E-Commerce

AI will play a big role in holiday shopping, but some consumers are still lukewarm on the tech

Numbers Game: The numbers you need to know.
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Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

This holiday shopping season figures to be one of the most unique in recent years considering e-commerce retailers are expected to navigate the typical hurdles—returns, discounts, and sales volume—using AI.

Salesforce predicts that global holiday sales will reach $1.19 trillion globally, essentially remaining flat on a year-over-year basis. But the company’s latest report says the “savviest” retailers will use predictive and generative AI to stand out from the competition.

  • Personalized customer service, promotions, and experiential shopping experiences powered by AI will lead to $194 billion in global online holiday spending, according to Salesforce.
  • The report also shared that 17% of shoppers say they’ve used generative AI to inspire purchases.

But consumer sentiment around AI is still fairly complicated. Just over half (51%) of shoppers say that AI is positively affecting their shopping experience, while 77% report preferring brands that offer “personalized recommendations” (a hallmark of generative AI), according to survey data from SAP Emarsys.

  • That study found that nearly a quarter (24%) of consumers worry that AI negatively affects their shopping experience, and 86% want to interact with humans instead.
  • But the improving technology is blurring those lines: Only 27% said they can tell the difference between humans and an AI chatbot when shopping online.

“The benefits of AI in retail can’t be overstated: not just for brands but for customers as well. It’s clear that, at present, shoppers aren’t entirely convinced on AI’s value—but when used responsibly, AI can truly enhance user experience in everything from receiving the right recommendations to easy purchasing processes,” Kelsey Jones, global head of product marketing at SAP Emarsys, said in a statement.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.