AI played a major role during the 2024 holiday shopping season, influencing $229 billion, or 19%, of global online sales according to Salesforce. Analyzing data from 1.5 billion shoppers, they found that AI-enhanced product recommendations and customer service drove increased engagement, with mobile orders making up nearly 70% of sales. There was also a significant rise in returns, totaling $122 billion, prompting retailers to use AI solutions to streamline the process. In the UK, businesses are expanding AI use across operations, with 57% of online retailers adopting generative AI and 75% planning to implement AI for Marketing by 2025, showcasing the growing importance of AI in retail.
AI’s Impact on 2024 Holiday Shopping: $229 Billion in Global Sales
In 2024, artificial intelligence played a crucial role in reshaping the holiday shopping experience. According to Salesforce, AI tools helped influence an impressive $229 billion, accounting for 19% of all global online sales. A recent Salesforce report analyzed data from 1.5 billion shoppers and 1.6 trillion page views, highlighting that AI-generated product recommendations and targeted promotions drove significant increases in holiday season engagement.
During this period, AI features like conversational agents saw a 25% rise in usage compared to previous months. This trend showcases how AI is enhancing consumer behavior. Additionally, mobile commerce surged, with mobile orders making up nearly 70% of all online sales globally.
Salesforce’s consumer insights director, Caila Schwartz, emphasized that “Retailers who have embraced AI are already seeing the benefits.” As businesses strive to reduce losses from returns and reconnect with customers, these AI tools are set to become even more critical in the coming year.
The holiday season also brought challenges, with global returns skyrocketing to $122 billion, a 28% increase from 2023. This surge is attributed to new shopping habits like bracketing, where consumers buy multiple items to try on at home. To tackle the challenges of returns, Salesforce reported that 75% of U.S. shoppers are interested in using AI agents to navigate return processes, a move that could save retailers significant operational strain.
Social media also emerged as a powerful sales driver. Platforms like TikTok Shop and Instagram contributed to 20% of global holiday sales, with social commerce referral traffic rising by 8% year-over-year. AI algorithms enhanced the shopping experience on these platforms with personalized recommendations.
In the UK, retailers are increasingly integrating AI into their operations to enhance customer experiences and streamline processes. A recent IMRG and Scurri study revealed that 57% of UK online retailers used generative AI for content creation in 2024, while 42% are looking to implement AI tools for product information management.
Leading retailers like Tesco are using AI to analyze data from customer loyalty programs to offer personalized product recommendations. Meanwhile, Must Have Ideas has launched an AI-powered TV shopping channel that automates programming based on real-time stock levels, showcasing innovation in the retail space.
As AI continues to evolve, its impact on shopping habits and customer engagement will only grow stronger, paving the way for a smarter retail future.
Tags: AI in Retail, 2024 Holiday Shopping, Salesforce Report, Mobile Commerce, UK Retailers, AI Tools
What are AI tools and digital agents?
AI tools and digital agents are software programs that use artificial intelligence to help people shop online. They can provide personalized recommendations, answer questions, and make the shopping experience easier and more enjoyable.
How do these tools help boost holiday sales?
These tools help boost holiday sales by making it easy for shoppers to find what they want. They analyze customer preferences and behavior to suggest products, making it more likely that people will buy during the holiday season.
Are AI tools safe to use while shopping online?
Yes, AI tools are generally safe to use. They are designed with security features to protect your personal information. However, it’s always good to check the privacy policies of the websites or apps you use.
Can I use AI tools on my smartphone?
Yes, most AI tools and digital agents work well on smartphones. Many online retailers have apps that include these features, making it easy to shop from anywhere during the holiday season.
Will using AI tools improve my shopping experience?
Definitely! Using AI tools can make your shopping experience faster and more efficient. They can help you find the best deals, suggest gift ideas, and answer any questions you have while shopping online.