Retailers are starting to face the problem behind the hype around AI shopping. As customers increasingly rely on chatbots and automated assistants to decide what to buy, retailers risk losing control over how their products are displayed, sold, and bundled.
This concern is prompting some large chains to build or support their own AI-powered shopping tools, rather than relying solely on third-party platforms. The goal is not to chase novelty, but to stay close to the customer as purchasing decisions move toward automation.
Several retailers, including Lowe’s, Kroger, and Papa Johns, are experimenting with AI agents that help shoppers search for products, get help, and place orders. Many of these efforts are powered by tools from Google, giving retailers a way to place agents within their apps and websites rather than sending customers elsewhere.
Stay in control as shopping moves to automation
For grocers like Kroger, the concern isn’t whether AI will impact shopping, but how quickly. The company is testing an AI shopping agent that can compare products, process purchases, and tailor recommendations based on customers’ habits and needs.
“Things are moving at a pace that probably creates a competitive barrier or disadvantage if you’re not already deep into[AI agents],” said Yael Cossette, Kroger’s chief digital officer and executive vice president.
The agent, located within Kroger’s mobile app, can take into account factors such as time restrictions and meal plans, while also leveraging data the retailer already has, such as price sensitivity and brand preferences. The goal is to keep these decisions within Kroger’s own systems rather than handing them over to an external platform.
This approach reflects broader tensions in the retail industry. Making products available directly within large-scale AI chatbots can expand your reach, but it can also reduce customer loyalty, reduce add-on sales, and reduce advertising revenue. When a third party controls the interface, retailers have less say in how they configure their choices.
This is one reason why some retailers are wary of selling directly through tools built by companies like OpenAI and Microsoft. Both companies have rolled out features that allow users to complete purchases within chatbots, and Walmart announced last year that it was working with OpenAI to allow customers to purchase items through ChatGPT.
For retailers, the appeal of running their own agency is control. “There is a market shift happening across retailers that are investing in their own capabilities rather than just relying on third parties,” said Lauren Wiener, global leader of marketing and customer growth at Boston Consulting Group.
Why retailers are spreading risk across vendors
Still, building and maintaining these systems is not easy. The underlying model changes quickly, so a tool that works today may need rework in a few weeks. This reality is shaping the way retailers think about vendors.
At Lowe’s, a Google shopping agent sits behind the retailer’s own virtual assistant, Mylow. The company says that when customers use Mylow online, conversion rates more than double. But Lowe’s doesn’t rely on a single provider.
“The technology we build can be obsolete in two weeks,” said Seemantini Godbole, chief digital information officer at Lowe. This pace is one reason why Lowe’s is working with multiple vendors, including OpenAI, rather than betting on one system.
Kroger is taking a similar approach. Alongside Google, we work with companies like Instacart to support agent strategies. “(AI agents) are not just a top priority, they’re a priority for us,” Cossette said. “It’s moving at an amazing pace.”
Test your AI agent without overcommitting
For others, the challenge is not keeping up with technology, but deciding how much to build in the first place. Papa Johns does not create its own AI models or agents. Instead, it’s testing Google’s food ordering agent, which handles tasks such as estimating the number of pizzas a group needs based on photos uploaded by customers.
Customers will have access to agents over the phone, on the company’s website, and through the app. “I don’t want to be an AI expert when it comes to building agents,” says Kevin Basconi, chief digital and technology officer at Papa John’s. “I want to become an expert in AI in terms of ‘how do we use agents?'”
The focus on use rather than ownership reflects a pragmatic view of where AI fits in today. Although agent-based shopping is gaining traction, it is still not the mainstream way to purchase everyday items.
“I don’t think[AI agents]will completely change the industry,” Basconi said. “Even in this day and age, people still call stores on the phone to order pizza.”
Analysts see Google’s tools less as a finished answer and more as a way to lower barriers for retailers who don’t want to start from scratch. “The real challenge here is the application of technology,” says Gartner technology analyst Ed Anderson. “These announcements are a step forward so retailers don’t have to start from scratch.”
For now, retailers are testing out different vendors, mixing it up and holding back on commitments. Kroger, Lowe’s and Papa John’s have not released detailed test results. This wariness suggests that many people are still trying to figure out how much control they’re willing to give up and how much control they can keep as shopping gradually moves toward automation.
(Photo provided by Heidi Finn)
See also: Grab brings robots in-house to control delivery costs
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