Black Friday in the U.S. saw unprecedented online sales this year, with generative AI chatbots being a key driver in boosting retail website traffic.
What Happened: The online expenditure during the shopping festival hit $10.8 billion, a 10.2% jump from 2023.
According to a report by Barron's, AI chatbots, engineered to simulate human interactions to aid shoppers, played a crucial role in this year's online shopping surge, leading to an 1,800% explosion in retail website traffic compared to the previous year.
Caila Schwartz, the director of consumer insights at Salesforce, told the outlet, "Digital retailers who are using generative AI and agents in their customer service experiences saw a nine percent higher conversion rate compared to those who are not."
Moreover, Salesforce's data revealed a 31% annual growth in the utilization of AI-powered online chat services on Black Friday. The firm's data also showed U.S. Black Friday online sales at $17.5 billion, a 7% year-over-year increase.
In contrast, traditional Black Friday shopping continued its downward trend, with in-store traffic falling 3.2% nationwide compared to 2023. Mobile sales made up 55% of all online sales, amounting to $5.9 billion, a 12.1% year-over-year increase, reports Barron's.
With Cyber Monday around the corner, both Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) anticipate sustained online shopping growth, with Adobe predicting a 7% rise in online spending during Cyber Week compared to last year.
Why It Matters: The record-breaking online sales on Black Friday 2024 underscore the transformative impact of AI technology on the retail industry.
The significant role of AI chatbots in driving online traffic and conversion rates highlights the growing importance of digital customer service experiences in boosting sales. The continued decline in physical store shopping and the rise in mobile sales further emphasize the shifting consumer shopping habits towards online platforms.
As the retail industry adapts to these changes, the use of AI and other digital tools will likely become increasingly critical in enhancing customer experiences and driving sales growth.