The next big AI fight might happen in your shopping cart

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Major retailers, such as Walmart and Sephora, are integrating AI into their shopping experiences.
Tech companies, including OpenAI and Google, are also racing to win in AI-driven online shopping.
Today's AI assistants can help with product recommendations, checkout, and customer service.

Retail is becoming a big battleground in the artificial intelligence arms race.

In the past year, more major retailers have gotten in on the hype, unveiling AI tools for shoppers to use both in stores and online. Some, including Amazon and Walmart, have built AI-powered shopping assistants, while others, such as Target, have added AI features to their shopping apps or partnered with tech companies on AI tools.

Some of the most popular uses of AI for shopping are for research and comparisons, according to an April study from global consulting firm McKinsey and Company.

Retailers aren't the only companies trying to use AI to change the way people buy things. Tech companies, including OpenAI and Google, have introduced new AI shopping features and partnered with top brands. EMARKETER, a sibling company of Business Insider, projects that AI platforms will drive $144 billion in US e-commerce sales by 2029.

It hasn't all been smooth sailing. OpenAI earlier this year pivoted away from a feature called Instant Checkout that allowed users to make purchases within ChatGPT from retailers like Walmart.

Many consumers are still building trust with the AI, McKinsey also wrote in its report.

Still, early adopters show that the opportunity is big. Amazon said in February that customers who used its old AI assistant Rufus while shopping were 60% more likely to complete a purchase. And Walmart has said that those using its shopping bot, Sparky, spend more per order on average than those who didn't.

Here are the ways that AI agents and chatbots are quietly reshaping online shopping — and why you'll probably start seeing them more often.

OpenAI was an early mover in AI shopping and works with retailers like Walmart and Target

Illustration by Justin Sullivan/Getty Images

OpenAI has emerged as a prominent player in AI-powered shopping through a growing number of retail partnerships. It experimented with Instant Checkout before shifting toward product discovery and visual shopping features inside ChatGPT.

It has struck major deals with retailers, including Walmart, Target, Etsy, and Sephora, which have launched apps with ChatGPT. Some apps allow shoppers to search for, compare, and get recommendations directly from the chatbot.

Retailers such as home improvement retailer Lowe's, have made AI-powered assistants in collaboration with OpenAI, like Lowe's virtual home improvement assistant, Mylow. The retailer said it provides customers with the expertise of a Lowe's associate.

Google is trying to get people to shop within Gemini and striking deals with major retailers

Google, which already plays a major role in online shopping through its search business, has made major moves this year to expand its AI presence. Through Gemini, Google has forged partnerships with large retailers and apparel brands to bring their products to its app and AI mode in Google search. The collaborations are meant to make it easier to find and purchase items.

For example, brands including Target, Gap Inc., and Nike said shoppers would be able to browse and shop their products through Google's Gemini app and AI Mode shopping experiences.

Meta AI is coming for your Instagram feed

Meta is bringing AI-powered shopping to your Instagram and Facebook feeds. In March, the company said it was testing new AI features that let users see product information and a summary of user reviews after clicking ads on Facebook or Instagram.

Shopping was also part of Meta's April rollout of its AI model, Muse Spark, in Meta AI before expanding to Meta's broader family of apps. It includes a feature in Meta AI's shopping mode that can search and map Facebook Marketplace listings near a user alongside options from other sites, and a new way to browse products from brands and creators.

Amazon is making a new bet on Alexa for shopping

The Amazon logo on the façade of Amazon Germany's headquarters in Parkstadt Schwabing in Munich.

Matthias Balk/picture alliance via Getty Images

Amazon pivoted in May away from its AI-powered shopping assistant Rufus. The e-commerce giant said it would roll Rufus' capabilities into Alexa+, the generative AI-version of its voice assistant, to create Alexa for Shopping. The new effort aims to be more personalized and conversational.

Alexa for Shopping can help compare products, provide recommendations, track prices, and manage your cart, for example. It also works across your phone, laptop, and Echo devices.

Rajiv Mehta, Amazon's vice president of conversational shopping, described it as an "expert personal shopper who already knows you."

Walmart's Sparky is gaining traction with shoppers

Walmart introduced its AI shopping assistant, Sparky, in 2025. Shoppers can use the chatbot in the Walmart app or website to find products, read reviews, and receive personalized purchase recommendations.

In May, the retail giant said Sparky's weekly active users were up over 100% from the previous quarter. Walmart said that orders from customers using Sparky were 35% more valuable on average.

Beauty brands are getting in on the AI chatbot wave

In 2025, beauty retailer Sephora launched AI Beauty Chat, a generative AI chatbot, on its website and app.

The company's AI tools aim to provide "insightful recommendations to enhance a personalized shopping experience and smart gift giving," Nadine Graham, senior vice president and general manager of e-commerce at Sephora North America, told Business Insider.

Its rival, Ulta, has also launched an AI shopping assistant to guide customers through its website and app. It allows them to compare and shop for beauty products.

Ulta AI is meant to make "beauty discovery more seamless, personalized and shoppable wherever it happens," said Lauren Brindley, chief merchandising and digital officer at Ulta Beauty.

Editor's note: This story was first published in November 2025 and has been updated to reflect recent developments.

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