Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
Games & Commerce
Generative artificial intelligence (AI) chat windows are emerging as a new shopping battleground following search portals and open markets. Companies are increasingly highlighting conversational commerce within AI, spanning product search, recommendations and purchase links, as a new channel to drive traffic to their own online stores.
Lotte Wellfood recently launched a dedicated app on “Apps in ChatGPT.” Apps in ChatGPT is a service that lets users call and run dedicated external apps inside ChatGPT. When the Lotte Wellfood app is called, users can ask questions about Lotte Wellfood in the ChatGPT chat window and receive answers.
AI commerce emerges as new traffic channel
Lotte Wellfood placed significance on being the first among South Korean comprehensive food companies to implement the service as a dedicated app based on ChatGPT. As generative AI-based shopping and discovery begin in South Korea centered on fashion, beauty and platform industries, experiments aimed at driving traffic to company-owned stores and expanding customer touchpoints are now accelerating in the food sector, the article said.
The industry is watching the potential for generative AI chat windows to emerge as a new alternative that complements existing search portal functions. As the spread of generative AI broadens information discovery from search engines and portals to AI-based conversational search, the shift could become more pronounced in the online commerce market, where information searches such as price comparisons and product discovery account for a large share, according to an analysis. AI search allows exploration tailored to a user’s situation, preferences and purchase purpose, offering an advantage that differentiates it from traditional search.
E-commerce platform Cafe24 also launched an Apps in ChatGPT app in February for companies using its solutions. Cafe24 connects multiple solution partner companies, rather than a single brand, to one dedicated app. The company launched the app, expecting online store operators to secure a new traffic channel beyond search advertising and open markets.
A Cafe24 official said, “Just as we supported customers by linking diverse platforms at home and abroad, we find it meaningful that we can now build global infrastructure in an AI environment as well.”
Purchases on brand sites; expectations for more traffic and data
In particular, the industry is focusing on the fact that the ChatGPT chat window provides purchase links that connect to company-owned online stores after product recommendations and information searches. Commerce companies can increase traffic to their own stores and secure data such as purchase histories and reviews when customers search on ChatGPT and complete purchases on brand sites. For companies with their own online stores, it effectively creates a new top-of-funnel channel to bring in customers.
As a result, attempts by South Korea’s distribution industry to drive traffic to company-owned stores using generative AI such as ChatGPT are expected to increase further. Apps in ChatGPT could originally be used in two ways: through “Instant Checkout,” a direct payment method within ChatGPT, or by linking to a brand’s purchase page. But OpenAI, the developer of ChatGPT, decided last month to halt Instant Checkout, citing that direct payment conversions fell short of expectations, leading to an analysis that the brand-site-linked model is more likely to expand going forward.
In South Korea, beyond Lotte Wellfood and Cafe24, cases of service integration based on ChatGPT are increasing. Amorepacific has launched an Apps in ChatGPT dedicated app for “Amore Mall,” while Yogiyo has launched one for its delivery service.
Kakao’s “Kakao for ChatGPT” is also a case of expanding AI chat windows into a shopping and discovery touchpoint. Last month, Kakao expanded the range of services in “Kakao Tools” within Kakao for ChatGPT to include partners such as Hyundai Department Store, Olive Young, Musinsa, MyRealTrip and Saramin. Kakao plans to expand its partners for Kakao for ChatGPT into various fields by the end of the year.
Moves by Lotte affiliates are also drawing attention. In addition to Lotte Wellfood, some Lotte Group affiliates such as Chilseong Mall, Lotte World Adventure and Lotte Cinema have launched Apps in ChatGPT apps, widening touchpoints based on generative AI. A Lotte Wellfood official said, “If AI commerce expands in South Korea, we are leaving open the possibility of moving into other platforms as well, and we plan to proceed in line with how the initial expansion develops.”
Still, in South Korea the market remains at an early stage, and meaningful figures that could show increases in traffic to company-owned stores or purchase conversion effects have yet to accumulate.
An industry official said, “In introducing generative AI commerce, companies generally prefer a model where purchases are made by linking to their own online stores.” The official added, “If such brand-site-linked purchase data accumulates, other distribution companies, including in food, fashion and beauty, will also follow with their entry.”
This content was produced with the assistance of AI and reviewed by our editorial team. You can read the original version in Korean here.
