What: Tech companies and retailers are developing AI "agents" capable of performing complex shopping tasks autonomously, with companies like Perplexity, Amazon, and OpenAI leading innovations in personalised shopping assistance and product discovery.

Why it is important: This innovation signals a fundamental change in online retail, where AI agents could transform the traditional search-and-browse model into a more efficient, personalised shopping experience, though success in categories like fashion and beauty remains uncertain.

AI shopping agents represent the next breakthrough in retail technology, offering capabilities beyond simple product recommendations. Perplexity's recent launch demonstrates these agents' ability to provide curated selections with detailed product information and, in some cases, complete purchases directly. Companies like Amazon are exploring agents that can suggest products and add them to shopping carts, while AWS aims to provide agent services to brands and retailers. Industry leaders, including Sam Altman and Vince Koh, envision agents that can understand style preferences through visual data and create seamless shopping experiences. While these agents show promise for commodity items, questions remain about their effectiveness in fashion and beauty, where emotional factors and brand perception play crucial roles in purchasing decisions.

IADS Notes: The emergence of AI shopping agents marks a significant shift in retail technology. While Perplexity's AI shopping assistant demonstrates early potential, broader industry adoption through partnerships like Amazon's AWS initiatives signals growing momentum. However, as highlighted in consumer behavior studies, the success of these tools in fashion and luxury retail depends on their ability to understand emotional and personal preferences beyond basic product matching.

AI agents to reshape finding and buying products online