AI significantly shaped the 2024 holiday shopping season, new data suggests, with Salesforce reporting that AI-powered tools influenced $229bn, or 19%, of global online sales. According to the company’s analysis of data from 1.5bn global shoppers and 1.6trn page views, AI-generated product recommendations, targeted promotions and customer service were instrumental in driving sales in the Christmas period and represented a 6% year-on-year increase in engagement with such tools.
Generative AI features, including conversational agents, also saw a 25% uptick in usage during the holiday season compared to earlier months, underscoring their role in shaping consumer behaviour. Mobile commerce further amplified AI’s impact, with mobile orders accounting for nearly 70% of all global online sales.
“Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimise revenue losses on returns and reengage with shoppers,” said Salesforce consumer insights director Caila Schwartz.
The record-breaking sales season also brought challenges, with returns surging to $122bn globally, a 28% increase from 2023. Salesforce attributed this rise to evolving consumer habits like bracketing and try-on hauls, which have led to increased volumes of returned merchandise.
AI-driven solutions are now being used to streamline returns processes. Salesforce survey data revealed that 75% of US shoppers are interested in using AI agents for returns, with one-third expressing strong interest. These tools are expected to play a pivotal role in reducing operational strain and preserving customer loyalty.
According to the survey, social commerce has emerged as another key driver of AI adoption. Platforms like TikTok Shop and Instagram contributed to 20% of global holiday sales, with social media referral traffic growing 8% year-over-year. AI algorithms enhanced these platforms’ effectiveness by delivering personalised recommendations and advertisements to shoppers.
Mobile devices continued to dominate holiday sales, initiating $842bn globally and $195bn in the US. Mobile orders peaked on Christmas Day, accounting for 79% of all transactions. AI-assisted chatbots and virtual agents also gained prominence, with their usage for customer service increasing by 42% year-over-year.
UK retailers have been expanding AI integration across operations
Meanwhile, UK retailers are increasingly leveraging AI beyond customer service to enhance efficiency, personalise shopping experiences, and improve operational processes. This growing adoption highlights a shift towards deeper AI integration across various retail functions.
A recent study by IMRG and Scurri revealed that 57% of UK online retailers utilised generative AI for content creation in 2024, while 31% incorporated AI-informed product search to enhance customer interactions. The study further indicates that by 2025, 75% of UK retailers plan to adopt AI to bolster marketing efforts, with 42% intending to implement AI-powered product information management systems to streamline operations.
Leading UK retailers are already demonstrating the potential of AI across different business areas. Tesco, for instance, has been expanding its use of AI to improve customer engagement and operational efficiency. By analysing data from its Clubcard loyalty programme, the company aims to offer tailored product recommendations, encourage healthier purchasing choices, and reduce waste. Tesco CEO Ken Murphy has reiterated the company’s focus on leveraging AI-driven insights to deliver more personalised shopping experiences.
Another innovative example comes from Must Have Ideas, an online retailer specialising in cleaning and homeware products. The company has launched an AI-driven TV shopping channel powered by its proprietary software, Spark. This technology automates 24/7 programming schedules based on real-time stock levels and external market factors, significantly reducing operational costs while boosting customer engagement.
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