According to Salesforce's recent research and analysis of 1.5 billion shopper behavior, AI played a major role in the 2024 holiday shopping season.

Salesforce claims in its report that AI tools have helped drive up to $229 billion in sales, or 19 percent of global online sales.

AI tool engagement grew 6% during Christmas 2024

Through a detailed analysis of the behavior patterns of 1.5 billion shoppers worldwide and 1.6 trillion page views, Salesforce found that AI-generated product recommendations, targeted promotions and customer service played a key role in increasing sales during the 2024 Christmas season. And user engagement with these AI tools grew 6% year-over-year, underscoring their growing appeal and influence.

The use of generative artificial intelligence (GenAI) features, including conversational agents, also increased 25% during the holiday season compared to previous months, underscoring the important role they play in guiding and shaping consumer behavior. Mobile e-commerce has further strengthened the influence of AI, with mobile orders accounting for nearly 70% of global online sales.

Caila Schwartz, director of consumer insights at Salesforce, commented, "Those retailers that have adopted AI and digital agents are already seeing the benefits, but these tools will be even more important in the New Year as retailers aim to minimize revenue losses from returns and work to regain favor with consumers."

AI addresses returns challenges and drives social and mobile commerce growth

The record-setting sales season also faced a challenge, with global returns soaring to $122 billion, a 28% increase compared to the same period in 2023. Salesforce attributed the increase in returns to changing consumer habits, such as "alternative shopping" and "try before you buy," which directly led to the increase in returns.

To address this challenge, AI-driven solutions are currently being used to streamline the return process. According to Salesforce's survey data, up to 75% of US consumers have expressed a desire to handle returns through AI agents, with more than one-third of them showing great interest. These tools are expected to play a key role in reducing operational stress and maintaining customer loyalty.

The survey shows that social commerce has become another key factor in AI adoption. Platforms such as TikTok Shop and Instagram, which accounted for 20% of global holiday sales, saw their social media referral traffic grow 8% year-over-year. AI algorithms have increased the effectiveness of these platforms by delivering personalized recommendations and ads to shoppers.

Meanwhile, mobile devices continued to lead holiday sales, generating $842 billion worldwide and $195 billion in the United States. Mobile orders peaked on Christmas Day, accounting for 79% of all transactions. In addition, AI-assisted chatbots and virtual agents are gaining popularity in the customer service space, and their usage has increased significantly by 42% year-on-year.

UK retailers have accelerated their adoption of AI technology

At the same time, British retailers are increasingly embracing AI technology, with applications that extend far beyond customer service to improve operational efficiency, personalize the customer experience, and optimize operational processes.

A recent study conducted by IMRG and Scurri shows that 57% of UK online retailers are already leveraging GenAI for content creation in 2024, and 31% are using AI-powered product search to enhance customer engagement. By 2025, 75% of UK retailers plan to use AI to enhance their marketing efforts, and 42% intend to implement AI-powered product information management systems to streamline operations.

Tesco, for example, has been expanding its use of AI to improve customer engagement and operational efficiency. By analyzing data from its loyalty card program, the company aims to provide personalized product recommendations, encourage healthier purchasing choices, provide a more personalized shopping experience, and strive to reduce waste of resources.

Another innovative practice comes from Must Have Ideas, an online retailer specializing in selling cleaning and household goods, which has launched an AI TV shopping channel powered by its proprietary software Spark that can automatically execute a 24/7 programming schedule based on real-time inventory status and external market factors, thereby significantly reducing operating costs. It also significantly improves customer engagement.