Will "Chat Commerce" Lead to a Closed or Open Future? The Shopify-ChatGPT Rumblings

Source: Severance on Apple TV+

Rumors are swirling about a potential integration of Shopify directly into ChatGPT. 

From a user perspective, this sounds incredibly convenient. Imagine asking your AI assistant to find the perfect gift and being able to purchase it directly within the chat interface. This seamless experience hints at a future where conversational AI becomes a central hub for online shopping.

However, this development also sparks a familiar unease, echoing the era of America Online (AOL!). One where users were largely confined within a single, proprietary ecosystem. Similarly, the dominance of Internet Explorer leveraging the Windows install base. This raises serious concerns about powerful platforms potentially dictating user access and limiting choice.

The excitement surrounding MCP (Model Context Protocol) stems from the vision of open, collaborative AI chatbots, fueling an open internet. One that has empowered global participation in both conversation and the economy. I have so many questions. So many.

How open will these consumer-facing AI products truly be?

You can’t argue that there’s a growing role of AI in retail and the desire for personalized shopping experiences. Consumers are increasingly embracing AI tools for product discovery, price comparison, and recommendations. Publicis Sapient research* indicates that a significant majority of retail executives believe personalization or hyper-personalization will be crucial for their AI applications. Trendhunter also points to the rise of AI-powered shopping assistants that provide personalized recommendations and enhance the shopping experience. This suggests a fertile ground for "Chat Commerce."

What about the specter of closed ecosystems?

If OpenAI's integration with Shopify becomes deeply entrenched, will it favor Shopify merchants? Disadvantage others?

This leads to questions like: Does Amazon go on a shopping spree and buy up more e-commerce platforms (to hedge their bets)? What about the TikTok Shop phenomena that is gang-busters; even with the threat of a ban looming in the United States. Such moves could further consolidate power within specific AI-driven commerce platforms.

Would all of this that pass anti-trust muster? 

This concept of interoperability is crucial for maintaining an open internet. If AI shopping experiences remain siloed, the benefits of a decentralized, interconnected web could be diminished.

Is "Chat Commerce" the next big shopping category?

The trends suggest it has significant potential. Juniper Research forecasts substantial growth in global retail spending via chatbots. The convenience of conversational interfaces, coupled with AI's ability to understand user intent, could indeed make "Chat Commerce" a dominant force.

However, to ensure this future aligns with the principles of an open internet, several factors need consideration:

• Interoperability: Will different AI shopping platforms be able to communicate and access information across various e-commerce providers? The development and adoption of protocols like MCP could be vital here.

• Consumer Choice: Will users have genuine choice in which AI assistants and e-commerce platforms they use, or will defaults and platform lock-in limit their options?

• Data Privacy and Trust: As AI assistants gain access to more shopping data, ensuring responsible and secure data handling will be paramount. Consumers need to build trust in AI and have assurance that their personal data is being used responsibly.

• Transparency: How transparent will AI shopping platforms be about their recommendations and the businesses they promote? Companies must be transparent and purposeful in their use of generative AI to maintain trust.

The potential integration of Shopify and ChatGPT represents a significant step towards "Chat Commerce." While it promises enhanced user experience and personalized shopping, it also carries the risk of creating more closed ecosystems reminiscent of the early internet. The future of online shopping hinges on whether the development of AI-powered commerce prioritizes openness, interoperability, and consumer choice.

We must ensure that the convenience of "Chat Commerce" doesn't come at the cost of the open internet.

* Research is available via a custom Google Notebook LLM built via 48 data quality data sets, link to access content.