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An AI agent could soon compare deals, book flights and pay the bills

by Chief Editor
written by Chief Editor

The Rise of the AI Shopping Assistant: How Agentic Commerce Will Reshape Retail

Forget endlessly scrolling through websites. The future of shopping isn’t about *you* finding products; it’s about products finding *you* – or rather, an AI agent finding them for you. This emerging trend, dubbed “agentic commerce,” is poised to revolutionize how we buy everything from flights to furniture, and major players like Visa and Mastercard are already laying the groundwork.

What Exactly *Is* Agentic Commerce?

At its core, agentic commerce leverages artificial intelligence to act as your personal shopper. Instead of manually searching and comparing prices across multiple platforms, you simply tell an AI agent what you need. For example, “Find me a highly-rated noise-canceling headphone under $200 with at least a 4.5-star rating.” The agent then handles the entire process – searching, comparing, and even completing the purchase – all within a conversational interface like ChatGPT or a dedicated shopping app. This moves beyond simple chatbots offering product information; it’s about AI taking action on your behalf.

Mastercard’s EVP for Core Payments in Asia Pacific, Sandeep Malhotra, describes it as a shift “from digital to intelligent.” It’s a logical progression, building on the convenience of e-commerce and adding a layer of proactive assistance.

Beyond Flights and Headphones: Real-World Applications

The potential applications are vast. Consider these scenarios:

  • Dynamic Price Monitoring: An agent could be programmed to automatically purchase an item when it drops below a specific price, even while you’re offline.
  • Personalized Vacation Planning: “Book me a family-friendly all-inclusive resort in the Caribbean for next summer, with a budget of $5,000.”
  • Automated Grocery Shopping: Based on your dietary preferences and past purchases, an agent could create a shopping list and order groceries for delivery.
  • Complex Product Research: “Find me a laptop suitable for video editing, with at least 16GB of RAM, a dedicated graphics card, and a long battery life.”

Early pilots are already underway. Visa’s APAC Head of Products and Solutions, T.R. Ramachandran, anticipates commercial use of personalized, secure agent transactions as early as the first quarter of 2026. OpenAI’s “Buy it in ChatGPT” feature and Perplexity’s partnership with PayPal are early examples of this functionality in action.

The Tech Behind the Magic: Agentic Tokens and Secure Transactions

A key challenge is ensuring security and preventing fraud. Payment companies are developing “agentic tokens” – cryptographic authentication methods that verify the legitimacy of AI agents and distinguish them from malicious bots. Visa’s “Trusted Agent Protocol” with Cloudflare is a significant step in this direction. These tokens, combined with “payment signals” providing banks with more transaction details, aim to strengthen agent authentication and build trust.

Did you know? AI-driven traffic to retail sites in the U.S. increased by a staggering 4,700% in July 2023 compared to the previous year (Adobe study).

The Merchant Response: Adaptation and Innovation

While agentic commerce promises benefits for consumers, merchants are understandably cautious. Concerns about price pressures and losing direct customer relationships are driving some to develop their own AI agents. Amazon’s “Buy For Me” is a prime example, alongside efforts to restrict external AI agents from scraping their website.

Merchants will likely need to adapt by:

  • Implementing agent verification systems.
  • Creating their own AI agents to interact with consumer agents.
  • Developing innovative loyalty programs.
  • Redesigning upsell strategies for an agentic world.

The Liability Question: Who’s Responsible When Things Go Wrong?

One of the biggest hurdles is determining liability when an AI agent makes a mistake – ordering the wrong size, booking the wrong hotel, or making an unauthorized purchase. The traditional four-party dispute resolution system (consumer, issuing bank, acquiring bank, merchant) now needs to accommodate a fifth player: the AI platform.

Ramachandran emphasizes the need for “guardrails and protection,” suggesting robust dispute systems and clearer permissions will be crucial.

Challenges and Future Outlook

Despite the challenges, the momentum behind agentic commerce is undeniable. The increasing adoption of large language models (LLMs) and the growing consumer demand for AI-powered shopping assistance suggest this trend is not a fleeting fad.

