The $124B Smart Glass Disruptor

This Nasdaq-listed company is redefining the $124 billion smart glass market. From aircraft cabin shading systems to dimmable rooftops in vehicles to energy-efficient building glass, their technology supports global leaders like Boeing, Ferrari, and National Geographic. Their $38.3 million order backlog and several new multi-million dollar deals across four major sectors positions them as a market disruptor you can't ignore.

Can AI chatbots make your holiday shopping easier?

HALELUYA HADERO
December 02, 2024

Tired of thinking about what gifts to get everyone this year? Artificial intelligence chatbots might help, but don't expect them to do all the work or always give you the right answers.

Anyone scouring the internet for Cyber Monday deals is likely going to encounter more conversational iterations of the chatbots that some retailers and e-commerce sites have built to provide shoppers with enhanced customer service.

Some companies have integrated models infused with newer generative AI technologies, allowing shoppers to seek advice by asking naturally phrased questions like "What's the best wireless speaker?"

Retailers hope consumers use these chatbots, which are typically called shopping assistants - as virtual companions that help them discover or compare products. Prior chatbots were mostly used for task-oriented functions such as helping customers track down online orders or return ones that didn't meet expectations.

Amazon, the king of online retail, has said its customers have been questioning Rufus - the generative AI- powered shopping assistant it launched this year - for information such as whether a specific coffee maker is easy to clean, or what recommendations it has for a lawn game for a child's birthday party.

And Rufus, which is available for holiday shoppers in the U.S. and some other countries, is not the only shopping assistant out there. A select number of Walmart shoppers will have access this year to a similar chatbot the nation's largest retailer is testing in a few product categories, including toys and electronics.

Perplexity AI added something new to the AI chat-shopping world last month by rolling out a feature on its AI-powered search engine that enables users to ask a question like "What's the best women's leather boots?" and then receive specific product results that the San Francisco-based company says are not sponsored.

"It has been adopted at pretty incredible scale," Mike Mallazzo, an analyst and writer at retail research media company Future Commerce, said.

Retailers with websites and e-commerce companies started paying more attention to chatbots when use of ChatGPT, an artificial intelligence text chatbot made by the company OpenAI, went mainstream in late 2022, sparking public and business interest in the generative AI technology that powers the tool.

Victoria's Secret, IKEA, Instacart and the Canadian retailer Ssense are among other companies experimenting with chatbots, some of which use technology from OpenAI.

Even before the improved chatbots, online retailers were creating product recommendations based on a customer's prior purchases or search history. Amazon was at the forefront of having recommendations on its platform, so Rufus' ability to provide some is not particularly groundbreaking.

But Rajiv Mehta, the vice president of search and conversational shopping at Amazon, said the company is able to offer more helpful recommendations now by programming Rufus to ask clarifying or follow-up questions. Customers are also using Rufus to look for deals, some of which are personalized, Mehta said.

To be sure, chatbots are prone to hallucinations, so Rufus and most of the tools like it can get things wrong.

Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse, wrote in a November blog post that his firm tested Rufus by requesting gaming TV recommendations. The chatbot's response included products that were not TVs. When asked for the least expensive options, Rufus came back with suggestions that weren't the cheapest, Kaziukenas said.

An Associated Press reporter recently asked Rufus to give some gift recommendations for a brother. The chatbot quickly spit out a few ideas for "thoughtful gifts," ranging from a T-shirt and a keychain with charms to a bolder suggestion: a multifunctional knife engraved with the phrase "BEST BROTHER EVER."

After a 5-minute written conversation, Rufus offered more tailored suggestions - a few Barcelona soccer jerseys sold by third-party sellers. But it wasn't able to say which seller offered the lowest price. When asked during another search for a price comparison on a popular skin serum, Rufus showed the product's pre-discounted price instead of its present one.

"Rufus is constantly learning," Amazon's Mehta said during an interview.

Shop AI, a chatbot that Canadian e-commerce company Shopify launched last year, can also help shoppers discover new products by asking its own questions, such as soliciting details about an intended gift recipient or features the buyer wants to avoid. Shop AI has trouble, however, recommending specific products or identifying the lowest-priced item in a product category.

The limitations show the technology is still in its infancy and has a long way to go before it becomes as useful as the retail industry - and many shoppers - wish it could be.

To truly transform the shopping experience, shopping assistants will "need to be deeply personalized" and be able - on their own - to remember a customer's order history, product preferences and purchasing habits, consulting giant McKinsey & Company said in an August report. the McKinsey report said.

Amazon has noted that Rufus' answers are based on information contained in product listings, community Q&As and customer reviews, which would include the fake reviews that are used to boost or diminish sales for products on its marketplace.

The large language model that powers the chatbot was also trained on the company's entire catalog and some public information on the web, Trishul Chilimbi, an Amazon vice president who oversees AI research, wrote in the electrical engineering magazine IEEE Spectrum in October.

