Fanatics is using OpenAI's Codex to power "Shop the Look," a feature that suggests coordinated outfits on product pages for sports fans, according to CNBC.
The tool pairs each item with other products that are in stock, taking into account the shopper's team and the style they have in mind, according to CNBC. It analyzes information about products and the catalog to identify items that go together, then reassesses its suggestions. A shopper considering a jersey might be shown a cap, socks and various other accessories next to it.
Justin Tsai, chief product officer for Fanatics Commerce, said views of recommended items rose 10% after the rollout, according to CNBC. He said the suggestions give shoppers "more conviction" about what they plan to buy by showing how an item fits with other team gear.
Fanatics sells over 1.5 million distinct products, or stock keeping units, across its sites. Fanatics Commerce makes over 45 million items each year and sells to buyers in more than 180 countries.
Tsai said the company operates hundreds of sites and that customers struggle to search its catalog. "They're always trying to look through our very large catalog to figure out what they can buy," he said, according to CNBC. Shopping sessions averaged more than 30 minutes, and Fanatics debuts 1,000 or more new items every week, he said.
Photo shoots and styled looks take too long to produce for a catalog that large, or for rapid releases such as hats and shirts celebrating a championship, Tsai said. Team alignment also matters to buyers. "Nobody who is a Los Angeles Dodgers fan wants to be matched with a San Francisco Giants item … team and player alignment is extremely important in our world," he said, according to CNBC.
Rosemary DeArago, head of industry go-to-market at OpenAI, called personalization in retail “an age-old problem,” according to CNBC. "In the past we were trying to stitch together something that would be good to show a customer," she said. "With AI, you can do more deterministic matching to do personalization in this next-level way."
DeArago said curated looks and in-person try-ons will keep a place in shopping. She said AI can narrow large selections and show what works with a purchase such as an authentic team jersey.
OpenAI has been trying out shopping features in ChatGPT, including one last fall that allowed users to purchase merchants’ goods inside the chatbot, according to CNBC. OpenAI is winding down that Instant Checkout effort and is collaborating with retailers on purpose-built apps inside ChatGPT, according to CNBC.
Team merchandise remains Fanatics' biggest source of revenue, according to CNBC. Fanatics founder and CEO Michael Rubin told CNBC's "Squawk Box" earlier this month that the commerce business will top $7 billion in sales this year, while the collectibles business, which includes Topps trading cards, will bring in roughly $5.5 billion.