Business
AI is changing shopping. Will consumers buy in?
Carolyn Bennett remembers flipping through a yellow telephone book in the 1980s to find carpet stores and workers who refinished wood to help renovate her home.
Today, the 67-year-old uses a chatbot to help her shop. Bennett has turned to ChatGPT, which she refers to as “Chat,” to find vendors for a kitchen renovation project, compare heat pumps and weigh in on whether she should buy a convection oven.
The San Francisco resident could have browsed websites on Google, but she prefers using ChatGPT to save time.
“Any product that has multiple features that you want to compare across different products, I think it’s super helpful,” she said.
The rising popularity of artificial intelligence-powered chatbots that can generate text and images is already changing the way people brainstorm ideas, write and research. Tech companies and payment services are also betting that AI will transform how people shop. They’re even experimenting with AI agents that can place orders on a customer’s behalf with their permission.
Google, Amazon and other major tech platforms envision a future where online shopping becomes even more personalized and proactive. But companies will also have to convince consumers to buy into the idea, ensuring them that they’re protecting their privacy and providing accurate results.
AI chatbots have spewed out incorrect or nonsensical information before. And shoppers might be reluctant to give control to AI agents, especially when it comes to handing them their credit card, some retail experts said.
“There’s a lot of concern about the reliability of these kinds of tools,” said Rachel Wolff, a retail and ecommerce analyst at eMarketer. “So you might not want to trust these agents fully to make decisions on your behalf.”
For now, AI shopping experiences are growing. Last month, OpenAI said it’s experimenting with new shopping features, including a way to see images and prices of several products along with links for people to buy the items.
Perplexity, which introduced a new feature last year that allows subscribers to buy items through its chatbot, also teamed up with Visa to help improve its shopping experience in the future.
“Visa knows a lot about its customers, and if customers opt in, there can be that anonymized data sharing, so that the recommendations you get in Perplexity are in line with your kind of purchase and transaction history so you can get better quality answers,” said Dmitry Shevelenko, Perplexity’s chief business officer.
(The Los Angeles Times partners with Perplexity to generate summaries of ideas expressed in opinion pieces.)
These efforts are still early, but AI companies are also trying to differentiate themselves from rivals such as Amazon and Google that also have chatbots and AI shopping features. Both Perplexity and OpenAI note the products shown within their chatbots are not ads. The chatbots cite websites that review and rate mattresses, coffee makers and other products.
Google also is stepping up its AI shopping features as it competes with OpenAI. Last week, the search giant said in the coming months people will be able to use AI mode, a tool where people can ask questions and get answers like they would to a chatbot, to find and compare products. The tool is powered by Google’s AI model Gemini.
Vidhya Srinivasan, who leads the Ads and Commerce teams at Google, said Monday in a press briefing before Google’s annual I/O developers conference that the company displays search results in AI mode based on what’s most relevant to questions people are asking.
Some of the results also highlighted reviews from websites, but Google has more than 50 billion product listings and that information gets refreshed.
“We’re doing even more personalization in this mode, where we get to personalize based on brands and styles,” Srinivasan said.
The Mountain View-based company is exploring and experimenting with ads in their AI shopping experiences. Google unveiled other AI shopping tools, including a way to try out clothes virtually and buy products when the price falls.
Visa executives say they envision a future in which AI agents will book plane tickets, hotel rooms and other services and products on behalf of the customer with their approval.
Rajat Taneja, president of technology for Visa, said that people will be able to set limits around what an AI agent could purchase like when someone hands over their credit card to a friend, family member or assistant, to help them shop.
The San Francisco-based payment company, partnering with such AI companies as OpenAI, Perplexity and Anthropic, unveiled a new initiative in late April to enable AI agents to shop and buy products for people but that work is still being tested.
Product recommendations, he said, will only get more personalized in the future.
“They’re going to be different ways in which this will manifest itself, much like the analogy of the internet has evolved in so many different ways,” Taneja said. “The most important thing is we are all unique, in our likes, in our dislikes, in what we gravitate towards and what we buy.”
Consumers are already using generative AI for shopping, research shows. Adobe Analytics, which surveyed 5,000 U.S. consumers, said that 39% reported using generative AI for online shopping and 53% planned to do so this year. Shoppers used generative AI for research, product recommendations, deals and other shopping tasks, according to the survey.
Capgemini Research Institute, which surveyed 12,000 adult consumers across 12 countries, found that 24% of consumers used generative AI in shopping experiences. The use was higher among Gen Z and millennials compared to Gen X and boomers. But the survey also found that consumer satisfaction with generative AI also fell.
Elliot Padfield, a 21-year-old growth marketing consultant in San Francisco, uses AI for other tasks but he says the shopping experience has fallen short. As a result, he doesn’t always trust a chatbot’s recommendations.
When he tried out shopping on Perplexity for the first time, his order never arrived but he was able to get a refund.
And while chatbots can provide a comparison of four types of wireless headphones, for example, he wants more information about how the recommendations fit his needs and priorities.
“I still have to guide the AI through supporting me in the way that I need it to,” he said. “I actually find it easier at that point to then just go to the retailer.”
From going to the mall to shopping on websites or through social media, retail experts see generative AI as just another option for consumers.
Retailers will have to learn how to navigate chatbots that might not recommend their products. But AI could also level the playing field for small businesses, experts say, if the results aren’t based on optimizing for a search engine or buying a ton of ads.
Caroline Reppert, director of AI and Technology Policy at the National Retail Federation, said she thinks generative AI is here to stay. Ultimately retailers will meet consumers where they are, she said.
“The trend is kind of still emerging and we’ll see if it ends up being an enduring one,” Reppert said.
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
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Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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