OpenAI Instant Checkout: The Future of AI Commerce?

OpenAI has introduced Instant Checkout, an in-app shopping feature, marking a potential step towards an advertising business, despite the company's reported lack of intentions to advertise. Commerce and marketing experts are focused on what this means for product discovery, agentic commerce, and zero-click search. Six marketers shared their insights with Digiday.

Product discovery is shifting from search engines and marketplaces to conversations powered by AI, signaling a change. It is expected that AI chatbots will become a key area for brand awareness.

According to Martin Kristiseter, the CEO of Digital Remedy, this shift is reminiscent of Google and SEO, raising questions about how brands can ensure they appear prominently. Given the increasing use of AI chatbots for online searches, the introduction of OpenAI’s Instant Checkout for shopping within ChatGPT was anticipated.

VML, a creative agency, published a report stating that 68% of shoppers globally have utilized AI tools like ChatGPT for shopping. Other large language models provide similar features, such as Microsoft Copilot’s Merchant program and Perplexity’s Buy with Pro functionality.

Agency executives note that advertising spending has not yet shifted in response to these tools. There's more concern about being late to adopt AI than there are expectations of growth. Mike Feldman, the SVP of commerce at Flywheel, stated that the feature is generating client inquiries. He added that, like much of AI, it has significant potential for disruption but is still in an early phase.

Instant Checkout is in its early stages, with a limited number of merchants and a user experience that needs refinement. Two marketing executives who spoke with Digiday noted that it's unclear how much access merchants and their advertising partners will have to insights regarding product listing rankings and brand sentiment. OpenAI stated that data shared with merchants is limited to information required to complete the order.

Marketers are considering if performance or brand dollars should be allocated for experimentation. They're also questioning how AI chatbots rank products for shoppers, what data will be available regarding search queries, and whether enough consumers will begin their searches with AI chatbots to justify the investment. It's becoming clear that excelling in both AIO and GEO depends on brands establishing a strong web presence to be visible in AI chatbots.

Zubin Mowlavi, the EVP of commerce at Vayner Media, questions how a brand can ensure that ChatGPT recommends its product and how ChatGPT views the brand's overall presence on the web.

Four agency executives noted existing client interest in AI commerce and agentic AI, but strategies and budgets are still being developed. It's possible that agentic AI may be sidelined within 12–18 months. Gartner predicts that over 40% of agentic AI projects will be abandoned by 2027. Simon Poulton, the EVP of innovation and growth at Tinuiti, observed that there is widespread curiosity, with many trying to stay informed.

Building brands around AI assistants carries high stakes. Brad Jashinsky, a director analyst at Gartner, believes that this is the beginning of their turnaround journey.