GenAI Poised to Become Major Shopping Assistant During Prime Day Sales

A new report projects that artificial intelligence (AI) will play an unprecedented role in online shopping during Amazon's Prime Day sale, which launched on Tuesday. This year's four-day event (July 8-11) is expected to generate $23.8 billion in online spending across U.S. e-commerce retailers, as many businesses run competing promotions alongside the popular shopping holiday.

Adobe, whose e-commerce division regularly provides estimates for major online shopping events like Black Friday, offers insights into digital commerce by monitoring online transactions. The company's analysis draws from over 1 trillion visits to U.S. retail sites, covering 100 million unique products across 18 categories.

Adobe predicts this year's Prime Day will be comparable to "two Black Fridays." The projected $23.8 billion in spending over the four days represents a 28.4% increase from the previous year and is $9.6 billion higher than the same period in 2023.

Mobile shopping is expected to drive a significant portion of sales, accounting for more than half (52.5%). Additionally, generative AI is set to make a notable impact this year.

Adobe estimates that traffic from generative AI sources will surge by 3,200% compared to last year's Prime Day. While still a smaller channel compared to paid search or email, Adobe believes AI's influence will grow as more shoppers recognize its value.

The company observed an initial spike in the use of AI-powered chatbots and browsers during the 2024 holiday season, when traffic from these sources jumped 1,300% year-over-year from November 1 to December 31.

A survey of 5,000 U.S. consumers highlighted how people are using generative AI for shopping: product research (55% of respondents), personalized recommendations (47%), deal hunting (43%), gift inspiration (35%), discovering unique items (35%), and creating shopping lists (33%).

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Among those who used generative AI, 92% reported an improved purchasing experience, and 87% said they are more inclined to use AI for larger or more complex purchases.

AI providers are tapping into this trend by integrating shopping capabilities into their platforms. Examples include Google's Gemini-enhanced product search and OpenAI's shopping features in ChatGPT.

According to Adobe's forecast, shoppers this Prime Day will be highly focused on discounts, with apparel offering the deepest deals. Back-to-school shopping is also expected to drive significant sales.