SAN FRANCISCO (AP) — In a significant step towards integrating artificial intelligence into everyday shopping, Visa announced on Wednesday that it has incorporated its payment network into ChatGPT. This development enables the AI chatbot to independently shop for groceries, plane tickets, or various products on behalf of users, facilitating transactions at any merchant that accepts Visa. Previously, Visa's technology was limited to a single retailer or a small group of participating vendors.
This collaboration represents a shift from OpenAI's earlier attempts at e-commerce. Last year, OpenAI introduced Instant Checkout, a feature that let ChatGPT search for specific items like a digital personal shopper. However, this service faced issues with errors and low adoption rates among merchants due to OpenAI's fee structure, which led to its retirement in March of this year.
With this new integration, users can link their Visa cards to ChatGPT, allowing the chatbot to not only recommend products but also execute purchases directly. Visa, as the world's largest payment network outside of China, will provide the necessary payment authorization and fraud monitoring to ensure these transactions occur smoothly.
During a company event in San Francisco, Jack Forestell, Visa's chief product and strategy officer, illustrated the capabilities of ChatGPT as a personal shopper. For instance, a customer could ask the AI for a pair of wireless headphones under $150, and the chatbot would search for suitable options and complete the purchase on behalf of the customer.
Forestell emphasized that while many consumers are comfortable with AI recommendations, the transition to allowing AI agents to make purchases requires a higher level of trust. He noted that building this trust will depend on robust infrastructure and security measures integrated into the transaction process.
Details surrounding the financial terms of the collaboration between Visa and OpenAI have not been disclosed, and it remains unclear what fees merchants or customers might incur. For context, the now-retired Instant Checkout service charged merchants a 4% fee on each transaction, which many found to be excessive.
The introduction of AI agents in the shopping process raises potential risks, including overspending by customers, incorrect purchases, or disputes over unauthorized transactions. To mitigate these concerns, Visa plans to implement guardrails, such as spending limits, necessary approval steps, and a list of approved merchants for AI shopping activities. Forestell stated that Visa would handle disputes utilizing the same standards as any standard transaction, focusing on consumer intent and proper merchant processing.
AI-powered shopping assistants are not new, with retailers like Amazon launching features through platforms like Alexa, which is limited to shopping on Amazon. Similarly, OpenAI's earlier Instant Checkout feature was restricted to select merchants. In contrast, Visa's approach will broaden the scope of AI shopping capabilities.
Visa faces competition from Mastercard, which is also developing AI shopping features within its payment network, albeit on a smaller scale. Mastercard's initiatives allow AI agents to procure services for businesses, like managing advertising campaigns for coffee shops by purchasing necessary services from web and advertising providers.
Forestell acknowledged that it will take time for consumers to trust AI agents with their shopping. Initially, Visa anticipates a majority of transactions will still require human confirmation, with AI agents sending notifications for consumer approval on purchases. As users become more familiar with the process, there may come a time when they grant their AI agents the authority to execute transactions autonomously.
