AI chatbots drive online holiday spending to record level

Online holiday shopping reached a record $241.4 billion during the 2024 season. It was fueled in part by generative AI-powered chatbots that increased traffic to e-commerce sites, according to Adobe Analytics. 

Online spending between Nov. 1 and Dec. 31 rose nearly 9% year over year, according to the latest figures from Adobe Analytics. For 15 days during the shopping period, spending reached more than $4 billion in a single day, up from 11 days in 2023. 

For its analysis on U.S. e-commerce, Adobe analyzes commerce transactions online, covering over 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 product categories. 

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As part of its analysis, Adobe also found that traffic to retail sites from generative AI-powered chatbots, when shoppers click on a link to a retail site, rose by 1,300% compared with the year prior. On Cyber Monday, traffic rose 1,950% year over year because of these chatbots. 

This data underscores the value that such bots are playing as shopping assistants, according to Adobe. 

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In a recent Adobe survey of 5,000 U.S. consumers, 70% of respondents who used generative AI for shopping said it enhances their experience. About 20% of respondents turn to such technology to find the best deals, according to the data. Just under 20% use it to find specific items online and 15% use it for brand recommendations. 

Adobe also found that shoppers leaned on mobile devices for shopping more than ever before, with smartphones driving more than 54% of online purchases. Nearly 80% of buy now, pay later transactions were made through a smartphone.

Adobe Digital Insights lead analyst Vivek Pandya said the season proved that "e-commerce is being reshaped by a consumer who now prefers to transact on smaller screens and lean on generative AI-powered services to shop more efficiently." 

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Retailers are also delivering "new services and experiences that capture the attention of consumers, many of whom are now shopping online in different ways," Pandya said.