Generative artificial intelligence (AI), particularly OpenAI’s ChatGPT, has become a major trend in retail.
Brands and retailers are integrating it due to consumer demand for interactive experiences. In recent forays, the use of plug-ins has emerged, necessitating a monthly subscription fee of $20.
Brands and retailers are already at the mercy of the consumer to spend. Will they spend to find out if they even want to shop with said brand or retailer?
These considerations grow increasingly important as PYMNTS reported this month that the decrease in consumer spending could exacerbate the slowdown in container shipping, given the ongoing global reduction in demand for maritime container transportation.
According to Maersk CEO Vincent Clerc, customers have been consistently diminishing their inventory, and there are no indications that this destocking trend will end soon.
The company, which is one of the world’s largest container shipping enterprises, initially projected a container volume decrease of no more than 2.5%. However, the current outlook reflects a potential decline of up to 4%.
Consequently, year-on-year revenue witnessed a sharp decline of 40%, plummeting from $21.7 billion in the second quarter of the previous year to $13 billion, signifying the global economy’s fragility and a pause in imports for numerous businesses.
Despite indications of consumer hesitancy, brands and retailers are still proceeding with their investments in ChatGPT plug-ins.
Among those brands and retailers is James Allen, an online jewelry retailer, which has implemented a plug-in to help shoppers navigate its over 200,000 diamonds showcased on its platform.
The retailer introduced the plug-in in July, Modern Retail reported Tuesday (Aug. 8). It’s available on the ChatGPT website and considers multiple factors, encompassing the user’s design aesthetics and budget. The tool offers three personalized suggestions derived from these inputs and generates links and visuals for users who possess ChatGPT Plus paid subscriptions.
Companies managing a broad spectrum of product offerings can find value in the advanced search capabilities of ChatGPT, which serve as an asset for accentuating relevant items, according to the report. Juggling the intricacies of shopping for an engagement ring can be challenging, given the task of harmonizing budget limitations with an abundance of options encompassing setting designs, diamond characteristics and gemstone specifications.
At present, the plug-in can solely be found by actively searching within ChatGPT’s plug-in assortment, so users must install it.
“The future of engagement ring shopping lies in the application of AI technology,” James Allen said in a July 24 blog post. “It personalizes the shopping experience, considers your budget, and stays updated on trends, revolutionizing how we shop.”
Mercari added a ChatGPT-powered shopping assistant to its marketplace platform for secondhand items in April called Merchant AI. The tool is meant to provide customers with product recommendations. It is embedded in Mercari’s existing experience and available to all customers.
Buy now, pay later (BNPL) solutions provider Klarna has also explored the potential of using ChatGPT through a plug-in. In March, Klarna integrated the plug-in, empowering users to seek shopping advice from the platform and obtain product recommendations with links for buying those items.
“I’m super excited about our plug-in with ChatGPT because it passes my ‘North Star’ criteria that I call my ‘mom test,’ i.e., would my mom understand and benefit from this,” Klarna Co-founder and CEO Sebastian Siemiatkowski said at the time of the announcement. “And it does because it’s easy to use and genuinely solves a ton of problems — it drives tremendous value for everyone.”
The process involves consumers installing the plug-in, directing queries to ChatGPT for shopping suggestions, receiving product recommendations, and, when needed, prompting the system for more recommendations.
Subsequently, consumers can click on a provided link that redirects them to a product page within Klarna’s search and comparison tool
Initially, the plug-in will cater to ChatGPT Plus subscribers in the United States and Canada, and then Klarna will progressively expand its availability to a wider audience and additional regions.
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