Reddit taps AI to convert conversations into commerce
What's the story
Reddit is testing a new artificial intelligence (AI) search feature that connects community recommendations with products from its shopping and advertising partners. The test will be available to a small group of US users, who will see interactive product carousels in their search results. These carousels will include pricing, images, and direct links for purchasing the products.
Feature details
How the AI search tool works
The AI search tool is designed to improve Reddit's user experience by providing product recommendations directly from discussions. When users search for terms like "best noise-cancelling headphones" or "electronic gift ideas for a college student," they will see a carousel of related products at the bottom of their results. This carousel will include products mentioned by users in conversations on related posts and comments.
User guidance
'Instant information about any product'
The company explained in a blog post that the new feature "gives redditors instant information about any product." The test is aimed at simplifying navigation on Reddit while keeping community perspectives at the center of the experience. "We'll continue learning from how people use this new feature and refine the experience over time," it added.
Strategic move
Integrating AI with e-commerce
The announcement of the AI search tool comes as part of Reddit's broader strategy to integrate its community-driven platform with e-commerce capabilities. This is not the first time Reddit has ventured into this space. Last year, it launched its first shoppable ad product called Dynamic Product Ads (DPA). These ads show personalized product recommendations based on users' interests.
Revenue potential
Search growth and business potential
Reddit CEO Steve Huffman recently hinted at the potential of the platform's AI search engine as a major business opportunity. He said it could not only lead to product growth but also serve as a revenue driver. Huffman also revealed that weekly active users for search grew by 30% in the last year, from 60 million to 80 million.