In Silicon Valley, the entry of OpenAI and Perplexity into e-commerce with AI shopping assistants is reshaping online transactions, raising questions about the future of specialized AI shopping startups. While these giants aim to streamline the sales funnel through features like “Buy with Pro,” specialized startups argue that the nuanced, subjective nature of shopping—especially in fashion and home décor—cannot be captured by generalist models. Industry insiders emphasize that while generalist Large Language Models (LLMs) excel at direct queries, they struggle with discovery-driven purchases that rely on visual cues. Startups like Daydream focus on proprietary visual datasets, enhancing user experience. The shift from traditional SEO to Generative Engine Optimization (GEO) creates a need for brands to optimize for LLM context. Ultimately, as competition heats up, specialized AIs position themselves as reliable, curated alternatives against the backdrop of larger players like Amazon, emphasizing the emotional journey of shopping.
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