OpenAI and Perplexity Launch AI Shopping Assistants, but Startups Remain Confident

With the holiday shopping season approaching, OpenAI and Perplexity have rolled out AI shopping assistants designed to help users research and discover products more efficiently. OpenAI’s ChatGPT now allows shoppers to request tailored suggestions, such as “a gaming laptop under $1000 with a 15-inch screen,” or even find similar items to high-end fashion pieces at lower prices. Perplexity, on the other hand, emphasizes its chatbot’s memory, offering recommendations based on a user’s location, occupation, and past preferences.

Industry analysts are predicting a major surge in AI-assisted shopping this season. Adobe forecasts a 520% increase in online shopping aided by AI, creating opportunities for startups like Phia, Cherry, and Onton. Despite this potential, some experts question whether smaller startups can compete with giants like OpenAI and Perplexity.

Zach Hudson, CEO of Onton, an interior design shopping platform, believes niche-focused AI tools still have an edge. “Any model is only as good as its data sources,” Hudson explained. “ChatGPT and tools like Perplexity rely on general search engines, which limits the depth and quality of their recommendations.” Julie Bornstein, CEO of Daydream, echoed this view, highlighting that fashion shopping demands nuanced understanding of fabrics, silhouettes, and personal style—something general-purpose AI struggles to replicate.

Specialized AI shopping startups create their own high-quality datasets, which allows them to offer more precise, context-aware recommendations. For instance, Onton developed a comprehensive pipeline to catalog hundreds of thousands of interior design products, training its models on clean, domain-specific data. Hudson warns that without this level of specialization, smaller companies may struggle to stand out against AI giants with massive user bases.

Still, OpenAI and Perplexity hold distinct advantages. Their established platforms already attract millions of users, and partnerships with Shopify and PayPal enable seamless in-chat purchases. While these big players continue exploring paths to profitability, vertical AI models in sectors like fashion, travel, and home goods may maintain a competitive edge, delivering more meaningful and personalized shopping experiences than generalist AI assistants.

source: techcrunch