🎁Google Automates Holiday Shopping

PLUS: China Opens Door To Auto AI Chatbots | Firefox Gets AI Window

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🗞️In this edition

  • Google launches AI shopping features for holiday season

  • China approves AI chatbots for Tesla, Volvo, Mercedes

  • Firefox building AI window browsing feature with chatbot

  • Workflow Wednesday #45: Scaling Smarter

  • In other AI news –

    • AI-made songs now dominate the charts

    • Disney Plus hints at AI-generated user videos

    • LinkedIn adds AI-powered people search

    • 4 must-try AI tools

Hey there,

Google launched AI shopping tools that can call local stores and complete purchases automatically, racing Amazon and Perplexity on agentic commerce. China approved AI chatbots for Tesla, Volvo, and Mercedes after greenlighting 611 domestic services, with Musk expecting Full Self-Driving approval by March. And Firefox announced AI Window, an opt-in browsing feature positioning Mozilla as the "respectful" alternative while sitting at 3% market share.

We're committed to keeping this the sharpest AI newsletter in your inbox. No fluff, no hype. Just the moves that'll matter when you look back six months from now.

Let's get into it.

What's happening:

Google is rolling out suite of AI shopping updates just ahead of holiday season. The company Thursday unveiled new tools including conversational shopping in Google Search, new shopping features within Gemini app, agentic checkout, and AI tool that can call local stores to find out if product you want is available.

One update will allow consumers to ask shopping questions in AI Mode, Google's conversational search feature that lets you use natural language queries in chatbot-style interface. Responses will be tailored to your question, and chatbot will provide images when you need visual inspiration, alongside details like price, reviews, and available inventory.

Google is rolling out agentic checkout within Google Search in US, including in AI Mode. The feature is currently compatible with merchants like Wayfair, Chewy, Quince, and select Shopify stores.

To use agentic checkout, you can track an item's price to be notified if price drops to fall within your budget. You can then opt to have Google purchase the item for you on merchant's website using Google Pay. The company says it will always ask your permission first, and will have you confirm purchase and shipping details.

Another AI feature can call businesses on your behalf to find out if store carries product, how much it costs, and whether there are any promotions.

The feature is built on Google's Duplex technology, introduced in 2018, as well as its Shopping Graph and payments infrastructure. After you've provided information about product you're looking for, AI will call local stores and make inquiries about product, then come back with summary of findings.

This feature is rolling out now in US for specific categories like toys, health and beauty products, and electronics. To use this feature, search for products "near me," then use option "Let Google Call."

Google says it's being mindful of how merchants will experience these calls. AI will not call too often and is clear about questions it asks. Retailers can choose to opt out. Those who don't will first hear Google disclose it's an AI calling on customer's behalf.

Why this is important: 

Google's implementing agentic AI that takes actions on users' behalf, not just answers questions.

Agentic checkout tracking prices and automatically purchasing when items go on sale is autonomous shopping agent. That's different from search or recommendations. AI's making purchasing decisions.

Retailers receiving AI calls asking about inventory and pricing is new operational burden. Merchants can opt out, but default is opt-in. That means local stores will start getting AI calls unless they proactively block them.

The Shopping Graph with 50 billion listings, 2 billion updated hourly, is a massive data advantage. Google has real-time inventory and pricing data competitors don't.

Our personal take on it at OpenTools:

This is Google racing Amazon and Perplexity on agentic shopping.

Amazon threatened legal action against Perplexity for its shopping agent. Now Google's launching similar features integrated into Search. That's competitive pressure forcing Google's hand.

Agentic checkout is clever. Track prices, notify when item hits budget, auto-purchase with Google Pay. That's conversion optimization for retailers while appearing to serve consumers.

But automatically purchasing when price drops creates impulse buying behavior. "Always ask permission first" is reassuring until you realize you've already opted into automated purchasing by setting price alerts.

The store calling feature is most interesting and problematic. Google's AI phoning local businesses asking about inventory is operational burden for small retailers who don't have sophisticated inventory systems.

"Being mindful of how merchants will experience these calls" and "will not call too often" is vague. What's "too often"? One call per day? Ten? A hundred?

The Duplex technology from 2018 finally finding a use case. Google demoed it calling restaurants for reservations, got privacy backlash, mostly shelved it. Now it's back for shopping.

Sponsored listings in AI Mode means Google's figured out ads in conversational search. That's critical for business model. AI features need revenue, not just utility.

This is all launching ahead of holiday season. That's intentional timing to capture maximum shopping volume and test at scale.

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What's happening:

Tesla, Volvo, and Mercedes-Benz have become first foreign carmakers approved to deploy AI chatbots in their vehicles in China, marking potential acceleration of Beijing's vetting process for AI services.

The Cyberspace Administration of Beijing said in notice it registered "Mercedes-Benz virtual assistant" as generative AI service Tuesday, the same day Shanghai cyberspace administration approved Tesla Shanghai's xBot service and Volvo's local chatbot Xiao Wo.

The approvals come as AI becomes increasingly embedded in hardware products, from electric vehicles to smartphones. China implemented a registration-based system for generative AI services in April 2024, requiring all such services to be officially registered before they can be offered to consumers. 

Apple has yet to receive approval to roll out Apple Intelligence into iPhones in mainland China, while Tesla is waiting for go-ahead to deploy its Full Self-Driving software locally.

Domestic brands have been rushing to register their own AI services to gain a competitive edge over foreign brands. According to the Cyberspace Administration of China, 611 generative AI services had been registered as of November 1. Beijing had registered 183 generative AI services as of Wednesday, while Shanghai had registered 115.

