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Information Technology

TikTok goes to war with ChatGPT; an AI shopping assistant is on the way

TikTok on Monday announced it is launching an AI shopping assistant and a new in-app payment feature that will allow users to buy directly from brands. TikTok describes its new shopping assistant as a conversational AI agent designed to help users discover and purchase products. The company says the

TikTok on Monday announced it is launching an AI shopping assistant and a new in-app payment feature that will allow users to buy directly from brands.

TikTok describes its new shopping assistant as a conversational AI agent designed to help users discover and purchase products. The company says the assistant understands context and remembers users’ preferences and needs throughout the conversation. The assistant provides instant AI-powered shopping guidance, such as product details, shipping information, sizing, inventory, and help completing purchases.

Regarding the new payment feature, TikTok says users will be able to buy directly from a brand in the For You feed (the app’s main algorithmic video feed) with one click.

These new features could allow TikTok to capture more of users’ shopping journeys - and potentially more transaction value - without sending users elsewhere. By pairing the shopping assistant with direct payments, TikTok turns its discovery feed into a place where users can get answers about a product and buy it on the spot.

By building an AI assistant for direct in-app shopping, TikTok appears to be hoping users will stay on its platform when they have questions about a product instead of turning to external AI tools like OpenAI’s ChatGPT.

The company says these new features are being developed in partnership with commerce platforms and payment providers including Salesforce, Shopify, Shoplazza, Stripe and others.

While TikTok Shop, the app’s in-app marketplace, has been the platform’s main engine for its e-commerce ambitions, these new features expand its approach beyond the existing storefront. Rather than relying on TikTok Shop to drive purchases, the social network is now integrating shopping tools directly into the broader app, including the For You feed.

According to TechCrunch, the expansion comes as TikTok’s influence on shopping continues to grow. Per an economic impact report from TikTok published last week, activity on the platform helped generate $81 billion in GDP for U.S. businesses, while 54 million Americans said they purchased a product after watching a TikTok video.

TikTok Shop launched in the U.S. in September 2023. Market research firm eMarketer estimates the shop will do about $15.8 billion in U.S. sales in 2025, roughly 18% of total U.S. social commerce.

Originally published by Information Technology News - ITNA

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