With holiday shopping season approaching, OpenAI and Perplexity have introduced new AI shopping tools that integrate with their existing chatbots to help users research and discover products.
OpenAI’s chatbot can now assist users with queries such as, “Find a new gaming laptop under $1,000 with a screen over 15 inches,” or even analyze photos of high-end garments to recommend similar items at lower prices. Perplexity emphasizes how its chatbot’s memory can tailor suggestions based on what it knows about users, including location, work, or personal preferences.
Industry analysts see AI-assisted shopping as a major growth area. Adobe predicts a 520% increase in AI-driven online shopping this holiday season, which could benefit startups like Phia, Cherry, and Onton (formerly Deft). However, these startups face competition from tech giants like OpenAI and Perplexity.
Zach Hudson, CEO of Onton, believes specialized AI shopping platforms still hold an edge over general-purpose models. “Any model or knowledge graph is only as good as its data sources,” he told TechCrunch. Onton’s AI is trained on a curated dataset of interior design products, enabling better recommendations than tools relying on generic search indexes.
Similarly, Julie Bornstein, CEO of Daydream, highlights the importance of domain-specific understanding, particularly in fashion. “Fashion is uniquely nuanced and emotional — finding a dress you love is not the same as finding a television,” she said. “Domain-specific data and merchandising logic are essential to deliver accurate recommendations.”
AI shopping startups often develop their own specialized datasets, giving them an advantage in areas like furniture and fashion. However, Hudson warns that startups relying solely on off-the-shelf AI tools and conversational interfaces may struggle to compete with larger companies that already have vast user bases.
The advantage for OpenAI and Perplexity is their existing customer base and major retail partnerships. OpenAI has integrated with Shopify, while Perplexity has partnered with PayPal, allowing users to complete purchases within the chatbot interface. In contrast, startups like Daydream and Phia typically redirect users to retailer websites, sometimes earning affiliate revenue.
While AI shopping tools are growing in popularity, companies are still exploring paths to profitability. With massive compute costs, integrating e-commerce revenue models such as advertising or affiliate partnerships may be crucial to their success, much like Google and Amazon.