AI helps drive record $11.8 billion in Black Friday online spending

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The integration of AI technology has revolutionized online shopping, particularly during peak sales events such as Black Friday. This year, U.S. shoppers spent a record $11.8 billion online, marking a significant 9.1% increase from the previous year, as reported by Adobe Analytics. The boost in online spending is largely attributed to AI-powered shopping tools that enabled consumers to navigate the marketplace more efficiently, effectively circumventing traditional brick-and-mortar stores.

Adobe Analytics, which tracks visits to online retail websites, noted an impressive 805% year-over-year rise in AI-driven traffic to U.S. retail sites. Such metrics illustrate how tools like Walmart’s Sparky and Amazon’s Rufus, launched recently, have fundamentally changed shopping habits. According to Suzy Davidkhanian, an analyst at eMarketer, consumers are utilizing these innovations to reach their desired products more swiftly, reducing the stress often associated with gift giving.

A survey conducted by Adobe revealed that nearly half of respondents had either used or intended to use AI tools for online shopping this season. This rising trend correlates with specific hot-selling items on Black Friday, including beloved products such as LEGO sets, Pokémon cards, and popular gaming consoles like the Nintendo Switch and PlayStation 5. Additionally, classic appliances like Apple AirPods and KitchenAid mixers flew off the shelves.

The global figures are equally impressive, with AI and agents influencing a staggering $14.2 billion in online sales on Black Friday alone. Out of this remarkable total, $3 billion was generated from the U.S. market, showcasing the significant role artificial intelligence plays in modern commerce.

Salesforce, another key player in the analytics market, reported that U.S. consumers overall spent $18 billion on Black Friday, representing a 3% increase compared to last year. The luxury apparel and accessories sector emerged as one of the most popular categories amid this spending surge. However, it is essential to contextualize these numbers within the prevailing economic conditions. Consumers faced price hikes that impacted their purchasing behavior, evident from the decrease in the number of items purchased at checkout.

Salesforce’s data revealed a 1% decline in order volumes and a 2% decrease in units per transaction year-over-year, while the average selling price was up by 7%. Caila Schwartz, the director of consumer insights at Salesforce, indicated that the rising average selling price reflects two major factors: tariffs and a significant increase in spending among higher-income consumers. This trend illustrates a noticeable growth in the luxury market, which was particularly dominant during the holiday shopping season.

The significant uptick in online spending this Black Friday sets a promising stage for Cyber Monday, projected to generate $14.2 billion in sales, marking a 6.3% rise from the previous year. With consumers anticipating enticing discounts, especially in electronics where anticipated mark-downs could reach 30% off, further traction is expected in various product categories like apparel and computers.

In summary, the terrific spike in online spending during Black Friday not only signifies the growing reliance on AI-driven technology in the retail sector but also portrays the shifting dynamics of consumer behavior in response to current economic factors. As businesses strive to adapt, continued advancements in AI could pave the way for even greater efficiencies and consumer satisfaction in the future.

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