Retailers using Amazon DSP can now test product feed ads in ChatGPT, automatically generating creative from catalogues and serving them beneath AI responses. The U.S. pilot extends Amazon's retail media power beyond its own marketplace, with implications for both endemic and nonendemic sellers.
Instacart is giving regional grocers the same AI shopping capabilities as Walmart, Kroger, and Amazon. Cart Assistant is a white-label tool for retailer sites, while Clementine serves Instacart's own marketplace in the U.S. and Canada.
Levi Strauss disclosed a social-engineering breach where corporate data was stolen from three employee computers. With $6.3B in revenue and 3,300+ stores, the company contained the incident without any consumer data compromise or operational downtime. For retailers, the attack highlights that even non-consumer breaches can strain trust and resources.
Kroger rolls out an AI assistant across most banners that helps shoppers plan meals, find recipes, and build carts—with sponsored products from the start. Retail leaders must weigh the convenience of AI against the advertiser-driven experience.
Walmart's retail operations are getting an AI overhaul, with supply chain technology designed to support same-day delivery and inventory precision. The disclosure from SVP Indira Uppuluri highlights how AI and digital twins are enabling faster, more reliable fulfillment for customers, directly impacting the e-commerce battle with Amazon. Retail analysts will note the workforce upskilling via Squiggly and partnerships with OpenAI and Google as a competitive differentiator.
Retailers have deployed AI chatbots widely, but Gartner finds consumer usage hasn't budged since 2022 while third-party gen AI usage doubled. Nearly 74% of B2B customers also use these tools to accomplish tasks, bypassing brand channels.
Shopify is transitioning its merchants to 'agentic storefronts' by default, allowing consumers to discover and purchase products directly within AI platforms like ChatGPT and Google Gemini. This move signals a massive shift toward AI-driven commerce, which McKinsey estimates could become a $1 trillion market.
Shopify is shifting its AI commerce strategy toward 'agentic storefronts' within ChatGPT, following OpenAI's decision to move away from native Instant Checkout. This model keeps the transaction on merchant sites while leveraging AI for discovery and product selection.
Source: digiday.com · Digiday
Furniture.com is overhauling its digital infrastructure and product data to maintain visibility as consumer behavior shifts from traditional search engines to AI chatbots. The move represents a broader industry transition toward Generative Engine Optimization (GEO) to capture traffic from tools like ChatGPT.
Source: Modern Retail · Digiday
The rise of generative AI chatbots is poised to disrupt the $38 billion retail search advertising market by shifting product discovery away from retailer-owned platforms. This shift threatens the high-margin revenue streams that have fueled recent retail growth, forcing a re-evaluation of the traditional closed-loop advertising model.
Retail and grocery brands have emerged as the primary advertisers on OpenAI's ChatGPT platform within just four weeks of its ad launch. Data from Sensor Tower indicates over 100 brand promotions, signaling a major shift in how consumer-facing companies leverage generative AI for direct marketing.
Amazon is pivoting from its retail roots to a technology-first powerhouse driven by generative AI and proprietary hardware. Under CEO Andy Jassy, the company is leveraging its AWS infrastructure and custom silicon to capture the next wave of enterprise cloud spending and startup innovation.
Source: The Motley Fool · Dan Caplinger (us)
Brands are pivoting their search strategies toward YouTube to capture visibility in AI-generated answers and zero-click search results. By leveraging YouTube's deep integration with Google’s Gemini and other LLMs, retailers are finding new ways to maintain brand presence as traditional web traffic declines.