Pro Tip: Start experimenting with AI-powered shopping tools now to understand their capabilities and limitations. Familiarize yourself with platforms like ChatGPT and explore features like OpenAI’s “Buy it in ChatGPT.”

Frequently Asked Questions (FAQ)

Q: Will agentic commerce replace traditional e-commerce?
A: Not entirely. It’s more likely to *augment* e-commerce, offering a more convenient and personalized shopping experience for certain types of purchases.

Q: Is my financial information safe with AI shopping agents?
A: Security is a top priority. Agentic tokens and robust authentication protocols are being developed to protect your data and prevent fraud.

Q: What if an AI agent makes a mistake with my purchase?
A: New dispute resolution systems are being designed to address this, involving the consumer, banks, the merchant, and the AI platform.

Q: How soon will agentic commerce be widely available?
A: Early commercial applications are expected in 2026, with wider adoption likely in the following years.

What are your thoughts on the future of AI-powered shopping? Share your opinions in the comments below! For more insights into the latest tech trends, subscribe to our newsletter and explore our other articles on artificial intelligence and the future of retail.

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Business

AI ChatGPT Boosts Holiday Shopping: Walmart & Target Join In

by Chief Editor
written by Chief Editor

How Generative AI Is Rewriting the Holiday Shopping Playbook

Retail tech leaders and everyday shoppers alike are discovering that a chat with an AI can replace hours of scrolling, price‑checking, and review‑reading. From holiday gift‑finding to everyday purchases, generative AI platforms such as ChatGPT, Gemini, and Perplexity are becoming the new “store associate” that millions trust.

The $263 B AI‑Driven Sales Forecast

Analysts predict AI‑powered recommendations will drive more than $260 billion in global online holiday sales, accounting for roughly one‑fifth of all orders. Surveys from Visa, Zeta Global and others show that up to 83 % of consumers plan to use AI for shopping this season, while Adobe reports a 760 % surge in AI‑related traffic to U.S. retail sites.

What AI Does Differently (and Better)

  • Contextual Understanding: Shoppers type natural‑language queries like “best gift under $20 for a teen who loves skateboarding,” and AI returns curated lists that match lifestyle, budget, and preferences.
  • Higher Purchase Intent: Retail sites receiving AI‑driven visits see a 30 % increase in conversion likelihood and spend 14 % more time on page compared with traditional search traffic.
  • Revenue per Session: Adobe data shows AI‑originated sessions generate ~8 % more revenue per visit.

Real‑World Success Stories

Amrita Bhasin, a 24‑year‑old retail‑tech CEO, cut her holiday shopping time from over 15 hours to a single afternoon using ChatGPT, and discovered half of the gifts she bought were from brands she’d never known before.

Ethique Beauty revamped its product pages with solution‑focused language (“best for flaky scalp”) and saw a 90 % jump in AI‑derived traffic within six months.

Lalo, a boutique baby‑goods brand, expanded its listings with phrases like “great for small apartments” and reported a measurable lift in AI‑driven sales.

Retailers’ Strategic Shifts: From SEO to AEO

Traditional search‑engine optimization (SEO) focused on keyword stuffing and paid placements. The rise of answer‑engine optimization (AEO) forces brands to supply richer, conversational data that AI can parse. Retailers are now:

  • Reformatting product pages to include detailed specifications, use‑case narratives, and sustainability credentials.
  • Providing direct product feeds to AI platforms for real‑time inventory and pricing updates.
  • Investing in “instant checkout” capabilities that let shoppers complete purchases inside the chat window.

Big Players Join the AI Race

Walmart, Target, Etsy, and Shopify have partnered with OpenAI to enable in‑chat searches and purchases. Walmart’s in‑app assistant “Sparky,” Target’s “Gift Finder,” and Amazon’s “Rufus” each aim to keep shoppers inside their ecosystems while delivering personalized suggestions.

Conversely, Amazon has taken a defensive stance, blocking external crawlers from its site and even sending cease‑and‑desist letters to AI startups, signaling a split in industry approaches.

Pro tip: Optimize for Conversational Queries

Craft product descriptions that answer “why” and “how” questions. Example:

Instead of “Organic cotton T‑shirt – Size M,” try “Soft, breathable organic cotton T‑shirt perfect for summer hikes, available in size M for a relaxed fit.”

