As people get comfortable using AI-powered shopping assistants to buy things on their behalf, the industry’s next order of business is figuring out how advertising fits into this new shopping experience. Recently, OpenAI said that soon it will begin testing ads within ChatGPT. Initially, ads will appear below ChatGPT’s answers when a relevant sponsored product or service matches the conversation, and will be clearly labeled to stand out from a regular response. OpenAI is borrowing from Amazon’s playbook which also started out by selling pay-per-click sponsored ads back in 2012. Meanwhile, Amazon recently released a new interface that lets AI agents communicate with Amazon’s ad systems. Amazon’s new Model Context Protocol server lets AI agents like Claude and ChatGPT translate plain-English requests directly into Amazon’s ad console, making things like managing campaigns and handling accounts agent-led. These moves will push regular digital advertising on retail sites out of the spotlight, which means ads of the future will sit within retailers’ tech stacks or ad consoles and become part of the agentic conversation or agentic browsing experience, experts told Retail Brew. AI will show items based on clean product data, accurate pricing, real-time inventory, customer ratings, and brand trust signals. So, the best ad may just be a five-star review and a SKU that actually exists. Keep reading here.—VC |