AI Agents Knock. Retailers Decide How Wide to Open the Door.

The retail sector is grappling with the implications of AI shopping agents, which are altering the customer journey. Amazon maintains strict control, with only its own agents operating on its platform. In contrast, QVC permits agents to complete transactions, while Walmart allows Google's Gemini to surface its products before directing the shopper to its own Sparky assistant for the purchase.

Retailers are divided on how much control to relinquish to AI platforms. A PYMNTS survey reveals that 23% of U.S. consumers, or approximately 61 million individuals, now initiate their shopping research using AI. This shift presents retailers with a dilemma: they gain access to AI-driven traffic and valuable purchasing data but risk ceding control over the customer journey.

Walmart, for instance, leverages Gemini to surface relevant products, offering shoppers the convenience of adding items to their existing carts while retaining Walmart+ benefits. Similarly, QVC and HSN enable agents to complete purchases, whereas Kohl's restricts this functionality. Tapestry strikes a balance, allowing purchases of certain brands through Google's AI Mode, albeit with an explicit approval step.

Amazon, on the other hand, has blocked numerous outside agents as it develops its proprietary AI capabilities. Retailers recognize the potential of AI-driven traffic but remain committed to their own sales channels. Shopify has embraced this trend by allowing its merchant catalogs to be integrated with various AI platforms, resulting in a tripling of merchant catalog traffic and orders year-over-year.

Despite the shift in discovery, a significant majority of consumers continue to purchase through Amazon, citing reliability and habit as key factors. As retailers navigate this evolving landscape, they must strike a delicate balance between harnessing the power of AI and preserving control over the customer experience.