When AI Misses the Mark

Not every AI interaction is flawless. Users report repetitive suggestions, generic “gift guide” links, or overly narrow recommendations that ignore nuanced preferences. These gaps underscore the need for continuous model training and human‑in‑the‑loop oversight.

For shoppers who value discovery, the joy of browsing physical stores or curated online boutiques remains vital. Brands that blend AI efficiency with inspirational curation are likely to win long‑term loyalty.

Frequently Asked Questions

What is answer‑engine optimization (AEO)?
AEO is the practice of structuring content so generative AI can surface it in direct answers, rather than just listings in traditional search results.
Can AI replace human sales associates?
AI excels at fast, data‑driven recommendations, but human agents still add empathy, nuanced expertise, and surprise‑factor discoveries.
How do I make my product visible to ChatGPT?
Supply clean, structured data feeds, enrich descriptions with conversational language, and ensure inventory and pricing APIs are up to date.
Is “instant checkout” secure?
Yes—OpenAI and partner retailers employ encrypted payment flows and compliance with PCI‑DSS standards, just like standard e‑commerce checkout.
Will AI reduce the need for SEO?
SEO will evolve. Core principles (relevant content, technical health) remain, but the focus shifts to semantic relevance for AI prompts.

Did you know?

AI‑driven shoppers are 30 % more likely to add items to their cart after a recommendation, compared with those who discover products through keyword search.

What’s Next for Retail?

Expect tighter integration of AI assistants across omnichannel experiences, richer product storytelling tailored for conversational queries, and a growing market for “AI‑first” storefronts that exist primarily inside chat environments.

Join the Conversation

Are you already using AI to shop or sell? Share your experiences in the comments below, or subscribe to our newsletter for weekly insights on the future of retail technology.

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Business

Affirm, PayPal, fintechs plunge on concerns Trump tariffs hit consumer

by Chief Editor
written by Chief Editor

The Ripple Effect: How Tariffs Impact Fintech and Credit Companies

Following President Donald Trump’s recent announcement of sweeping tariffs, the global market experienced significant turbulence. This economic shockwave had a notable impact on fintech companies and credit card issuers, heavily intertwined with consumer spending and credit trends. Companies like Affirm, Robinhood, and PayPal faced steep declines, signaling potential challenges ahead for those in the fintech space. Let’s dive into what this means for the future.

Tariff Implications on Consumer Spending and Fintech

When President Trump laid out the U.S. “reciprocal tariff” plans, the $2 trillion wipeout from the S&P 500 highlighted the market’s trepidation. The tariffs, initially set at a baseline of 10%, varied for different countries, creating a volatile environment for businesses dependent on international markets and consumer spending.

Fintech companies, in particular, face the challenge of decreased transaction volume and potential credit performance issues. As Sanjay Sakhrani from Keefe, Bruyette & Woods noted, companies like PayPal and Affirm—risk-heavy due to their reliance on cyclical consumer spending—are at greater jeopardy. Conversely, larger financial companies, with more defensive business models, show greater resilience.

Business Models in Turbulence

While fintech giants like Affirm took a hit, payment processors such as Visa and Mastercard, and Fiserv remained relatively stable. Dan Dolev of Mizuho remarked that these entities are seen as “safe havens” during tariff-induced volatility. This stability underscores the importance of diversified and robust business models in weathering economic storms.

Rising Prices and Buy Now, Pay Later Solutions

With higher consumer prices potentially on the horizon, fintech products like buy now, pay later plans could see increased demand. Affirm CFO Rob O’Hare suggested that such services could benefit during times of economic strain by easing consumer spending pressures. However, delinquency rates become a concern in prolonged downturns, with private-label card delinquency rates often doubling those of standard credit cards, as highlighted by analyst James Friedman.

Future Trends and Strategies

The shifting landscape necessitates adaptive strategies for fintech companies. To mitigate risks, firms might focus on diversifying their product offerings and strengthening credit assessment measures. Engaging real-life case studies—like Affirm’s response to changing consumer needs—can provide actionable insights into future trends.

