OpenAI’s next disruption: E-commerce inside ChatGPT

OpenAI is entering the e-commerce space and developing a system to enable users to purchase products directly through ChatGPT, according to a report by the Financial Times. Implementing this system would allow the company to earn a commission on every purchase completed via the chatbot and could become a significant new revenue stream. It also has the potential to challenge Amazon’s dominance and change the way people shop for products and services.

Today, ChatGPT can already recommend products in response to relevant user queries (such as “Where is the best place to buy a Nintendo Switch 2 in Israel?”). These recommendations can include reviews of different options, price comparisons, product images, and links to purchase pages on online stores. The recommended products are selected based on user instructions (e.g., shirt size) and “memories”, ChatGPT’s ability to remember preferences or instructions from past conversations and apply them to new ones. The stores shown are chosen based on information from third-party providers.

Currently, OpenAI does not take a commission on purchases completed through ChatGPT. However, the company is working to change that. In April, it signed an agreement with e-commerce and payments services provider Shopify. Now, sources familiar with the matter told the Financial Times that OpenAI is working on integrating a purchasing system into ChatGPT, with merchants paying a commission to OpenAI on each sale completed through the chatbot.

The new feature is still under development, and the details could change. However, according to these sources, OpenAI and partners like Shopify have already demonstrated early versions to brands and are discussing financial terms and the commission structure.

Currently, the bulk of OpenAI’s revenue comes from paid subscriptions to its Plus ($20 per month) and Pro ($200 per month) plans. However, experts estimate that this revenue is not enough to cover the high costs of training and running the company’s AI models.

Entering the e-commerce market could provide OpenAI with an important new revenue stream and pose a significant threat to Amazon’s dominance in the sector. ChatGPT and similar chatbots are already capturing a growing share of activity traditionally handled by search engines. Brands are beginning to adapt to this trend, exploring how to optimize their product pages so that ChatGPT is more likely to display them in its answers.

ChatGPT holds several advantages when it comes to e-commerce. For decades, product searches have barely evolved: the user enters the item they want to buy in a search bar on Amazon or another e-commerce site and receives a list of results.

AI chatbots offer an improved experience. Instead of just returning a list of links, they deliver a detailed answer that compares options, considers the user’s stated preferences (for example, the cheapest products or fastest shipping times), and refines recommendations based on the user’s evolving instructions. The chatbot’s memory will allow it to deliver highly personalized results almost effortlessly. For example, if ChatGPT remembers that a user is a Star Wars fan, it could prioritize related costumes when asked about Purim costumes. If the user previously stated that they dislike the color orange, ChatGPT would know not to recommend orange shirts.

ChatGPT’s advanced image recognition capabilities open the door to even more possibilities, such as purchasing an item by uploading a photo, asking it to match accessories to existing clothing (e.g., uploading a photo of a shirt and asking for earring suggestions), or uploading a picture of living room furniture and asking for coffee table recommendations. A user could even take a full-body selfie and ask the bot to find clothing items that match their build. Often, the only limit will be the user’s imagination.

Integrating purchasing capabilities could also enable more sophisticated use cases. ChatGPT is already widely used for travel planning and can generate detailed itineraries with hotel, attraction, and restaurant recommendations. With integrated purchasing, it could not only build an itinerary but also offer the user the option to book flights, hotels, rental cars, and tickets, directly within the chat window, with a single click.

These are capabilities Amazon does not currently offer. If OpenAI succeeds, it could pose a serious challenge to Amazon’s dominance in online shopping and loosen the grip it holds over small merchants and brands. If users discover and buy products through ChatGPT, sellers’ dependence on Amazon decreases and the market becomes more diverse.

In the two and a half years since its launch, ChatGPT has already disrupted work, education, and information search. There’s no reason why online shopping shouldn’t be next.