Perplexity AI announces free product to streamline online shopping

Perplexity AI has made a significant announcement, revealing that it will introduce a complimentary shopping assistant tailored for U.S. consumers next week. This launch is strategically timed as shoppers gear up for the holiday season. Dmitry Shevelenko, the company's chief business officer, shared insights in an interview with CNBC, emphasizing that many consumers prefer to conduct their own research while seeking a more streamlined and simplified shopping experience. In a notable move, Perplexity AI has teamed up with PayPal to facilitate direct purchases from over 5,000 merchants through its search engine. This new offering follows the earlier release of 'Buy With Pro' for paid subscribers, which debuted last year. The upcoming free product is designed to better interpret shopping intent and provide personalized results, utilizing data from users' past searches. While Perplexity has chosen not to disclose whether it will generate revenue from transactions on its platform, the competitive landscape is heating up. OpenAI recently introduced a similar feature called Instant Checkout, which allows ChatGPT users to make purchases directly from merchants without leaving the chat interface. OpenAI has confirmed that it will charge a fee for these transactions. Among OpenAI's initial partners for Instant Checkout are Etsy and Shopify, with a recent agreement with PayPal enhancing the integration. Starting next year, PayPal users will be able to buy items directly, and PayPal merchants will have the opportunity to sell through ChatGPT. Michelle Gill, who oversees PayPal's agentic strategy, highlighted the company's ongoing efforts to build infrastructure and protections as AI transforms commerce. This includes ensuring that both consumers and merchants remain connected to PayPal across new platforms like Perplexity. As part of the agentic shopping product, PayPal merchants will manage purchases, customer service, and returns directly. Previously, Perplexity acted as an intermediary for transactions. Gill also noted that PayPal's buyer protection policies will extend to transactions made through Perplexity, offering users reimbursement in case of order issues. With the holiday shopping season approaching, Gill expressed excitement about the launch, anticipating a natural surge in consumer engagement. This innovative tool aims to revolutionize the online shopping experience, making it not just easier, but also more personalized for users during one of the busiest shopping times of the year.