FAQs: Understanding Tariffs and Fintech Risks

  • How do tariffs directly affect fintech companies? Tariffs can reduce consumer spending power, impacting transaction volumes and increasing delinquency risk for services like installment credit.
  • Which fintech companies are more vulnerable? Companies heavily reliant on consumer spending and with less diversified portfolios, such as Affirm, face greater vulnerability during tariff upheavals.
  • What strategies can fintech companies adopt to mitigate risks? Diversifying product offerings, enhancing credit assessment protocols, and creating flexible payment solutions are effective strategies.

Pro Tip: Keeping an Eye on the Market

“Monitor macroeconomic indicators and geopolitical events closely, as they directly influence consumer behavior and spending patterns—key factors for fintech success.”

Engage with Us

As we continue tracking the impact of tariffs on the fintech industry, we invite you to share your insights and questions. Join the discussion below or explore more in-depth analyses on related topics to stay informed and prepared.

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Business

Stock market news for Jan. 26, 2025

by Chief Editor
written by Chief Editor

Investors Brace for Earnings Week: The ‘Magnificent 7’ Take Center Stage

As stock futures traded lower on Sunday night, traders and investors turned their eyes to an eventful earnings week ahead. This week promises insights from four out of the seven influential companies known as the ‘Magnificent Seven,’ with giants like Meta Platforms, Microsoft, Tesla, and Apple set to release their quarterly earnings.

Earnings as a Signal for Bull Market Vitality

Prospective earnings reports from these tech titans are crucial as they offer a glimpse into whether artificial intelligence-driven market gains can be sustained. Positive earnings results could steer more traders toward the bulls, bolstering confidence in the tech sector, which accounts for nearly 40% of the broader market.

“The tech narrative remains strong,” declares Ken Mahoney, CEO of Mahoney Asset Management. “While valuations are on the higher side, investors are still drawn to these stellar growth opportunities.”

Diverse Portfolio: Beyond Tech Heavyweights

Aside from tech, this earnings season is brimming with reports from well-established names like Starbucks, Boeing, General Motors, Visa, and Exxon. Such reports will help paint a more comprehensive picture of the economic landscape, beyond the tech sphere.

Recent data indicates that earnings seasons have thus far been robust. Analyzed data from FactSet indicates that 80% of S&P 500 companies already reporting their fourth-quarter results have surpassed earnings per share expectations, with 62% outperforming revenue projections.

The Federal Reserve’s Stance Amidst Economic Indicators

In conjunction with earnings updates, the Federal Reserve’s January meeting and the release of inflation data from the personal consumption expenditures price index will be closely watched. Current Fed funds futures predict a high likelihood of steady interest rates, aligning with the present market sentiment.

Sustaining the Bull Market

Despite December’s market dip, the major U.S. indexes, including the S&P 500, have shown resilience with back-to-back positive weeks. The S&P 500 even achieved a new intraday record in recent sessions, affirming investor optimism that the bull market holds steady.

Interactive Elements: Insights and Tips

Did you know?

Historically, strong earnings results from the ‘Magnificent Seven’ have often led to positive market reactions, reinforcing confidence in the tech-led bull market.

Pro Tip:

Keep an eye on alterations in revenue growth forecasts, as these are often early indicators of shifts in market dynamics.

FAQs About Earnings Season and Market Trends

Q: Why are the earnings of the ‘Magnificent Seven’ so crucial?

A: They represent a substantial portion of the market and serve as a barometer for broader economic and sectoral health.

Q: How do earnings reports influence stock prices?

A: Positive surprises can boost confidence and lead to stock price increases, while disappointments might trigger sell-offs.

Stay Ahead of Market Trends

As we delve deep into earnings season, staying informed through credible reports is vital. For more insights into market trends, read our latest articles on tech sector advancements and economic forecasts.

Call to Action: Have thoughts on this week’s earnings reports? Share your insights in the comments below and subscribe to our newsletter for weekly market updates.

This content provides a concise overview of the potential future trends related to the earnings reports from major companies and the Federal Reserve’s potential actions. It is formatted for ease of embedding in WordPress and structured to enhance readability and SEO.

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