OpenAI's Instant Checkout: The Future of AI Commerce?

Despite claiming to have no plans for advertising, OpenAI has introduced Instant Checkout, an in-app shopping feature. According to six marketing experts who spoke with Digiday, this move signals a shift towards agentic commerce, product discovery, and zero-click search, rather than an advertising strategy.

This shift suggests product discovery is evolving from search engines and marketplaces to AI-driven conversations. It's predicted that AI chatbots will become the new arena for brand awareness. As Digital Remedy's CEO, Martin Kristiseter, stated, it's becoming like optimizing for Google again; brands need to figure out how to appear prominently.

The launch of OpenAI’s Instant Checkout, which allows users to find, shop for, and buy within ChatGPT, was anticipated. A VML report indicates that 68% of global shoppers are using AI tools such as ChatGPT for shopping. Other large language models have similar features, like Perplexity’s Buy with Pro and Microsoft Copilot’s Merchant program.

Ad Spend and AI

Currently, ad spending hasn't significantly changed in response to these AI tools. Agencies express more concern about missing out on the AI trend than expecting immediate growth. Mike Feldman, SVP of commerce at Flywheel, notes the considerable potential for disruption but emphasizes a cautious, wait-and-see approach.

Challenges and Questions

Instant Checkout is still developing, with limited merchants and a somewhat clumsy user experience. Two marketing executives interviewed by Digiday expressed uncertainty about the level of insight merchants and agencies will have into brand sentiment and product ranking. OpenAI states that minimal data, only what is needed to complete the order, is shared with merchants.

Marketers are questioning how to allocate brand or performance dollars for testing and learning. They are also asking how AI chatbots rank products for shoppers, what data will be available regarding search queries, and if enough consumers will use AI chatbots to justify the investment. A strong online presence is crucial for brands to be visible in AI chatbots.

The Future of AI Commerce

According to Vayner Media's EVP of commerce, Zubin Mowlavi, the focus should be on how ChatGPT perceives a brand's overall web presence, rather than just direct product recommendations. Agency executives report existing client interest in agentic AI and AI commerce, although specific strategies are still being developed. However, Gartner predicts that over 40% of agentic AI projects will be abandoned by the end of 2027.

Tinuiti's EVP of innovation and growth, Simon Poulton, observes widespread curiosity but notes that many are just trying to stay informed. Building brands around AI assistants is becoming more important than empathy. Brad Jashinsky, director analyst at Gartner, suggests that this is just the start of a transformative journey.