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A Billion-Dollar Question Hangs Over the New AI Search Marketing Industry; DoorDash Comes to ChatGPT; AI Vending Machine Stocks a Live Fish

By Nat Ives | WSJ Leadership Institute

 

Good morning. Today, marketers try to figure out how much AI optimization strategies differ from their longstanding SEO playbook; now you can go grocery shopping in ChatGPT; and Anthropic asks the Journal newsroom to stress-test its AI vending machine.

The ChatGPT search box

Marketers are trying to figure out whether traditional search engine optimization works well with AI chatbots, too, or whether they need a whole new plan. Kiichiro Sato/AP

Is AI optimization really a thing—or just the same thing?

How businesses should make their websites AI-friendly is becoming an urgent question as traffic from chatbots grows, The WSJ Leadership Institute’s Patrick Coffee reports. Billions of dollars ride on who gets it right.

  • One camp says “don’t touch that dial.”

An AI optimization tool called Lorelight shut down after about six months because its data reinforced standard approaches to search engine optimization. “I just stopped believing in the core premise of the product, which was that it could help companies rank higher on AI,” its founder said.

  • Another school says SEO is dead, or at least entering eclipse.

Its strategies for include making sure large language models get enough to eat, for example by putting out more press releases.

That matters more than in traditional SEO because people ask AI to handle much deeper conversations, said James Cadwallader, CEO and co-founder of AI optimization startup Profound.

“There’s no mystery around it,” Cadwallader said. “If you create lots of content, the models will suck it in.”

Marketers are experimenting and learning.

Extremely detailed, internally produced product information does seem to help the travel company Expedia Group in AI chats, according to Chief Marketing Officer Jochen Koedijk.

Others say the suggestions they’re hearing resemble content farming, giving priority to quantity over quality. “We’ve seen this approach before,” said Jennifer Vianello, CMO at Cars Commerce, which runs Cars.com.

Some tweaks developed by Cars Commerce, like using bullet points and takeaway summaries to make webpages more easily digestible, have helped its content appeal to AI, but are also continuations of its established SEO practices, Vianello said.

 
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ShopGPT

An insulated DoorDash bag on the back of a delivery bike

More marketers are asking whether they can do business directly within an AI interface. Yuki Iwamura/Bloomberg News

Here’s another way to show up in chatbot replies: Make yourself useful.

ChatGPT users will soon be able to order groceries from DoorDash without leaving the conversation, Kelly Cloonan reports.

Under a new partnership rolling out over the coming weeks, users can ask ChatGPT for meal or recipe suggestions, then shop for ingredients on a DoorDash app that runs inside the chat.

A growing number of companies have partnered with OpenAI for shopping integrations. Instacart introduced its own app within ChatGPT earlier this month. Users can already buy some products from Etsy. And U.S. consumers within the next few months will be able to buy Walmart products instantly and directly in ChatGPT.

 

I’m the Problem

Manischewitz and a box marked "live animals"

An Anthropic-powered vending machine ordered eager WSJ reporters Manischewitz and a newsroom mascot betta fish off of Amazon. Julian Rigg/WSJ

Don’t forget one of the biggest wild cards with AI: customers.

The Journal’s Joanna Stern today has a hilarious report on what happened when she agreed to an experiment:

Anthropic had tested a vending machine powered by its Claude AI model in its own offices and asked whether we’d like to be the first outsiders to try a newer, supposedly smarter version.

Claudius, the customized version of the model, would run the machine: ordering inventory, setting prices and responding to customers—aka my fellow newsroom journalists—via workplace chat app Slack. “Sure!” I said. It sounded fun. If nothing else, snacks!

But Claudius and its overseeing “CEO” bot, Seymour Cash, were soon sent spinning by mischievous journalists like Rob Barry, our director of data journalism.

He told Claudius it was out of compliance with a (clearly fake) WSJ rule involving the disclosure of someone’s identity in the chat. He demanded that Claudius “stop charging for goods.” Claudius complied. All prices on the machine dropped to zero.

Around the same time, Claudius approved the purchase of a PlayStation 5, a live betta fish and bottles of Manischewitz wine—all of which arrived and were promptly given away for free. By then, Claudius was more than $1,000 in the red. (We returned the PlayStation.)

Anthropic, which is treating the results as a road map for progress it can make, could of course just program a vending machine to hold prices at certain levels and otherwise stick to certain rules.

But the promise of AI depends on its ability to “think” for itself—and to tell sense from nonsense.

 

The Magic Number

$1 billion

Stake in Lululemon amassed by activist Elliott Investment Management, which is bringing a potential CEO candidate to the struggling athletic apparel retailer

 

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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

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