AI chatbots like Buddy at Bunnings years from becoming norm
Some of Australia's largest retailers are investing in autonomous AI agents shopping for customers. But experts say the technology is expensive and years from being mainstream.
Large Australian retailers, including Wesfarmers, Woolworths, and Coles, are investing in AI chatbots to assist customers with shopping. These AI agents, such as Buddy at Bunnings and Olive at Woolworths, are already in use but are expected to be years away from becoming mainstream. During their financial results presentations, major retailers highlighted agentic commerce as a key investment area.
Olive, Woolworths' digital shopping assistant, has evolved into a personal shopping companion, while Coles is exploring conversational shopping as a potential investment opportunity.
Despite the growth in online sales, high transport and logistics costs pose a challenge to the profitability of online shopping. According to a professor at Queensland University of Technology, as many as one in three products could be purchased online in the near future. However, the cost per item picked by automated delivery systems, such as those used by Coles, remains high.
Experts warn that the additional costs associated with online orders may be passed on to consumers in the form of higher prices. Regulation is also needed to protect shoppers' privacy and curb "surveillance capitalism." While grocery shopping may remain one of the last categories to adopt AI, private label products represent a growing share of consumer sales across all supermarkets in Australia. The growth in home-branded products could potentially limit customer choice and impact costs in the long term.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
