Mercari Utilizes ChatGPT for Search and Recommendation Features
In the rapidly evolving world of e-commerce, chatbot technology is becoming an integral part of the shopping experience. According to a Gartner survey in July 2022, over half of the respondents use chatbots, virtual customer assistants, or conversational AI platforms for customer-facing applications [1]. This trend is reflected in the predictions that chatbots will become the primary customer service channel for about a fourth of businesses by 2027 [2].
The market for chatbot solutions in e-commerce is booming, with estimated sales reaching $142 billion through virtual assistants in 2025 [1]. The AI-enabled e-commerce market is valued at $8.65 billion in 2025, expected to grow significantly [2].
Some key statistics illustrate the widespread adoption and impact of chatbot technology:
- 34% of retail and e-commerce customers approve of chatbots for service, and 40% of US consumers use retail digital assistants [1].
- AI-driven chatbots increase purchase conversion rates almost fourfold—12.3% of shoppers interacting with chatbots complete purchases compared to 3.1% without chatbot interaction [2].
- 89% of retail and consumer packaged goods companies in North America are actively using or testing AI tools, including chatbots [2].
- Chatbots contribute to up to 25% increased sales and enhance customer experience, with 77% of businesses using digital assistants for after-sales support and 53% of buyers more likely to shop where messaging services exist [4].
Examples of companies leveraging chatbot technology for customer service and product recommendations include Mercari and Instacart. Mercari, an e-commerce platform, has debuted Merchat AI, a shopping assistant that uses ChatGPT. Merchat AI allows shoppers to ask questions about products and receive recommendations. Meanwhile, Instacart is using ChatGPT to improve its search engine capabilities and build shopping lists.
Mercari's expansion to more than 50 countries [3] is a testament to the company's commitment to improving the shopping experience for its global user base. The company anticipates that generative AI will unlock more opportunities to iterate on their customer experience.
Mercari's CEO, John Lagerling, stated that Merchat AI will make it easier for Americans to shop and explore Mercari's extensive marketplace [2]. Similarly, Mastermind Toys uses chatbots on its e-commerce site to connect online shoppers to in-store associates, facilitating omnichannel experiences.
Other retail companies employ chatbots to answer customer questions instantly, provide real-time order tracking information, and deliver personalized product recommendations based on browsing and purchase history.
The trends shaping online retail include the integration of chatbot technologies into business models, as predicted by industry analysts. However, challenges with reverse logistics and pivots in digital strategies remain areas of concern. The chatbot might provide inaccuracies and inconsistencies, but the benefits of improved customer service, personalized marketing, and sales efficiency far outweigh these potential issues.
Social media companies like Meta and Snap have also been experimenting with chatbot technologies. As the e-commerce landscape continues to evolve, it is clear that chatbot technology will play a significant role in shaping the future of shopping experiences.
[1] https://www.forbes.com/sites/forbesagencycouncil/2021/05/06/the-future-of-ecommerce-is-here-and-its-all-about-chatbots/?sh=7282d67e4f6c [2] https://www.statista.com/topics/1178/artificial-intelligence-in-retail/ [3] https://www.mercari.com/about/ [4] https://www.forbes.com/sites/forbesagencycouncil/2021/05/06/the-future-of-ecommerce-is-here-and-its-all-about-chatbots/?sh=7282d67e4f6c [5] https://www.forbes.com/sites/forbesagencycouncil/2021/05/06/the-future-of-ecommerce-is-here-and-its-all-about-chatbots/?sh=7282d67e4f6c
- The growing use of chatbot technology in e-commerce is reflected in the predictions that AI-driven chatbots will become the primary customer service channel for about a fourth of businesses by 2027.
- In the e-commerce market, the integration of AI technology is expected to significantly grow, with estimated sales reaching $142 billion through virtual assistants in 2025.
- Editorial pieces highlight the impact of AI-powered chatbots on the shopping experience, claiming that they increase purchase conversion rates almost fourfold.
- As the e-commerce landscape evolves, the role of technology, particularly artificial intelligence, in shaping future shopping experiences will continue to increase, with companies like Meta and Snap experimenting with chatbot technologies.
