GenAI as a shopping assistant set to explode during Prime Day sales
As Amazon’s highly anticipated Prime Day sale kicked off, a new report highlights the transformative role of artificial intelligence, particularly generative AI (GenAI), in shaping the online shopping experience. Predicted to drive an astounding $23.8 billion in online spending across U.S. e-commerce retailers over its four-day span (July 8-11), this year’s event is poised to witness an unprecedented integration of AI into consumer purchasing journeys.
According to Adobe’s e-commerce division, a leading authority in tracking online transactions and consumer behavior across over a trillion retail website visits, Prime Day 2024 is equivalent to “two Black Fridays.” This colossal figure represents a remarkable 28.4% year-over-year growth, signifying an additional $9.6 billion in spending compared to the same period last year. Mobile devices are expected to remain dominant, accounting for over half (52.5%) of all sales, yet it is generative AI that is set to steal the spotlight.
Adobe’s analysis forecasts an astonishing 3,200% year-over-year surge in traffic originating from generative AI sources during Prime Day. While still a nascent channel compared to established avenues like paid search and email, this exponential growth underscores AI’s rapidly escalating value proposition for shoppers. The firm noted a significant precursor to this trend during the 2024 holiday season, where GenAI-powered chatbots and browsers saw a 1,300% jump in traffic between November 1 and December 31.
A recent survey involving 5,000 U.S. consumers further validates AI’s utility in shopping. A majority of respondents reported using GenAI for crucial aspects of their shopping process: 55% for general research, 47% for personalized product recommendations, 43% for finding optimal deals, 35% for generating gift ideas, 35% for discovering unique products, and 33% for streamlining shopping list creation.
The impact on the consumer experience is overwhelmingly positive, with 92% of GenAI users affirming that it enhanced their purchase journey. Furthermore, 87% indicated a higher likelihood of leveraging AI for more substantial or complex purchases, signaling a deepening trust in AI’s capabilities beyond simple transactions.
This burgeoning trend has not gone unnoticed by major AI developers. Tech giants like Google have already integrated AI into their shopping platforms, exemplified by Gemini-enhanced product search, offering users more intelligent and personalized results. Similarly, OpenAI has augmented ChatGPT with advanced shopping features, empowering its chatbot to assist directly with product discovery and purchase decisions.
As consumers navigate Prime Day, Adobe’s forecast indicates a primary focus on discounts, with apparel anticipated to feature the most significant deals. Additionally, back-to-school necessities are expected to be a major sales driver, highlighting practical applications for AI-assisted shopping in everyday life.
The rise of generative AI as a shopping assistant marks a pivotal shift in e-commerce, offering unprecedented levels of personalization, efficiency, and informed decision-making. As the Prime Day sales unfold, it will serve as a definitive testament to AI’s indispensable role in the future of online retail.
