عربي English Türkçe اردو فارسى
Logo
Latest News
Technology

As AI Reshapes Shopping, US Retailers Try to Change How They’re Seen Online 

The Amazon logo is seen in this illustration created on February 11, 2025. (Reuters)
The Amazon logo is seen in this illustration created on February 11, 2025. (Reuters)
TT
TT

As AI Reshapes Shopping, US Retailers Try to Change How They’re Seen Online 

The Amazon logo is seen in this illustration created on February 11, 2025. (Reuters)
The Amazon logo is seen in this illustration created on February 11, 2025. (Reuters)

Big retailers traditionally spend millions on attracting eyeballs for the holiday season. Now, they're looking to get noticed by something else - AI agents.

Most of this holiday season's projected $253 billion in US online sales will happen through website visits or standard online searches that favor companies that spend big on search engine ads. But chatbots like OpenAI’s ChatGPT or Google's Gemini have become part of the mix, with shopper-facing tools that can give product descriptions, compare prices, or allow purchases directly within large-language models as US consumers increasingly use AI for advice on the best holiday stocking stuffers.

"We've seen brands that previously were putting out three or four new blog posts or articles a month, are now trying to do 100 or 200," said Brian Stempeck, chief executive at generative engine optimization platform Evertune.ai, which works with clients to make their websites discoverable by large language models.

The company charges "around $3,000" per month to its clients, which include apparel and shoe companies, for its services, Stempeck said. Traditionally, retailers based their Google and Meta ad placements on phrases that users searched for or links they previously clicked.

Without the ability to advertise in the largest generative AI tools, companies are trying new methods, like posting more frequently on branded blogs or writing about their products on Reddit.

Big retailers are building websites that cannot be seen by shoppers, intended to be read solely by AI scrapers, automated data extraction tools that scour the internet for information.

The scrapers then feed information to platforms like ChatGPT and Gemini, which then offer suggestions on gifts, apparel and other holiday merchandise.

SMALL TRAFFIC, MORE INTENT

Traffic to retail websites from generative AI platforms is currently still a fraction of overall activity. ChatGPT referrals to Amazon, Walmart and eBay in October accounted for less than 1% of each site's overall traffic, according to data firm Sensor Tower.

EBay said while traffic from AI sources is a small percentage of overall traffic, shoppers finding its links through agentic AI come to the online marketplace with high intent.

Walmart did not respond to a request for comment.

But retailers clearly see an opportunity. Bed linen company Brooklinen is paying social media influencers to talk about its bath towels and comforters on platforms like Facebook, YouTube, and TikTok, Brooklinen Chief Operating Officer Rachel Levy said. AI scrapers pull information from the text of product reviews and audio transcripts on these posts.

Brooklinen has also submitted its $199 comforter for awards from publications like the New York Times' Wirecutter to boost its chances of appearing in AI agent responses.

Currently, traffic from agentic AI sources is “super small,” she said, because Gen Z, the biggest adopter of tools like ChatGPT, has less buying power than older generations.

Miami-based hair care company R+Co is buying ads on Amazon’s voice assistant Alexa based on the questions that customers are asking its Rufus agent, R+Co President Dan Langer said.

Google recently introduced features that help shoppers use AI to track prices and buy goods, a task that can only happen if retailers' products are easily found by the tech giant's scrapers. Its AI mode and Gemini chatbot consider numerous factors, such as store locations or retailer quality when referring links to users, said Lilian Rincon, vice president of product for Google Shopping.

Google is testing ads in AI Mode currently in the US, but not the Gemini app, the company said.

Existing Shopping and Performance Max ad product campaigns are eligible to show up in AI mode through the testing, the company said.

Amazon CEO Andy Jassy said on the company's October earnings call that shoppers who use Rufus are 60% more likely to buy products.

Among large retailers, Walmart and Target both recently announced plans for apps to allow people to shop directly with chatbots.

Most Viewed

 
 
Technology

AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP
TT
TT

AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP

British scientists said Thursday that a world-first AI tool to catalogue and track icebergs as they break apart into smaller chunks could fill a "major blind spot" in predicting climate change.

Icebergs release enormous volumes of freshwater when they melt on the open water, affecting global climate patterns and altering ocean currents and ecosystems, reported AFP.

But scientists have long struggled to keep track of these floating behemoths once they break into thousands of smaller chunks, their fate and impact on the climate largely lost to the seas.

To fill in the gap, the British Antarctic Survey has developed an AI system that automatically identifies and names individual icebergs at birth and tracks their sometimes decades-long journey to a watery grave.

Using satellite images, the tool captures the distinct shape of icebergs as they break off -- or calve -- from glaciers and ice sheets on land.

As they disintegrate over time, the machine performs a giant puzzle problem, linking the smaller "child" fragments back to the "parent" and creating detailed family trees never before possible at this scale.

It represents a huge improvement on existing methods, where scientists pore over satellite images to visually identify and track only the largest icebergs one by one.

