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Loblaw Cos. Ltd. is integrating its grocery delivery app into OpenAI's chatbot ChatGPT, the grocer announced on Thursday.
The partnership means consumers can explore menu ideas and curate a list of ingredients in the chatbot, and then buy the suggested products on Loblaw's PC Express app, the company said.
"Conversational AI is becoming a new interface layer for how people plan and search and make decisions," said Loblaw chief digital officer Lauren Steinberg in an interview.
Canadians are already using tools like ChatGPT to answer everyday questions such as what to make for dinner, how to make a high-protein meal plan or how to prep for a birthday party, she said.
"We're kind of going where customers are," Steinberg said.
A query to the chatbot looking for an easy meal idea, for example, can generate a recipe with a list of required ingredients, she explained. Users can input their postal code and ChatGPT will find Loblaw banners nearby. Selecting a store pulls the list of ingredients available at that location. Customers can select items for purchase and when they click checkout, the PC Express app opens for them to pay for the items. You can also opt to pay on the store website.
Deciding what's for dinner at the end of the day remains a pain point for many people, said Jo-Ann McArthur, president of Nourish Food Marketing.
"Helping consumers there can really build some loyalty," she said.
McArthur called Loblaw's chatbot integration "the most consumer-friendly" and a less intimidating introduction to a conversational grocery shopping experience.
An average consumer may not be as comfortable with the chatbot yet and this provides "a low lift" to shoppers, she said.
Loblaw started working on the app integration last fall, soon after ChatGPT parent company OpenAI announced it was introducing third-party apps on the chatbot.
"The moment we found out that ChatGPT was going to allow apps, we built ours," Steinberg said.
Companies such as Spotify, Canva, Expedia and Coursera are already integrated on the chatbot, OpenAI's website shows.
McArthur said the integration isn't as disruptive yet.
She compared it with retail giant Walmart's AI shopping assistant, Sparky, which isn't yet available in Canada but is more advanced than a ChatGPT plug-in.
"Loblaw is building this ecosystem basically on rented ground," McArthur said.
She said integrating health and food could be a "powerful next step" for the grocer and "give them a competitive moat," especially if Walmart launches Sparky in Canada.
Steinberg said the grocer is working to integrate AI in its own apps, PC Optimum and PC Express.
"You can expect to see equally rich conversational tools that translate recipes into shopping lists and meal plans into inspiration … soon enough," she said.
Loblaw also launched ChatGPT Enterprise for its corporate employees, which allows them access to AI tools for analyzing data, video and image platforms as well as Codex for engineers and programming.
The company already uses OpenAI models for store owners and managers, as well as in its supply chains.
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