A recent report highlights the increasing significance of artificial intelligence (AI) in the online shopping experience, particularly during Amazon’s highly anticipated Prime Day sale, which commenced on Tuesday morning. This year, Prime Day spans four days, from July 8 to July 11, and is projected to generate a staggering $23.8 billion in online spending across U.S. e-commerce retailers. As competition heats up, various businesses are launching their own sales alongside this popular shopping event.
Adobe, a leader in e-commerce analytics, regularly provides insights into online shopping behaviors during major sales events like Black Friday. Their analysis is based on tracking over 1 trillion visits to U.S. retail websites, covering more than 100 million stock-keeping units (SKUs) across 18 different product categories. This year, Adobe estimates that Prime Day will be equivalent to “two Black Fridays,” reflecting the growing trend in online spending.
The anticipated $23.8 billion in spending represents a remarkable 28.4% year-over-year growth and an increase of $9.6 billion compared to the same period last year. A key driver of this boom is the surge in mobile shopping, expected to account for over half (52.5%) of total sales. However, the role of generative AI is set to make a notable impact this year as well.
Adobe forecasts that traffic generated from generative AI sources will see an astonishing 3,200% year-over-year increase during the Prime Day event. While this remains a smaller segment compared to traditional channels like paid search and email, Adobe believes that the value consumers find in using AI for shopping will lead to continued growth in this area.
According to a survey of 5,000 U.S. consumers, 55% reported using generative AI for research, while 47% utilized it for product recommendations. Other popular uses included finding deals (43%), generating gift ideas (35%), discovering unique products (35%), and creating shopping lists (33%). Impressively, 92% of respondents who engaged with generative AI stated that it enhanced their shopping experience, with 87% indicating a higher likelihood of using AI for larger or more complex purchases.
AI providers are seizing this trend by incorporating AI technologies into the shopping experience. Notable advancements include Google’s Gemini-enhanced product search and OpenAI’s integration of shopping features in ChatGPT. These innovations aim to streamline the shopping process and enhance customer satisfaction.
Adobe's forecast indicates that consumers participating in Prime Day this year will prioritize discounts, particularly in the apparel category, which is expected to feature some of the most significant deals. Additionally, the back-to-school shopping season is anticipated to further drive sales during this event.
In conclusion, as AI continues to shape the online shopping landscape, its integration during events like Amazon's Prime Day showcases the evolving relationship between technology and consumer behavior. With significant spending projected and an increasing reliance on AI tools, the future of e-commerce looks promising.
