OpenAI Fires Shot at Google With AI-Powered ‘SearchGPT’

OpenAI’s new “SearchGPT” tool, launched Thursday (July 25), aims to shake up the eCommerce industry online with AI-powered product discovery and comparison.

The prototype, available to a limited test group, promises more concise and relevant results than conventional search engines. Unlike Google’s pages of links, SearchGPT offers summarized answers with source links, potentially revolutionizing how consumers discover and purchase products online.

“While the fundamentals of the first search are not hugely different, it is the ability to follow up on your first query that really extends the capabilities of SearchGPT,” Alex Moran, SEO lead at the marketing agency Space & Time, told PYMNTS. “This is giving OpenAI’s new product a much more direct approach towards what has been a big part of Google’s aim for years: the ability to complete the whole user journey directly on their platform. Google has been subtly pushing this for years, including featured snippets and the ability to book or reserve hotels or restaurants directly on their platform.”

The Race for AI-Powered Search

OpenAI’s move comes amid a broader industry shift toward AI-enhanced search capabilities.

Microsoft’s Bing search engine on Wednesday (July 24) announced a test feature called “Bing generative search,” which uses AI to summarize search results. This development follows Google’s earlier attempt at AI summaries, which was pulled back after issues with spreading misinformation.

OpenAI is one of many companies leveraging AI in search. As PYMNTS CEO Karen Webster noted in November, Google has been using AI to improve search since 2001. The tech giant further intensified its AI focus in 2017 with the launch of its Google AI division, which has been working on innovating large language models and leveraging Google’s massive search data set.

Advanced natural language processing capabilities are at the heart of SearchGPT’s innovation.

Dmytro Shevchenko, a data scientist from Aimprosoft, told PYMNTS that the technology allows the search engine to understand the nuances, context and intent behind user queries, allowing for more nuanced responses tailored to user intent.

Shevchenko illustrates the difference in SearchGPT’s approach: “If a user asks, ‘What are some quick dinner recipes?’ SearchGPT realizes that the user wants a quick and convenient meal. Therefore, it can suggest a pasta recipe that cooks in 20 minutes and explain why it’s a good choice.”

The tool’s conversational nature sets it apart from traditional keyword-based searches.

“SearchGPT works like a conversation with an intelligent assistant, making search more intuitive and convenient,” Shevchenko added. “It learns based on your behavior and preferences to provide increasingly accurate and personalized answers over time.”

Reshaping eCommerce and Digital Advertising

For eCommerce, SearchGPT could mean a seismic shift in how products are discovered and purchased.

“Soon, users might be engaging in natural conversations with SearchGPT, asking for product recommendations, comparing items and receiving detailed information without typing anything into the search engine,” Ross Kernez, founder of SEO Meetup, told PYMNTS.

The potential disruption extends beyond user experience to the core of digital advertising.

“There will be a new need for transparency as it may be harder to tell the difference between organic versus sponsored content,” Jason Seeba, chief marketing officer of Session AI, told PYMNTS. “That means more disclosure, but also potentially more regulation.”

For advertisers and publishers, adaptation will be critical.

“The landscape for search may quickly shift, meaning that publishers will have to adapt quickly, especially if they’ve relied on traditional channels,” Seeba predicted. He foresees new ad formats and the possibility of brands deploying AI agents to communicate within this new ecosystem.

The integration of real-time web data further distinguishes SearchGPT.

“SearchGPT integrates real-time web data with advanced AI capabilities, removing the limitations associated with static knowledge cutoffs in many AI models,” Shevchenko noted. This could lead to more personalized shopping experiences, with the AI considering user intent, context and behavior to make product suggestions.

Challenges and Opportunities

The transition may not be seamless for all.

“There will be a gap between the older and younger generations, since many users may need education and guidance on how to use voice shopping features effectively, especially those who are less familiar with ChatGPT and voice shopping technology,” Kernez said.

Despite the potential disruption, industry experts caution against writing off the current search giant.

“I wouldn’t count out Google — they have the depth, computing and experience to win here,” Seeba said. “But there is a world where they may be willing to cannibalize some of their search revenue as consumers demand more direct results.”

As OpenAI refines SearchGPT, the tech industry watches closely. The battle for the future of search — and, by extension, eCommerce — is heating up, with billions of dollars and the digital marketplace hanging in the balance.