Podcast Summary: The Rise of AI in Retail: ChatGPT's Impact

Podcast: AI Hustle: Make Money from AI and ChatGPT, Midjourney, NVIDIA, Anthropic, OpenAI
Hosts: Jaeden Schafer & Jamie McCauley
Date: December 9, 2025

Overview

This episode dives into the rapidly evolving influence of AI, particularly ChatGPT, on the retail landscape and consumer behavior. The hosts analyze data from Black Friday and Cyber Monday, discuss how big retailers are capitalizing on AI-driven traffic, and share key business strategies for leveraging ChatGPT referrals. Throughout the episode, they blend personal anecdotes, actionable advice, and up-to-the-minute research to highlight how AI is reshaping everything from buyer journeys to marketing playbooks.

Key Discussion Points & Insights

1. ChatGPT’s Surging Influence in Retail Referrals

• [00:00] Jaeden: Reports a 28% year-over-year increase in referrals to retail apps from ChatGPT, especially significant during Black Friday and Cyber Monday.
  • AI is shifting consumer search behavior from traditional engines (e.g., Google) toward conversational platforms like ChatGPT.
  • Essential for both product- and service-based businesses to focus on “ranking” within ChatGPT results.

Quote:

"Whatever your business is, service based or product, it's going to have to make a huge effort to focus on ChatGPT ranking... this is where people are moving away from Google to a large percentage of searches are going there."
— Jaeden [00:46]

2. Benefits Skew Toward Large Retailers

• [01:51] Jamie: Not surprised by the shift, but concerned that the big gains mostly benefit retail giants like Amazon and Walmart at the expense of small businesses.
• Amazon’s share of ChatGPT referrals grew to 54% (from 40.5% in 2024). Walmart followed, rising to 14.9%.
  • The conversation highlights monopolistic concerns as AI recommendations reinforce established retailers.

Quote:

"The concern here is that this... is mostly benefiting the big giants... Amazon and Walmart are just getting even more referrals from ChatGPT."
— Jamie [01:55]

3. The Real Referral Numbers

• [02:38] Jaeden: While Amazon and Walmart saw big jumps, actual ChatGPT-driven e-commerce referrals are still a tiny portion of its use:
  • In 2024: Only 0.64% of ChatGPT sessions on Black Friday directed to retail apps.
  • In 2025: Up to just 0.82%.
  • With 6 million weekly active users, potential is huge, but most current product-driven traffic still either goes straight to retailers or is discovered through alternative channels like social media.

Quote:

"Of all of those users, only 0.82%... on Black Friday was actually going towards products that people were buying towards these Amazon and Walmart and like these other products."
— Jaeden [03:14]

• Social media, not AI, still dominates discovery for niche/boutique products.
• ChatGPT is more likely to surface big brands for consumer electronics; boutique or niche products remain largely undiscoverable through AI chat for now.

4. A Personal Story: Hybrid Online & Offline Shopping

• [05:31] Jamie: Shares an anecdote about using ChatGPT for a real-world purchase decision between TV models while physically in Walmart.
  • Snapped photos of TV models, uploaded them to ChatGPT, and received a recommendation, leading to in-store purchase.
  • Highlights how AI can influence purchases even when click-throughs aren't registered.

Quote:

"I quickly just snapped a picture and I uploaded both photos and I said, which one of these TVs is better? ... ChatGPT... was like, absolutely. Get the Google TV one from Walmart, it's way better. So it helped me make the purchase decision..."
— Jamie [06:03]

5. Real Impact Beyond Direct Clicks

• [06:45] Jaeden: Many users use ChatGPT for research, then manually find and purchase products on retailer sites (without using direct referral links).
  • The real influence of AI on purchase decisions is likely undercounted by standard referral metrics.
  • Consumer workflows increasingly use AI for comparative shopping—even if the actual transaction doesn’t trace back to ChatGPT directly.

6. Business Lessons from Retail Tactics

• [07:15] Jaeden: Explains the classic “loss leader” retail strategy, using Jamie’s story as an example.
  • Walmart lured Jamie in with a cheap TV mount, but the bigger sale was the TV.
  • Applies this as a metaphor for all kinds of business—use a value-focused entry point to upsell big-ticket products or services.

Quote:

"Whatever you sell, whatever your service is, have a loss leader, have something very small, cheap that people know they can always get for good value and then you can hit them with the big packages and you bring them in that way."
— Jaeden [08:00]

7. The Urgency to “Rank” in ChatGPT & Future Trends

• [09:08] Jamie: Retail sites referred by AI chatbots are 38% more likely to convert.
• [09:36] Jaeden: Adobe reports an 805% year-over-year increase in AI-driven clicks to US retail sites on Black Friday; 760% increase overall during Nov 1 - Dec 1.
  • Amazon confirms trend with its own robust Cyber Monday stats.
  • AI-driven conversions outpace standard web referral rates.
  • Reiterates: Businesses must learn to optimize for and “rank” in ChatGPT to tap this trend.

Quote:

"Do not sleep on this. This is a massive trend. We'll keep you guys up to date as these numbers are only going to grow. Make sure that you're ranking your business in there."
— Jaeden [09:47]

Notable Quotes & Memorable Moments

• "I think it's going to be impossible to ignore in the future for businesses..." — Jaeden [00:24]
• "I'm just thinking of this customer Persona...there's no way ChatGPT is gonna find this random little Etsy or...Shopify store..." — Jaeden [04:26]
• "It was like a hybrid between online shopping and in store shopping. But I was glad I consulted ChatGPT." — Jamie [06:26]

Timestamps for Important Segments

• 00:00 – 01:50 | Introduction to AI-driven retail app referrals; the importance of ChatGPT rankings
• 01:51 – 03:13 | Big retailers dominate AI referrals; data on Amazon and Walmart’s rapid gains
• 03:14 – 05:30 | Contextualizing ChatGPT’s retail impact; real numbers vs. hype; the role of niche/Instagram-driven commerce
• 05:31 – 07:14 | Jamie’s TV-buying story: AI as a hybrid purchase advisor
• 07:15 – 09:07 | The “loss leader” principle and lessons for entrepreneurs
• 09:08 – 09:56 | Skyrocketing AI referrals according to Adobe; 38% higher purchase conversion from AI chatbots; call to action for ranking in ChatGPT

Actionable Takeaways

• For Entrepreneurs:
  • Start focusing on how your business can appear in ChatGPT recommendations; the landscape is shifting fast.
  • Use “loss leader” tactics to increase upsell opportunities, both online and offline.
• For Small Businesses:
  • Find creative ways to get noticed in AI-driven product and service searches, as social media still reigns for niche discovery.
• For Retailers:
  • Data shows AI referrals convert at a much higher rate—optimizing for these channels can be a strong growth lever over the next year.

Overall Tone:
Engaging and practical, with a “let’s hustle and adapt” vibe. The hosts blend concrete data with relatable experiences, making technical trends highly accessible for entrepreneurs and side hustlers alike.