The approvals for foreign carmakers offer hope China may be streamlining its review process. Tesla CEO Elon Musk said last week he expected FSD to be fully approved in China by early next year.

Why this is important:

Tesla, Volvo, and Mercedes getting approval on same day for different chatbots in different cities (Beijing and Shanghai) suggests coordinated policy shift, not random timing.

Musk expecting Full Self-Driving approval by February or March is significant. FSD is more sensitive than voice chatbots because it controls vehicle operation. If China approves FSD, that's major regulatory shift.

Tesla integrating DeepSeek and ByteDance AI into China vehicles shows foreign companies using Chinese AI models to gain approval. That's compliance strategy, not technology preference.

Dozen domestic carmakers already announced DeepSeek-enabled features by mid-February shows Chinese brands had months head start on foreign competitors.

Our personal take on it at OpenTools:

611 domestic AI services approved. First three foreign carmaker chatbots just approved. That's 203-to-1 ratio. Regulatory process clearly favoring domestic over foreign.

Tesla, Volvo, and Mercedes approvals on same day suggest China's ready to let foreign AI in, but on their timeline and terms. Domestic brands got months head start.

Apple Intelligence still blocked while carmaker chatbots approved shows China distinguishing between AI categories. Voice assistants in cars approved. AI on phones with billion+ users blocked.

That's strategic. Cars sold in China stay in China. iPhones travel. China wants AI that serves Chinese market, not AI that could be used globally.

Tesla using DeepSeek and ByteDance AI instead of its own models is telling. To get approval, foreign companies must use Chinese AI providers. That keeps data and training within China's ecosystem.

Musk's confidence about February or March FSD approval is interesting. Either he's got inside information from regulators or he's bluffing to pressure approval. Given his relationship with Trump administration and China's desire for Tesla investment, he might have leverage.

What's happening:

Another AI browser, this time Firefox, the self-described "independent browser" from Mozilla. Firefox says it is building an AI browsing feature called AI Window that includes an AI assistant and chatbot. The company calls it an opt-in "intelligent and user-controlled space" currently being built "in the open" with user input.

In September, the company launched "shake to summarize" feature in Firefox that uses AI to generate summaries of webpages open on your iPhone. Mozilla positions itself as the respectful browsing company that gives users option to use as much AI as they want.

"While others are building AI experiences that keep you locked in conversational loop, we see different path, one where AI serves as trusted companion, enhancing your browsing experience and guiding you outward to the broader web," Mozilla wrote on its company blog.

AI Window will be one of three browsing experiences offered to Firefox users in addition to private and classic windows. In post to Mozilla Connect forum Thursday, the company wrote users will be able to pick the AI model they want to use in AI Window, but offered few additional details. Users interested in updates can join Mozilla's waitlist.

Why this is important:

Firefox adding AI Window makes it the fourth major browser with AI features after ChatGPT Atlas, Perplexity Comet, and Chrome's AI integration.

Mozilla's "opt-in" and "user-controlled" framing positions Firefox as privacy-respecting alternative to competitors. That's consistent with Mozilla's brand but question is whether users want AI browser at all.

Users being able to pick AI model they want to use in AI Window is multi-model strategy similar to Apple's approach with Siri. That avoids vendor lock-in but creates integration complexity.

Being built "in the open" with user input is Mozilla's open-source DNA. That's different from OpenAI and Perplexity shipping products then iterating based on feedback.

Third browsing experience alongside private and classic windows is interesting architecture. AI features contained in separate window, not mixed into main browsing.

Our personal take on it at OpenTools:

Firefox is late to AI browser party and messaging is defensive.

"While others are building AI experiences that keep you locked in conversational loop" is subtle dig at ChatGPT Atlas and Perplexity Comet. Mozilla's positioning as the responsible alternative.

But Firefox has 3% browser market share. Chrome has 65%. Being privacy-respecting and user-controlled didn't win browser wars. Why would it win AI browser wars?

The opt-in approach is smart for existing Firefox users who value privacy. But it's not growth strategy. Users flocking to ChatGPT Atlas and Perplexity Comet want AI-first experience, not optional AI sidebar.

Multi-model support letting users pick their AI is good UX but creates dependency on multiple third-party providers. Mozilla doesn't have its own model so they're aggregating others.

Being built "in the open" with waitlist for updates suggests this is early stage. ChatGPT Atlas and Perplexity Comet are shipping now. Firefox is collecting user input for future feature.

The third window architecture is clever. Keep AI separate from main browsing so users who don't want AI aren't forced into it. But it also makes AI feel bolted-on rather than integrated.

Mozilla's survival strategy has been positioning as an ethical alternative to Chrome. Now they're trying the same positioning against AI browsers. The question is whether "respectful AI browsing" is compelling enough to drive adoption.

This Week in Workflow Wednesday #45: Scaling Smarter – Growth-Focused AI Strategies

This week, we’ll show you how to use AI Tools for clear, actionable growth insights.

Workflow #1: Auto-Summarize Growth Analytics with Claude.ai
Step 1: Export your weekly metrics from Google Analytics, Beehiiv, or Stripe as a simple .csv or screenshot.
Step 2: Drop it straight into Claude and ask:

  1. Bot Butcher - An anti-spam tool designed to protect your inbox from unwanted messages

  2. TTcare - An AI-powered mobile app that helps pet parents monitor the health of their dogs and cats

  3. Alter AI - A tool that transforms amateur selfies into professional-looking headshots

  4. Convai - A platform to create NPC characters and assets for games

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– The OpenTools Team

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