TikTok launches AI-based shopping assistant and instant payment feature

TikTok has announced the arrival of new features in the United States, featuring an artificial intelligence (AI)-based shopping assistant and an in-app payment feature that allows users to purchase directly from brands instantly.

According to TechCrunch, the AI assistant is designed as a conversational agent intended to help users find and purchase products. The assistant is promised to understand context and remember user preferences and needs throughout the conversation.

The AI shopping assistant is tasked with providing useful information such as product details, shipping information, sizing, availability, and assistance in completing purchases.

This new feature enables TikTok to capture more of the user journey and potentially achieve a higher transaction value, without directing users to other applications.

By combining an intelligent shopping assistant with direct payment access, TikTok is transforming discovery feeds driven by curiosity into a space where users can get answers to all product-related questions and purchase them immediately without switching apps.

By building an AI shopping assistant directly within its application, users will remain on the TikTok platform instead of seeking information from other platforms.

This expansion occurs alongside TikTok’s increasing influence on shopping activities. Rather than relying solely on TikTok Shop to drive purchases, the social network is now integrating shopping tools more directly into its broader application, including the ‘For You’ feed.

According to the TikTok Economic Impact Report in the US released last week, activity on the platform helped generate $81 billion in GDP for US businesses, while 54 million Americans stated they have purchased products after watching TikTok videos.

TikTok Shop was launched in the US in September 2023. Market research firm eMarketer estimates that the shop will generate approximately $15.8 billion in US sales in 2025, representing about 18 per cent of all social commerce in the US.