But its unclear how Amazon and other companies are weighting different training components - such as reviews - in their recommendations, or how exactly the shopping assistants come up with them, according to Nicole Greene, an analyst at management consulting firm Gartner.

Perplexity AI's new shopping feature allows users to enter search queries such as "best phone case" and to receive answers derived from various sources, including Amazon and other retailers, such as Best Buy. Perplexity also invited retailers to share data about their products and said those that do would have an increased chance of having their items recommended to shoppers.

But Perplexity CEO Aravind Srinivas, suggested in a recent interview with Fortune magazine that he didn't know how the new shopping feature recommended products to customers. But in an interview with the AP, Chief Business Officer Dmitry Shevelenko pushed back on that characterization, saying Srinivas' comment "was probably taken out of context."

The context, he said, is that with generative AI technology "You can't know in advance exactly what the output will be just based off of knowing what the inputs" are from the training materials.

Shevelenko said retailers and brands need to know they can't have their products recommended in Perplexity's search engine because they're "jamming key words" into their websites or using different techniques to show up better on search results

"The way you show up in an answer is by having a better product and better features," he said.

Continue Reading...

Popular

Capital One sued by US watchdog alleging bank cheated customers out of $2 billion

NEW YORK (AP) — A U.S. watchdog is suing Capital One for allegedly misleading consumers about its offerings for high-interest savings accounts — and “cheating" customers out of more than $2 billion in lost interest payments as a result.

How Biden's domestic policy record stacks up against public perception

WASHINGTON (AP) — President ends his term with a gulf between his policy record and his public reputation.

Our No. 1 Way to Profit From Crypto Boom (Under $1) - Ad

Many of the world's best and richest investors are piling their money into the same trade: Bitcoin. Including legendary hedge-fund manager Paul Tudor Jones, entrepreneur Elon Musk, and venture capitalist Tim Draper. But that pales in comparison to another huge investor (worth more than all the world's billionaires combined) we believe is about to start piling into Bitcoin next. Click here for the full story.

ChargePoint Outpaces Tesla In EV Network Market Share, But JPMorgan Stays Cautious

ChargePoint dominates U.S. EV charging market with 32% share and 70,000+ ports, but faces challenges with sluggish subsidies and high capex. JPMorgan remains cautious.

What's In Store For Comcast In Q4?

Goldman Sachs analyst forecasts in-line Q4 results for Comcast, with minimal growth in 2025, but anticipates improved investor sentiment in 2025 and beyond.

The High Roller of iGaming Stocks - Ad

Targeting high-margin players with 60% revenue growth and cutting-edge technology, this stock is a standout in iGaming. Opportunities like this are rare--Get the symbol here the crowd catches on.

China's electric car sales grow in 2024, as sales of gasoline cars plunge

BEIJING (AP) — Sales of all types of electric vehicles rose more than 40% in China last year, while those of gasoline-powered automobiles plunged, industry data showed Monday.

Bitcoin Hits $106K: Trump's Next Move Could Trigger $200K - Ad

This rally is no accident -- it's part of Trump's bold vision to make America the "Bitcoin Superpower." Central to Trump's plan is the creation of a National Bitcoin Reserve -- a move that could make the U.S. one of the largest Bitcoin buyers in history, creating massive upward pressure on Bitcoin's price.

Biden's administration proposes new rules on exporting AI chips, provoking an industry pushback

WASHINGTON (AP) — The Biden administration is proposing a new framework for the exporting of the used to develop , an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

Analyst Warns of Bitcoin's Uncertain Future Amid Key Support Breakdown: 'It Could Get Ugly'

A prominent cryptocurrency analyst has raised concerns about Bitcoin‘s (CRYPTO: BTC) potential downfall if it fails to maintain a significant support level.

Is Bill Gates Missing the Big Picture? - Ad

Bill Gates calls it: "The most transformative technology any of us will see in our lifetimes." Eric Fry agrees, saying it's far more advanced than anything today... including AI. But he also warns it could send millions of Americans into poverty.

Michael Burry's Hedge Fund Could Soar if China Cuts Interest Rates in 2025

Michael Burry's $196 million hedge fund, Scion Asset Management, could see hefty gains if the People's Bank of China cuts interest rates in 2025, which it has suggested it is likely to do. 

eVTOL Market Soars Too High? Analyst Gives Archer, Joby Downgrades

JPMorgan downgrades Archer and Joby Aviation stocks, noting they have surged past what fundamentals justify due to market enthusiasm and regulatory challenges.

ONE AI Stock Is All You Need - Ad

There are over 6,000 stocks listed in the market right now. And even with many of them jumping on the AI bandwagon... They will NOT make you rich. However, there is one stock that stands head and shoulders above everything else. It's currently trading for only $20...

Trump vs. Newsom: Wildfire War Escalates as California Faces Destruction

As California grapples with devastating wildfires, tensions between Gov. Newsom and President-elect Trump have reached new heights.

