The video explores the rise of generative AI in online shopping, focusing on the AI chatbot Nibble, which helps customers negotiate discounts in a more engaging and interactive manner. Through a personal experience, it highlights how such technology can enhance the shopping experience, increase sales for retailers, and potentially revolutionize the retail landscape.
The video discusses the growing prevalence of generative AI in online shopping, highlighting a recent McKenzie survey that indicates 65% of companies are now using this technology regularly, a significant increase from just ten months prior. The marketing and sales sectors have seen the most substantial adoption, with generative AI enabling personalized shopping experiences, including customized discounts. The host shares a personal experience of negotiating a price for a memory foam mattress through an AI chatbot named Nibble, showcasing how the chatbot interacts with customers to facilitate haggling.
During the negotiation, the chatbot initially offers a discount from the original price of $650 to $625, but the host continues to push for a lower price. The chatbot employs humor and behavioral science principles to guide the negotiation process, ultimately leading to a successful deal at $515, representing a 21% discount. This interaction illustrates how AI can enhance the shopping experience by making it more engaging and interactive for consumers.
Rosy Bailey, the co-founder and CEO of Nibble, explains that retailers set parameters for the chatbot to ensure it doesn’t offer discounts that are too steep, balancing customer satisfaction with profit margins. The chatbot’s negotiation tactics are informed by behavioral science and algorithms, which help it determine the best offers to present to customers. Bailey also notes that many clients using this technology have reported significant increases in sales, with some seeing uplifts of over 20% and even up to 125%.
The discussion also touches on the gamification aspect of shopping experiences, with the host noting that the engaging nature of the chatbot encourages users to interact more deeply with the purchasing process. This contrasts with traditional chatbots, which can often be frustrating to use. The conversational and humorous elements of Nibble make it more appealing, potentially leading to increased customer loyalty and repeat purchases.
Finally, the video raises questions about the future of shopping technology and whether platforms like Nibble could evolve into a new way of shopping, similar to the success of apps like Temu. The conversation hints at the possibility of consumers using advanced AI tools to negotiate better deals, and the potential for AI to revolutionize the retail landscape by making the shopping experience more interactive and enjoyable. Rosie Bailey, co-founder and CEO of Nibble, joins CNBC’s Deidre Bosa on ‘The Exchange’ to discuss the chatbot start up, the rise of AI in online shopping, and more.