The news: Google rolled out Shop with AI Mode, an agentic AI feature that tracks prices, promotes products and shopping advice, and facilitates payments exclusively through Google Pay.
Recent AI commerce rollouts:
Value add? Shop with AI Mode can help boost Google Pay’s payment volume by making the shopping experience as seamless and convenient for the shopper as possible.
Keeping customers within its own payment ecosystem helps Google maximize its profit per purchase. AI also increases the likelihood of a shopper’s dependence on the service, with long-term, repeated use.
Our take: We’ve cautioned before about generational divides on trusting AI. Google is trying to establish new shopping routines among digitally native shoppers like Gen Zers and Gen Alphas.
While Boomers hold the lion’s share of wealth, a generational wealth transfer is in progress, which means younger generations’ opinions on how to transact will become centerpiece to these companies’ bottom lines.
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