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Square, the point-of-sale unit of the payments provider Block Inc., said early Wednesday it is plunging head-first into AI in an effort to build business for its client merchants. The company said it has adopted an app for OpenAI Group’s ChatGPT and a plugin for Anthropic’s Claude technology to help merchants process payments but also to extend their reach through social networks and marketplaces.
The move comes as consumers increasingly use AI to suss out where to find products and conduct comparisons, according to Square. The company cites statistics from Nielsen IQ indicating more than 42% of consumers have adopted AI technologies to find new products and run product comparisons
Square’s integrations with the two major AI technologies are the beginning of a full-throated AI push, the San Francisco-based payments giant says. It is talking to Amazon to help merchants work with Alexa+, which allows users to engage in conversational interactions rather than use commands. And it has also begun bringing the technology to merchants. One early adopter of Square’s new push is Partners Coffee, a coffee producer in Brooklyn. The shop says it sees AI is building discoverability among customers and enhancing the store’s efficiency, according to Square.
The new ChatGPT and Claude offerings arrive without requiring merchants to create or maintain any separate technology or to sign new contracts or pay AI-related fees, Square says.
Square’s full-throated plunge into AI follows its launch in April of its Managerbot technology in an open beta. That feature is part of the Square Dashboard and monitors businesses in real time to offer recommendations on inventory, staffing, and marketing.
The stress on AI also follows a number of notable merchant wins Square has racked up in recent weeks, including Sherwin-Williams, Laduree Canada, Magnolia Soap & Bath Co., and the restaurant chain The Hat.
