The new feature marks another expansion of OpenAI's efforts to encourage people to use ChatGPT as a retail platform. Instead, while conversing with ChatGPT, you can tag Target and ask for specific items or for help with larger projects like planning a holiday party. The Target app within ChatGPT will respond with some options for the product you want or offer a list for your party. You can scroll through suggestions, add items to a shared basket, and check out using your Target account. You can get it shipped or pick it up at a store, either inside or at the curb. Same-day delivery is even in the works. You can ask for everything you'd normally scroll through Target's app or website, and ChatGPT will respond like a store associate ready to gather your requests. Target is betting this will feel more natural than navigating filters and dropdown menus. What makes this move notable isn't just that it's happening inside ChatGPT, but that it marks a shift in what we expect from online shopping. For most of the last two decades, e-commerce has revolved around clicking on what you want. ChatGPT is approaching buying things online as a conversation, even when you might not even know what you want to buy yet. "A big part of the AI transformation is happening inside enterprises," said OpenAI's Applications CEO Fidji Simo, "and Target is a great example of what that shift looks like when it's done with ambition and speed." The timing isn't accidental. Heading into the holidays, Target is betting it can grow its audience without forcing anyone to download yet another app. Of course, as with any emerging tech feature, execution will matter. A conversational interface may be perfect for themed moments, but less helpful when you're trying to compare eight very similar hairdryers. If the recommendations aren't genuinely helpful or ChatGPT hallucinates stock, people will be annoyed. Target's traditional app and website won't disappear, of course. Many shoppers still want to browse visually. But for quick decisions or when you want to buy things around a theme or broader need rather than a specific item, talking to ChatGPT might be more efficient.

Target's new partnership with OpenAI brings shopping into ChatGPT

Why it matters: The launch marks another step in the rise of "agentic commerce," where AI anticipates what shoppers need -- and checks out on their behalf. * The debut comes during Thanksgiving and Black Friday week -- one of the year's biggest shopping periods -- giving Target a chance to showcase how AI could streamline gift buying and holiday planning. Driving the news: The Target app in ChatGPT, launching in beta next week, lets users build baskets, buy multiple items in one transaction and choose pickup, drive-up or shipping. * They can shop fresh food and receive curated product suggestions and personalized recommendations. * Target's news comes a month after Walmart unveiled its own OpenAI partnership, underscoring how quickly big-box rivals are moving to embed AI into everyday shopping. What they're saying: Fiddelke said on a media call with reporters that the partnership with OpenAI will help Target stay ahead of how customers want to shop. * "We need to be at the forefront of how the consumer is going to shop -- and that means we get to the forefront of technology," he said. Between the lines: Target already uses AI to forecast demand, help employees, streamline supply chains and power product design.

Target partners with OpenAI to use ChatGPT for AI-led shopping

The ChatGPT app is the latest expression of that strategy. Most AI-shopping pilots so far have been single items, shipped to your door, and nothing that really tests a retailer's operational wiring. Target is doing the opposite. This partnership will let users tag Target inside a conversation -- plan a holiday movie night, restock a pantry, pull together a kid's birthday list -- and watch the assistant build a curated basket across categories. The twist is operational rather than flashy, and it's designed to support real-world logistics such as Drive Up pickups, in-store fulfillment, and even fresh groceries, which means Target is exposing the guts of its inventory and routing systems to an AI agent and betting -- or hoping -- that the experience feels seamless.

Target says it's working with ChatGPT for AI-assisted shopping

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Target on Wednesday said it's working with OpenAI to let customers shop its products through ChatGPT, a move that comes as the retailer is struggling to convince inflation-weary consumers to stick with it. Customers will be able to browse Target's selection and make purchases within the ChatGPT app, according to the retailer. The tool will debut next week, providing access to ChatGPT's 800 million weekly active users in time for the holiday shopping season. Target is leaning on price cuts and a $1 billion investment plan to revive its brand, the retailer said separately Wednesday, as same-store sales fell 2.7% in the latest quarter and profit tumbled 19%. With shoppers increasingly relying on AI to find products online, other big retailers -- including Walmart, which struck a similar partnership with OpenAI last month -- are turning to the technology to boost sales. Here's how the ChatGPT-powered Target tool will work: Inside the ChatGPT app, consumers can tag Target and ask for ideas, such as if they're planning something like a holiday family movie night. The Target app will then suggest specific products, such as blankets or snacks, and allow users to buy them directly without leaving the ChatGPT interface. Target said that AI will eventually start to understand and predict what customers want to buy. A recent Harris Poll shows that nearly half of Gen Z consumers would trust AI as a personal shopper that helps them pick out what they buy and find deals. Streamlining the purchasing process could help retailers boost sales, according to retail experts.