AI-Powered Cameras + Smart Glass = A Potential Nasdaq Sleeper - Ad

This recent Nasdaq IPO is quietly making waves in two massive markets: AI-powered Advanced Driver Assistance Systems (ADAS) and smart glass technology and this company is poised for substantial growth in the two multi-billion-dollar markets.

California's $10 Trillion Property Market Faces Unprecedented Threat From Wildfires

California's $10 trillion residential property market is under siege as wildfires wreak havoc across the southern part of the state.

Kohl's to close 27 stores by April as struggling retailer looks to improve profits, sales

NEW YORK (AP) — Kohl’s said Friday it was closing 27 underperforming stores in 15 states by April — a fraction of its 1,150 store base — as the struggling department store aims to boost profitability and improve sagging sales.

Get Your Financial Strategy in Place for 2025 - Ad

There's still time to make smart financial moves as we enter a new year. Work with Datalign Advisory, a trusted partner who can help you optimize your plans and start 2025 on the right foot.

Bitcoin's Supercycle, Crypto's Capitol Breakthrough, And More: This Week In Crypto

The past week was a rollercoaster for the cryptocurrency world. From predictions of a Bitcoin (CRYPTO: BTC) supercycle to a groundbreaking Senate subcommittee on digital assets, the crypto landscape is buzzing with activity.

98 Opportunities for 1,000% Gains (And More) - Ad

During the most recent gold bull market, our team tracked down 98 separate opportunities for investors to make 10x their money or more. In fact, there are seven specific gold plays that we believe should be on every investor's radar right now.

Walmart says customers should discard recalled chicken broth

NEW YORK (AP) — Walmart says customers should throw out a chicken broth product that was sold at stores in mostly Southern states late last year.

Thailand's Cabinet approves a draft bill to legalize casinos to boost tourism and economy

BANGKOK (AP) — Cabinet approved on Monday a draft bill legalizing casinos with the aim of boosting tourism and a sluggish economy

The IPO Turning Heads - Ad

A groundbreaking IPO has hit the NYSE-A, targeting a $60B market. This company's mission to produce up to 2.4 million tons of potash annually could supply 20% of Brazil's current potash needs. It's a rare chance to explore this IPO opportunity while it's still fresh.

$125 Million Home of Luminar CEO Gutted in LA Wildfires After Week of Gains for Company

The most expensive home in California's Pacific Palisades, owned by Luminar Technologies CEO Austin Russell, has been ravaged by the ongoing Los Angeles wildfires.

The No. 1 Stock for Trump's Second Term? - Ad

Legendary investor Louis Navellier's stock rating system gave a buy rating to ALL of the top 30 performing stocks in the S&P 500 index of Trump's first term... ALL of them! His system is now rating these stocks as a "BUY" for Trump's second term.

Shiba Inu Burns Skyrocket by 300% Amid Calls for Larger Burns From SHIB Army

The Shiba Inu (CRYPTO: SHIB) community has witnessed a 300% surge in token burns within the last 24 hours.

AP PHOTOS: Warm clothing, hot pot and even ice cream bars feature at China's Harbin ice fair

HARBIN, China (AP) — Faced with temperatures dipping to -30 Celsius (-22 Fahrenheit), visitors to often make a beeline for stalls selling padded clothing to augment their wardrobes.

Exposed: 3 Cent Crypto to Explode January 20th? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on January 20th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Jimmy Carter's Funeral: 5 Living Presidents Attend; Family, Colleagues Share Warm, Humorous Stories

Jimmy Carter's state funeral united five living U.S. presidents, including Trump and Obama. Carter was remembered as a peace-seeking leader.

Wall Street's Bonus Frenzy: Top Investment Bankers Eye Double-Digit Pay Boosts As Markets Flourish

Wall Street gearing up for generous bonuses, with top traders and bankers set to see 10%+ increases due to robust revenues. Record decade of bonuses expected to continue thanks to strong trading.

270x More Lucrative Than NVIDIA? - Ad

If you've missed out on NVIDIA's recent 1,600% run... Don't worry. Because there's one AI stock that could be a lot more lucrative. It's currently trading for only $20.

Macy's Shuts Down 66 Locations As Part Of New Chapter Strategy

Macy's revealed plans to close 66 stores as part of its "Bold New Chapter" strategy. The company aims to eliminate underperforming locations and focus on its successful stores.

"Boring Trade" Generates $185 Every Day. Like Clockwork. - Ad

Forget cryptos, pot stocks, and other "shiny object" investments. Instead, you could collect an average of $185 every day of the year with this "boring" trade strategy Forbes magazine says is "like finding money in the street."

Walgreens Boots Alliance, Aurora Innovation And Delta Air Lines Are Among Top Large Cap Gainers Last Week (Jan 6-10): Are The Others In Your Portfolio?

Top performers in last week's stock market: Walgreens, Constellation Energy, FTAI Aviation, TD SYNNEX, Aurora Innovation, Royalty Pharma, Micron, Delta Air Lines, Intra-Cellular Therapies, United Airlines.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service