#AI4M: Swipe, Sort, Save: The New AI-Powered Buyer Journey

There has been a lot of activity around using AI to help people shop. This space is still emerging, so it could be ripe for class discussion. There are good questions about whether customers even want these benefits—or are ready for them. Here are three recent articles on emerging apps or website features.

Phia: Gen Z Founders Tap AI for Fashion Shopping. Phoebe Gates (yes, this is Bill and Melinda’s daughter) and Sophia Kianni, both recent college grads, created Phia, an AI-powered app and browser extension that helps users find the best fashion deals online. By scanning 40,000 websites, the app uses artificial intelligence to compare prices and recommend purchases. Phia quickly attracted over 600,000 users and raised $8 million in seed funding. What sets it apart is that its creators are the Gen Z shoppers it was designed for, enabling them to develop a product that authentically fits their generation’s preferences. Read more at Business Insider.

Amazon’s “Help Me Decide” AI Cuts Through Shopping Confusion. Amazon’s new “Help Me Decide” tool helps users pick the best product by analyzing reviews, prices, return rates, and purchase history. By using large language models, Amazon tailors personalized product recommendations and offers upgrade/budget alternatives. This tool is part of a growing suite of AI features (including review summarizers and personalized interests) that aim to streamline decision-making and reduce customer hesitation in online shopping. Read more at Fast Company, “Okay, Amazon’s new AI shopping feature is actually pretty helpful.”

Black Friday and the Rise of AI-Powered Deal Hunting. AI is becoming a core tool for consumers looking to find bargains, especially during peak shopping events like Black Friday. Surveys show that 33–56% of shoppers now plan to use AI assistants for gift inspiration, price comparison, and even purchase execution. Retailers are responding by adding AI-driven recommendation engines and gift finders. As AI traffic to retail sites skyrockets, this signals a new norm in how customers interact with digital storefronts. See Fast Company, “AI is going to be a game changer for Black Friday.”

Relevant Chapters in Essentials of Marketing

• Chapter 5: Consumer Behavior – Will AI change how consumers shop?
• Chapter 12: (Online) Retailing – How will this change the online retailing experience?  
• Chapter 14: Personal Selling and Customer Service – AI as a digital “sales assistant.”
• Chapter 17: Pricing – AI tools help customers find price deals and shape pricing expectations.

Class Discussion Ideas

In-Class Activities

1. AI Shopping Assistant Battle
   • Students compare three AI tools (Phia, Amazon’s “Help Me Decide,” ChatGPT) on ease of use, results, and personalization.
   • Present findings as short group presentations.
2. Build Your AI-Enabled Shopping Startup
   • In teams, students pitch a business idea that uses AI to solve a shopping problem (e.g., ethical product sourcing, secondhand fashion).
   • Include a value proposition, customer segment, and basic app function.
3. Black Friday AI Showdown
   • Run a simulation where students are given a shopping list and must use AI tools to find the best deals in real time.
   • Debrief by analyzing time saved, money saved, and trust in AI recommendations.

Discussion Questions and Answer Ideas

The discussion questions here could fit well with Chapters 5, 12, 14, and 17.

1. Why is AI becoming such a popular tool in the shopping process?
   • Answer idea: It helps consumers make faster, more personalized decisions; cuts down on time spent comparing products; builds trust in digital platforms.
2. How do tools like Phia and Amazon’s AI assistant differ in their approach to helping consumers?
   • Answer idea: Phia focuses on external price comparison across retailers; Amazon’s tool recommends from within its platform using detailed behavioral data.
3. What competitive advantages does Phia have by being created by Gen Z for Gen Z?
   • Answer idea: Authenticity, deep user insight, relatable UX/UI, and an intuitive understanding of user pain points.
4. How might AI tools affect impulse buying or overconsumption?
5. Answer idea: Could either reduce it by helping users make more rational choices—or increase it through persuasive, hyper-personalized recommendations.
6. What are the risks for retailers who don’t adopt AI tools quickly enough?
   • Answer idea: Losing market share to AI-savvy competitors, reduced customer engagement, and outdated shopping experiences.
7. What ethical concerns might arise from retailers using AI to guide purchase decisions?
   • Answer idea: Privacy issues, algorithmic bias, or manipulative upselling without transparency.
8. How might AI shape pricing strategies during big events like Black Friday?
   • Answer idea: AI can optimize dynamic pricing based on demand, user intent, or competitor moves. It can also help consumers detect price drops.
9. Would you trust AI to make purchases on your behalf? Why or why not?
   • Answer idea: Trust depends on past accuracy, clarity of the recommendations, and transparency. Students can debate comfort levels.

AI disclosure. ChatGPT was used to develop an initial draft of this blog post. DALL-E was used to create the images.