Google, Amazon, and Perplexity Are Trying Everything They Can to Make Money Off AI. Their New Idea: AI Shopping

  • Perplexity’s latest initiative focuses on providing shopping recommendations and results by using AI.

  • However, it won’t be the only player in this field. Both Google and Amazon have launched similar services in 2024.

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Finding products at the best price has become easier thanks to Google, but now, a competitor is emerging that might take over. Perplexity has already started to challenge Google in search queries with its chatbot, which is now also capable of helping users make purchases almost entirely on its own.

A shopping assistant. On Monday, Perplexity announced a new service that offers an AI-powered shopping assistant as part of its premium subscription. Perplexity Pro users in the U.S. can already access this feature.

With this new option, users can receive recommendations that aren’t sponsored and search for products from various retailers. After that, they simply need to select the product they want and complete the purchase with a single click through the Buy with Pro platform.

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Making informed decisions. Perplexity’s AI model provides shopping results and explains them by offering a summary of the pros and cons. If you want to find this out using Google, the process typically takes more time and requires additional effort. However, AI simplifies the task and speeds it up.

Once a product is selected, users only need to click on the Buy with Pro button, reminiscent of the well-known Buy Now with 1-Click feature originally patented by Amazon (a patent that expired in 2017).

“I need this.” The multimodal capabilities of Perplexity’s model include a very interesting feature. It allows users to capture an image of a product with their phone’s camera in order for Perplexity’s AI to locate it in stores and then purchase it online.

This functionality is similar to the one offered on Google Lens. However, with Perplexity’s feature, the integration with AI offers additional context and the ability to “converse” with the chatbot to refine the search. For instance, if you see a blue shirt you like but prefer it in black, you can tell the chatbot to find that specific option.

Disadvantages. To benefit from these features, you’ll need to pay for a monthly subscription to Perplexity Pro. Additionally, you’ll need to trust the platform, given that you’ll need to provide personal data and your credit card details to complete purchases. However, users opting for this service will benefit from free shipping on all purchases made with merchants that support the Buy with Pro option.

Merchants are welcome to join. Perplexity wants to compete not just with Google but also with Amazon. The service has already partnered with several merchants and includes integrations with Shopify, ensuring a vast catalog.

Moreover, the company has launched the Perplexity Merchant program, which allows large merchants to share product specs to be included in the Perplexity database and its Buy with Pro service. This program is free of charge, which distinguishes it from Amazon’s program, where merchants are required to pay a portion of their revenue to the platform.

Google and Amazon are also developing AI shopping functionalities. While Perplexity’s proposal is certainly intriguing, both Google and Amazon have made strides in this area. In October, Google announced its AI shopping search engine, while Amazon has started to roll out Rufus, its AI shopping assistant, in the U.S. and other countries.

The stakes are high. Amazon is a leading player in the online shopping sector, along with Alibaba, which currently doesn’t offer a similar option. As such, Rufus represents a significant investment for Amazon in the future. Although Google isn’t primarily an e-commerce platform, it has a huge affiliate program and dominates the search and advertising market, making it a formidable competitor.

Both companies are determined to maintain their leading positions and drive consumer purchases through these innovative AI shopping systems. What’s more, they also recognize that AI assistants are likely to be a significant trend in the future, and they’re determined not to let competitors take their share of the market. It remains to be seen whether Perplexity will succeed in this competitive landscape.

Image | Perplexity

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