Klarna introduces ChatGPT plugin for AI-assisted shopping
Klarna, the popular "buy now, pay later" fintech service, has introduced an intriguing new plugin that integrates the viral conversational AI ChatGPT into its shopping experience. This plugin allows Klarna‘s 27 million users to get AI-generated personalized product recommendations, shopping advice, price comparisons and more right within the Klarna app.
ChatGPT‘s meteoric rise as a digital assistant
ChatGPT burst onto the scene in late 2022 and rapidly captured the public‘s imagination with its ability to hold remarkably human-like text conversations. After launching publicly on November 30th, ChatGPT amassed over 1 million users in less than a week – making it the fastest growing consumer application in history.
By the end of January 2023, ChatGPT exceeded 100 million monthly active users according to developer Anthropic. This hypergrowth shows no signs of slowing down, as people continue to find novel uses for the AI chatbot as a research tool, writing assistant, programming aide, and more.
How Klarna‘s ingenious plugin works
The Klarna ChatGPT plugin is currently available in the ChatGPT Plus plugin store for subscribers in the US and Canada. Once installed, users can simply ask the chatbot questions about potential purchases, and receive tailored recommendations sourced from Klarna‘s extensive merchant network.
For example, you could say “I’m looking for a new computer under $1000. What laptops do you recommend?” After thinking for a moment, ChatGPT would draw on Klarna’s up-to-date product listings and suggest specific laptop models that meet your criteria along with some pros/cons for each option.
If you want to learn more, you can click through any model name in the chat to view the full product page on Klarna’s site. This page includes Klarna’s price comparison tool, allowing you to instantly see how the laptop‘s price stacks up across over 500,000 merchant partners – ensuring you get the best deal.
The transformative power of AI-driven shopping
The key benefit this plugin provides is highly personalized and relevant shopping recommendations powered by AI. Rather than generic suggestions, ChatGPT can take your specific budget, feature needs, taste preferences, usage context and other unique factors into account when suggesting products.
Early user feedback indicates this tailored approach is working wonderfully. Sara R. said "I was surprised how spot on the recommendations were for my taste and needs – it‘s like having a personal shopper in my pocket!"
For retailers, AI-driven product suggestions can result in substantially higher conversion rates and sales, as the recommendations resonate much more than generic ads. By better matching products to each user, both consumers and companies win.
ChatGPT‘s limitations – for now
ChatGPT is still an AI system in development, so its recommendations aren‘t perfect. It can occasionally provide odd or inaccurate responses that require clarification. And its product knowledge is currently limited to merchants within Klarna‘s network.
Some consumers have also voiced privacy concerns around the data collection required for AI to provide personalized suggestions. Klarna has stated they anonymize all data and do not share it externally without consent.
What‘s next for AI in shopping?
This plugin represents just the beginning of AI in e-commerce. Looking ahead, we should expect to see shopper-assistant chatbots rolled out more broadly across major retailers. Integrations with virtual reality could also enable visually rich AI recommendations.
Excitingly, the tech continues to improve each day. As Klarna gathers more conversational data and feedback, ChatGPT‘s product suggestions will become more conversational, contextual and helpful for shoppers.
While AI commerce remains in its early days, the possibilities appear endless. As consumers become increasingly comfortable turning to AI for advice, chatbot-powered shopping seems poised to revolutionize how we discover, evaluate and purchase products online. Klarna‘s ingenious plugin provides a small glimpse into this transformative future.
