While the trial feature researches products and presents users with options, it can\u2019t currently execute the transactions without users consenting by clicking a \u201cbuy\u201d button, but Whittle said technology was advancing at a rapid pace and would soon operate automatically.<\/p>\n
\u201cIt cuts out all that friction, that time spent looking at specifications and prices, and gives you recommendations directly,\u201d Whittle said.<\/p>\n
\u201cIf you think of the last few decades, there\u2019s been all this infrastructure set up for online shopping, search engine optimisation and collecting data through cookies, or to direct customers to your website, but there\u2019s a risk for businesses now that their websites kind of become irrelevant, because people won\u2019t be going to individual product pages, they\u2019ll be going through their AI chat tool,\u201d he said.<\/p>\n
Whittle expected agentic shopping technology would soon be able to anticipate time-sensitive events such as policy renewal dates or the birthdays of loved ones, and present users with potentially better deals or gift ideas based on personalised knowledge of a friend or family member.<\/p>\n
The technology can also balance preferences about product cost and trade-offs with other benefits such as reward and loyalty point earning potential.<\/p>\n
However, Whittle said a key question would be how agentic shopping bots are monetised, with the potential for product placement something that could challenge consumers\u2019 trust in the technology.<\/p>\n
\u201cIs the product it shows you based on your preferences, rather than some special deal with certain vendors behind the scene?\u201d he said. \u201cAll of these AI companies are haemorrhaging money now, and if you look at the way tech companies have made money in the past, it\u2019s been through web search advertising or taking a cut of a sale.\u201d<\/p>\n
\u201cThe question arises if consumers are being manipulated into certain types of products, but that already exists to some extent with web searches and algorithmic advertising,\u201d Whittle said.<\/p>\n
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Agentic shopping powered by AI is set to challenge a broad range of business models, but experts are now sounding a particular alarm for industries such as insurance, where companies have tended to rely on inertia amongst customers and the perception that significant time and effort is required to shop around and switch providers.<\/p>\n
TaeWoo Kim, a lecturer specialising in technology and human decision-making at the University of Technology Sydney\u2019s business school, echoed the prediction that agentic shopping would challenge industries such as insurance.<\/p>\n
\u201cInsurance companies want customers to be less scrutinising of their offers and comparing quotes. Customers don\u2019t tend to change providers because it requires lots of effort,\u201d Kim said.<\/p>\n
While larger insurers often gain customers who trust their branding and large market presence, agentic shopping could instead lead customers away from that bias and towards cheaper prices from smaller competitors, Kim said.<\/p>\n
Unlike humans, agents wouldn\u2019t suffer from decision paralysis, he said.<\/p>\n
Equally, insurance providers have already begun using AI agents on their end to communicate with customers and gather their information for quotes and claims, Kim said, which could make it an easier concept for consumers to embrace agentic shopping bots to represent them.<\/p>\n
\u201cThere could soon be a future where it\u2019s not a business talking to a customer, but an AI bot talking to another AI bot,\u201d Kim said. \u201cIt\u2019s just like a sci-fi movie.\u201d<\/p>\n