OpenAI Instant Checkout: The New Google?

OpenAI has introduced Instant Checkout, an in-app shopping feature, hinting at a potential advertising business despite previous reports. Experts in commerce and marketing are focused on what this means for agentic commerce, zero-click search, and product discovery. According to six marketers who spoke with Digiday, product discovery is shifting away from traditional search engines and marketplaces and is heading toward AI-driven conversations. It's anticipated that AI chatbots will emerge as the next area for brand awareness efforts.

According to Martin Kristiseter, CEO of Digital Remedy, it's becoming like Google and SEO all over again, with brands looking to optimize their visibility within the system. The launch of OpenAI's Instant Checkout, enabling users to search, shop, and make purchases within ChatGPT, was expected, as more shoppers begin their online searches using AI chatbots. A VML report indicates that 68% of global shoppers have used AI tools like ChatGPT for shopping.

Other large language models provide comparable features, such as Perplexity’s Buy with Pro and Microsoft Copilot’s Merchant program. However, ad spending hasn't yet significantly changed in response to these tools, according to agency executives. Currently, there is more concern about missing out on the AI trend than there are expectations for growth. Mike Feldman, SVP of commerce at Flywheel, stated that it is generating client interest but remains a developing area with significant potential for disruption.

Instant Checkout is in its early stages, with limited merchants and a user experience that could be improved. Two marketing executives who spoke with Digiday noted that it's unclear how much insight merchants and their ad agency partners will have into aspects such as product listing rankings and brand sentiment. OpenAI stated that data sharing is kept to a minimum, with only necessary order information shared with the merchant.

Marketers are considering how to allocate brand or performance dollars for testing and learning, how AI chatbots rank products for shoppers, what search query information will be accessible, and whether enough consumers will use AI chatbots to start their searches to justify the investment. It is becoming clear that AIO and GEO are becoming a new race, where a strong web presence is critical for brands to be visible in an AI chatbot. Zubin Mowlavi, EVP of commerce at Vayner Media, noted the importance of how ChatGPT perceives a brand's overall web presence.

Four agency executives reported existing client interest in AI commerce and agentic AI, although specific strategies and budgets are still being developed. However, agentic AI could be sidelined in the next 12 to 18 months as it goes through a period of disillusionment. Gartner projects that over 40% of agentic AI projects will be abandoned by 2027. According to Simon Poulton, EVP of innovation and growth at Tinuiti, there is widespread curiosity, with many trying to stay informed. Building brands around AI assistants will require more than empathy. The director analyst at Gartner, Brad Jashinsky, stated, “This is just the beginning of their turnaround journey.”