Fanatics has rolled out an OpenAI-powered shopping feature across its online stores that uses AI to recommend coordinated outfits, aiming to make its large merchandise catalog easier to navigate.
The updated "Shop the Look" feature is live on Fanatics.com and the official NFL, NBA, MLB and NHL online stores, according to OpenAI, which announced the partnership Monday.
Fanatics sells more than 1.5 million products and adds more than 1,000 a week. Justin Tsai, chief product officer of Fanatics Commerce, told CNBC that shopping sessions routinely topped 30 minutes as customers searched the catalog.
The feature suggests matching items on product pages, such as gear to go with a team jersey.
In a test across about 30,000 MLB products, it drew 10% more views of recommended items than the previous version, Fanatics said. The companies didn't say whether that led to more sales.
AI Shopping Race Heats Up
The rollout comes as retailers increasingly experiment with AI to help consumers discover products and navigate large online catalogs.
OpenAI has been developing shopping capabilities within ChatGPT, including product discovery and comparison tools. CNBC reported Monday that the company is moving away from its Instant Checkout effort and working directly with retailers on dedicated apps within ChatGPT.
The Fanatics partnership takes a different approach, integrating AI recommendations into the retailer's existing shopping experience rather than requiring customers to shop through a separate interface.
Rosemary DeAragon, OpenAI's head of industry go-to-market, told CNBC that AI could help retailers match products more precisely to shoppers' needs. For sports merchandise, that also means accounting for team and player affiliations, rather than suggesting items that may be incompatible with a fan's preferences.
The business opportunity is significant for Fanatics. CEO Michael Rubin told CNBC earlier this month that the company's commerce business is expected to generate more than $7 billion in revenue this year, compared with roughly $5.5 billion for its collectibles business, which includes Topps trading cards.
Building AI Shopping Recommendations
OpenAI's Codex helped Fanatics engineers develop tools to organize product data, identify compatible merchandise and evaluate recommendations, according to the companies.
The teams built and tested an initial set of 50 product looks in less than 24 hours, then refined the system over the following days. Fanatics approved a minimum viable product that same week before expanding the approach across thousands of products.
The company said it can use the system to assemble coordinated looks featuring items such as hats, socks and other accessories to complement a jersey. That approach could also help Fanatics respond more quickly to demand for newly released merchandise, including championship apparel, which can be difficult to incorporate into traditional photo shoots and curated outfit displays.
Fanatics also uses OpenAI's ChatGPT Work and Codex across its corporate operations, commerce, collectibles, and betting and gaming businesses, the companies said.