The AI system, which was tested using satellite observations over Greenland, provides "vital new information" for scientists and improves predictions about the future climate, said the British Antarctic Survey.

Knowing where these giant slabs of freshwater were melting into the ocean was especially crucial with ice loss expected to increase in a warming world, it added.

"What's exciting is that this finally gives us the observations we've been missing," Ben Evans, a machine learning expert at the British Antarctic Survey, said in a statement.

"We've gone from tracking a few famous icebergs to building full family trees. For the first time, we can see where each fragment came from, where it goes and why that matters for the climate."

This use of AI could also be adapted to aid safe passage for navigators through treacherous polar regions littered by icebergs.

Iceberg calving is a natural process. But scientists say the rate at which they were being lost from Antarctica is increasing, probably because of human-induced climate change.

 

Technology

AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
TT
TT

AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)

Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it ​can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

The lackluster prediction comes despite an unexpected boost from sales of certain artificial intelligence chips to China, which began in the last quarter after the Trump administration approved a license for orders that AMD received in early 2025.

And without those sales to China which generated $390 million, AMD's data-center segment would have missed estimates for the fourth quarter.

AMD said it expects revenue of about $9.8 billion this quarter, plus or minus $300 million. That's down from $10.27 billion in the fourth-quarter which was up 34% year-on-year and ahead of LSEG ‌estimates for $9.67 billion.

PALES ‌NEXT TO NVIDIA

Though AMD is seen as one of the ‌few ⁠contenders ​that can seriously ‌challenge Nvidia, investors noted the stark contrast between the two companies' performances. AMD expects an adjusted gross margin of 55% this quarter. Nvidia has said it expects adjusted gross margin in the mid-70% range during its fiscal 2027.

"The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for," said Bob O'Donnell, president of TECHnalysis Research.

The forecast for the current first quarter includes $100 million from sales to China, where the situation remains "dynamic," AMD CEO Lisa Su said on a conference call with investors.

The US government ⁠has placed restrictions on the exports of advanced chips to China, but AMD received licenses to sell modified versions of its MI300 series ‌of AI chips there. Its MI308 chip competes with Nvidia's H20 ‍chip in China.

OPENAI SALES

AMD has accelerated its ‍product launches and is moving into selling full AI systems to better compete against Nvidia, which now ‍provides "rack-scale" systems that combine GPUs, CPUs and networking gear.

Last year, it entered into a multi-year deal to supply AI chips to ChatGPT-owner OpenAI, which would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.

Su reiterated on Tuesday that the company ​expects sales of a new flagship AI server to OpenAI and others to rise rapidly in the second half of this year, saying a global memory-chip crunch will not ⁠slow its plans.

"I do not believe that we will be supply-limited in terms of the ramp that we put in place," Su said.

BEYOND OPENAI

As Big Tech and governments across the globe double down on investing in AI hardware, shares in Santa Clara, California-based AMD have doubled since the start of 2025, outperforming a 60% bump in the broader chip index.

But analysts remain concerned that AMD's success remains tied to a handful of customers that rivals such as Nvidia could try to poach. Reuters reported this week that Nvidia made a $20 billion move to hire most of chip startup Groq's founders after OpenAI held chip supply discussions with the startup.

"Growth appears concentrated in large deployments and specific regions, and China shipments are significant enough to influence a quarter," said eMarketer analyst Gadjo Sevilla.

Revenue in AMD's key data-center segment grew 39% to $5.38 billion in the ‌fourth quarter. But excluding sales of the MI308, which is a data-center chip, that revenue would have been $4.99 billion, below estimates of $5.07 billion.

Technology

Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
TT
TT

Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)

The runaway success of the Switch 2 console drove up Nintendo's net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday.

But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.

The Switch 2 became the world's fastest-selling games console after launching to a fan frenzy last summer.

It is the successor to the original Switch, which soared in popularity during the pandemic when games such as "Animal Crossing" struck a chord during long lockdowns.

Both are hybrid devices that can be connected to a TV or used on-the-go.

In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said.

But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.

"Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season," the company said.

Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added.

"Maintaining momentum is certainly a big focus for Nintendo," Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told AFP.

A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as "Resident Evil Requiem" should help fill the gap, she said.

Nintendo said Tuesday it planned to release "Mario Tennis Fever" this month and "Pokemon Pokopia" in March.

While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business.

The Switch 1 has now sold 155.37 million units -- overtaking the Nintendo DS console to be its best-selling hardware of all time.

But soaring prices for memory chips, used in gaming consoles as well as phones, laptops and other electronics, will likely be a headwind for the company.

Their prices have been pushed up as chipmakers focus on producing the advanced memory chips in huge demand to power AI data centers.

"Nintendo and other console manufacturers are publicly keeping quiet about the impact of the shortage," gaming industry consultant Serkan Toto told AFP.

But "users can forget the past when consoles always became cheaper in tandem with component costs falling over time", with price hikes potentially on the way in 2026, he said.

Yang said she thought a price increase for the Switch 2 "is not out of the question" but added that Nintendo "would likely exhaust all other options" before doing so.