PayPal’s Honey integrates with ChatGPT for AI shopping help

Cosmico - PayPal’s Honey integrates with ChatGPT for AI shopping help
Credit: PayPal Holdings, Inc.

PayPal is bringing AI into its Honey browser extension, announcing Tuesday new features that integrate directly with AI chatbots to help consumers make smarter shopping decisions.

AI-Powered Shopping Support

When users ask an AI chatbot for product recommendations, the PayPal Honey extension will now display real-time pricing, links to products, available merchant options, and personalized deals. The system is also designed to fill in gaps when a chatbot’s suggestions overlook major retailers, ensuring consumers get a fuller picture of their options.

PayPal says the new features aim to improve price comparison for shoppers while also driving sales for merchants.

Agentic Commerce Rollout

The update is part of PayPal’s broader push into agentic commerce, which includes:

  • A partnership with Google announced earlier this month
  • Tools like a remote MCP server and Agent Toolkit
  • Perks such as free access to Perplexity’s premium service for a year and its new Comet browser

For now, Honey’s AI features will integrate with OpenAI’s ChatGPT, with support for additional chatbots expected in the future.

Rising Competition From AI Providers

The move comes as AI providers themselves increasingly compete in product recommendations and shopping. Just yesterday, OpenAI announced its own agentic shopping system, complete with an “Instant Checkout” feature. While that service currently supports Etsy with Shopify integration coming soon, it points to a future where consumers may begin their shopping journey in AI chatbots rather than traditional websites.

This shift could challenge Honey’s role in online shopping, making AI integration critical for PayPal to stay relevant.

Honey’s PR Troubles

The launch follows a difficult stretch for Honey. The extension recently faced criticism after a YouTuber accused the company of diverting sales credit from influencers, allegedly costing creators income. The accusations have sparked lawsuits, putting Honey under additional scrutiny as PayPal moves to reposition it with AI-powered capabilities.

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