AI shopping in action
Google announced they’re implementing ‘agentic checkout’ as part of their AI Mode. This will track the price of products, until they drop to fit within the buyers’ specified budget. Shoppers will then be prompted with a notification and a ‘buy for me’ confirmation button.
This comes after Google’s introduction of a virtual try-on tool where customers can see clothing they’ll potentially buy digitally added to a photo of them. Remember that scene in Clueless where Cher swipes through a tablet to find just the right outfit combination from her closet? Turns out, that wasn’t so far off the future.
phia
phia is an app created by Sophia Kianni and Phoebe Gates (yes, that Gates). It uses AI to find and compare cheaper and often secondhand versions of pieces that customers are looking at, helping them to secure the best deal. This highlights it’s not just the price that shoppers are thinking about, it’s sustainability too.
Mastercard, Visa and Paypal
Mastercard’s ‘Agent Pay’ and Visa’s ‘Intelligent Commerce’ will use a token system to take a customer’s purchase through the checkout entirely through automation.
PayPal also announced last week that they’re building an agentic commerce toolkit. Meaning every step of the shopping process will be handled by AI and the checkout process as you once knew it will change completely.
What do AI shopping prompts look like?
Customer’s prompts are likely to centre around discounts, like ‘buy this when it’s on sale/down 20%’ etc. But in the early stages of the buyer's journey, when they don’t know what they’re looking for yet, prompts may be broader.
For example:
- I’m looking for a skincare routine that will make my skin glowy. I have dry skin, live in a cold climate and am looking to spend between $20-50 per product. Find brands that are cruelty-free and vegan.
- Find a lightweight suit to wear as a guest to a summer wedding. This is the dress code on the invitation [insert invite], a moodboard of the guest style [insert photos] and the weather forecast.
- I like this style [insert photos]. Where can I find items like this? How can I build this wardrobe? I want brands that are sustainable and locally made.
How your store can adapt to capture digital shoppers
Lifestyle focus over product features
Since AI prompts are more lifestyle based than traditional searches, your opportunity here is to put yourself in the buyer’s shoes and picture where and why they will use your product. Use all the customer insights you have at your disposal to create a profile of your core consumer. What does their lifestyle look like? Work key terms related to events/season into your product description and shift your focus into telling a story. For instance, if you sell a blue maxi dress, it’s no longer just a blue maxi dress. Instead it’s a European summer outfit, a festival favourite or a beach day look.
Strategic discounting
This one has always been in the e-commerce playbook, but it’s perhaps more important than ever. Discounting products strategically before big events will make you stand out in the AI algorithm. Too many businesses focus on the ‘loss’ of discounting, but the gain in sales will outweigh this.
Looking ahead
We predict that as AI develops a greater understanding of user’s preferences, there will be less need for product filters in search bars. The checkout page will undergo a complete transformation and stores will be discovered in new ways. It’s a lot of change to take in.
But great stores will continue to thrive as long as they’re listing products strategically. Because while the method of shopping is undergoing an overhaul, people will always want high quality products that suit their lifestyle and values.
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