Retailers Adapt as AI Shopping Agents Transform Consumer Purchasing

The Trend: Retailers and tech giants are increasingly experimenting with AI agents capable of acting on behalf of consumers. These agents automate tasks like product discovery, price comparisons, replenishment, and even purchases.

Key Developments:

• eBay has introduced a shopping assistant that provides real-time, personalized product recommendations based on user input or browsing behavior.
• Amazon is testing Buy for Me, an AI agent that purchases out-of-stock items from third-party sites, handling payment and shipping seamlessly.
• Perplexity, in partnership with PayPal, will soon allow US consumers to make purchases, book travel, and more directly within its interface. Shoppers can ask Perplexity to find products and complete transactions using PayPal or Venmo without manual inputs. Learn more about Perplexity's interface.
• Walmart is developing AI agents for its app and site that can reorder groceries or build shopping baskets based on simple prompts, such as "plan a unicorn-themed party for my daughter," according to US CTO Hari Vasudev.

Strategic Shifts:

Retailers like Walmart are preparing for a future where third-party AI agents interact directly with their platforms. This shift could force retailers to redesign ecommerce systems to accommodate AI-driven interactions.

• A YouGov survey found that 64% of US adults wouldn’t trust AI assistants with shopping, travel, or reservations.
• Despite skepticism, 43% of retailers are already testing AI agents, and 75% expect them to be critical to competitiveness by 2026, per Salesforce’s Connected Shoppers report.

Implications for Ecommerce:

Agentic AI introduces several challenges for retailers:

• Price Pressure: Autonomous agents can instantly find the lowest prices or capitalize on limited-time offers, squeezing margins.
• Discovery Disruption: As agents take over product research, traditional search formats and organic visibility may become less relevant.
• Ad Performance Risk: With fewer human shoppers browsing, retail media and search ad traffic could decline, increasing competition for premium placements.