OpenAI and Target launch ChatGPT-powered shopping app in beta

OpenAI and Target announced a partnership expansion on October 10, 2023, to launch a ChatGPT-powered shopping app in beta next week, enabling users to request product ideas, browse items, assemble multi-item carts, purchase groceries, and complete transactions directly within the platform. This development builds on OpenAI's recent efforts to integrate retail functionalities into ChatGPT. Last month, OpenAI introduced dedicated apps from partners including Canva for design tasks, Coursera for educational content, Figma for collaborative editing, Expedia for travel bookings, Spotify for music streaming, and Zillow for real estate searches. These integrations allow users to access specialized services seamlessly during conversations with the AI. Complementing these additions, OpenAI launched Instant Checkout, a feature that facilitates purchases embedded in dialogues with retailers such as Etsy for handmade goods and Shopify for e-commerce stores. This tool streamlines the buying process by eliminating the need to switch applications, supporting OpenAI's strategy to embed commerce capabilities into its AI ecosystem. The Target app represents a deeper collaboration under OpenAI's existing enterprise agreement with the retailer. Target plans to deploy ChatGPT Enterprise to its 18,000 headquarters staff, applying the tool for supply-chain forecasting to predict inventory needs and optimize distribution, as well as streamlining store processes like inventory management and operational workflows. Beyond the employee rollout, Target intends to embed OpenAI's models into various digital platforms. These include tools for employee support to handle internal queries, customer service enhancements for faster resolutions, AI-driven shopping assistants to guide purchases, and personalized gift finders that recommend items based on user preferences and occasions.

Target Corporation to Launch First-Of-Its-Kind Conversational, Curated Shopping Experience in ChatGPT

Target Corporation announced that consumers will be able to discover and shop Target right inside ChatGPT, part of an effort to reimagine AI-powered shopping as a curated, conversational experience -- and just in time for holiday shopping. Launching next week in beta, Target will offer a complete shopping experience through its app in ChatGPT, with the ability to purchase multiple items in a single transaction, shop fresh food products, and select drive up, pick up or shipping fulfillment options. Shoppers will also soon be able to request personalized recommendations, browse and build baskets from across Target's full assortment, and purchase seamlessly through their Target account. It's designed to deliver what consumers already love about Target: curation, convenience and value. Shopping meets conversation Nearly half of Gen Z consumers would trust AI to help choose what they buy, from clothing and skincare to everyday essentials, according to a recent Harris Poll. The findings highlight how quickly AI is shaping the way people shop and discover new ideas. Through the experience of the new Target app in ChatGPT, users can ask for help getting exactly what they need and discovering more to love. An example of how it will work: In the ChatGPT interface, the guest tags Target and asks for help to "plan for a holiday family movie night." The Target app in ChatGPT responds with suggestions across Target's style-led assortment of cozy-chic winter products, from throw blankets and candles to new snacks and warm slippers. The guest can browse the options, build a basket with multiple items and seamlessly purchase with their choice of fulfillment options, including free same-day Drive Up and Order Pickup at the store, or shipping. This is just the beginning. The Target experience in ChatGPT will continue to evolve in the weeks ahead as Target enhances it with new features, such as linking Target Circle accounts and offering same-day delivery, that make it even more helpful based on how consumers use it. This partnership with OpenAI is part of Target's broader investment in technology designed to elevate the experience for guests, team members and vendor partners. Teams across Target are using ChatGPT Enterprise, which is designed for use with the retailer's proprietary data, to increase speed, simplify workflows and create more space for creativity. More broadly, Target uses AI to enhance operations across the company, from improving supply chain forecasting to simplifying store processes and personalizing the digital experience.