As **AI chatbots** and **autonomous AI agents** become increasingly central to the shopping experience, brands face an urgent challenge: adapt or risk obsolescence in this evolving digital landscape. New Generation, a trailblazing startup based in San Francisco, is stepping up to address this core issue.
Founded by **Harvard Business School** alumni Jonathan Arena and Adam Behrens, New Gen is on a mission to create **AI storefronts**—innovative versions of brand websites designed to dynamically interact with AI chatbots and agents.
The Birth of a New Commerce Layer
“Every major technological shift has necessitated a new commerce infrastructure,” Arena stated in a recent interview. “During the dawn of the internet, it was **PayPal**; in the 2010s, it was **Stripe**. With AI emerging as this new frontier, a fresh payment and commerce framework is essential.”
Both founders transitioned from their successful roles—Behrens at Stripe and Arena at Patreon—to kickstart New Gen. By merging Arena’s design acumen with Behrens’ technical expertise, they’ve crafted AI storefronts that promise a “truly bespoke internet for every individual,” making a vision long sought by tech titans finally attainable.
Transforming Consumer Interaction
Imagine a shopper researching yoga accessories within **ChatGPT**; rather than being directed to static blog posts on a retailer’s site, the chatbot could generate tailored offers in **real-time**, provide precise product details, facilitate purchases, and more. The AI storefront seamlessly adapts to vibrant marketplace changes, swiftly updating product listings in response to tariffs or ignited trends influenced by celebrity buzz.
New Gen’s strategic alliance with Visa is part of the latter’s Intelligent Commerce initiative, aiming to empower AI agents to handle transactions on behalf of consumers. Pilot projects are underway with some of the **world’s largest brands** across retail, fashion, travel, and dining sectors.
Navigating Challenges Ahead
Despite the promise of fully autonomous AI agents, a forthcoming PYMNTS Intelligence report highlights that genuine agentic AI is still a work in progress. Many business applications of generative AI still require human oversight for accuracy and process management, even in areas heavily suited for automation, like cybersecurity.
Read More: Agentic AI Vision Meets Reality
Engaging in a Three-Way Conversation
“The foundation for agentic commerce needs to be laid early, especially considering how quickly the technology is advancing.” Behrens emphasized the crucial triadic dialogue between payment networks, brands, and infrastructure—elements that must coalesce for success.
“We envision a future where an agent exists on both sides of the transaction,” Behrens elaborated. Yet, conventional websites often falter as AI agents struggle to navigate outdated elements like pop-ups and inefficient search functionalities.
To prepare brands for an AI-driven commerce landscape, the founders identified two significant hurdles:
1. Outdated Product Management Systems
Many brands still depend on antiquated systems requiring manual tagging. Arena pointed out, “If someone searches for ‘Taylor Swift lipstick’ on your website, a human has to manually add ‘Taylor Swift’ as an attribute.” This is where AI can step in to automate and streamline the process.
2. Shifting Search Paradigms
With **800 million weekly users** on ChatGPT alone, traditional retail websites continue to cling to keyword-based search systems. New Gen’s AI storefront aims to revolutionize how brands handle search queries, moving towards more conversation-driven interactions.
Read More: Visa, Mastercard, PayPal Fuel Agentic AI Commerce Boom
Introducing AI Subdomains
New Gen creates an “**AI subdomain**”—a dedicated microsite like “ai.brand.com” specifically designed to engage AI-driven traffic from tools such as ChatGPT. “Our aim is to provide a separate experience without necessitating a complete overhaul of brands’ traditional websites,” Arena stated.
“What customers see is generated dynamically based on their inquiries,” he added. Their system reindexes each brand’s entire product catalog, combining structured and unstructured data to produce dynamic product pages and tailored recommendations. This innovative data pipeline is accessible via an API for other companies.
Using advanced technologies—**Gemini 2.5** for images, **Claude 4** for prose, and OpenAI’s models for coding—the New Gen team efficiently builds AI storefronts. Brands can customize the experience using a merchant dashboard, adjusting preferences for voice, featured products, and marketing strategies.
In the future, these AI storefronts are slated for integration with major marketplaces like **Shopify** and **WooCommerce**.
Read More: Agentic AI Reshaping the eCommerce Funnel
Additional Insights: Startup New Generation Builds Agent-Friendly Storefronts | The Agentic AI Internet of Tomorrow
