Introduction of GenAI in Online Shopping

A new report estimates that AI will be a larger-than-ever part of the online shopping process during Amazon’s Prime Day sale. Amazon’s annual sale is predicted to drive $23.8 billion in online spending across US e-commerce retailers, as other businesses run their own competing sales alongside the popular shopping event.

Adobe, whose e-commerce division regularly releases estimates for online shopping events, offers a view into online commerce by tracking transactions online. The firm’s analysis encompasses over 1 trillion visits to US retail websites, including 100 million SKUs across 18 product categories.

Role of GenAI in Prime Day Sales

This year, Adobe forecasts that Prime Day will be the equivalent of “two Black Fridays.” The $23.8 billion spent over the four-day period will represent 28.4% year-over-year growth and $9.6 billion more than the comparable period last year. Mobile will be a large part of that equation, accounting for more than half (52.5%) of sales, but this year, generative AI will also play a role.

During the Prime Day event, Adobe estimates that traffic from generative AI sources will increase 3,200% year-over-year. This is still a much smaller source than other channels, like paid search and email, but Adobe believes it will continue to grow as consumers see the value in using AI for shopping.

Consumer Behaviour and GenAI

The company noted that gen AI-powered chatbots and browsers saw an initial surge in use during the holiday season, when traffic from those sources jumped 1,300% compared with the prior year. The company also cited a survey of 5,000 US consumers, which indicated that people were using gen AI for research, product recommendations, finding deals, getting gift ideas, finding unique products, and creating shopping lists.

Of those who used gen AI, 92% said it enhanced their purchase experience, and 87% said they are more likely to use AI for larger or more complex purchases. AI providers have been capitalizing on this trend by integrating AI into shopping, as Google has with Gemini-enhanced product search, and OpenAI has with the addition of shopping features in ChatGPT, for example.