Retailers Turn to AI for Holiday Sales
- Shifting Strategies in Online Shopping
Major U.S. retailers are adjusting their holiday marketing approaches as artificial intelligence becomes part of the shopping journey. While the season’s projected $253 billion in online sales will still largely flow through websites and search engines, chatbots such as OpenAI’s ChatGPT and Google’s Gemini are now influencing consumer choices. These tools can provide product descriptions, compare prices, and even facilitate purchases directly within large language models. As a result, companies are exploring new ways to ensure their products are visible to AI-driven recommendations.
Generative engine optimization platforms are emerging to meet this demand. Brian Stempeck, chief executive of Evertune.ai, said brands that once published a handful of blog posts monthly are now producing hundreds to improve discoverability. His company, which works with apparel and shoe firms, charges about $3,000 per month for services designed to make websites accessible to AI systems. Traditional advertising relied on Google and Meta placements tied to search phrases or user clicks. Without direct advertising options inside major AI tools, retailers are experimenting with frequent blog updates and discussions on platforms like Reddit.
AI Traffic and Consumer Intent
Retailers are also building websites invisible to human shoppers but optimized for AI scrapers, automated tools that collect data for platforms such as ChatGPT and Gemini. These scrapers feed information into the models, which then generate gift suggestions and product recommendations. Early figures indicate the impact is significant: Adobe Analytics reported that AI-driven traffic rose 830% year-over-year in the first 23 days of November. Shoppers arriving via AI services were 30% more likely to complete purchases compared to those using traditional search engines.
Despite this growth, traffic from generative AI remains small relative to overall activity. Sensor Tower data showed that ChatGPT referrals to Amazon, Walmart, and eBay in October accounted for less than 1% of each site’s traffic. EBay noted that while AI referrals are limited, visitors arriving through agentic AI demonstrate strong purchase intent. Walmart declined to comment on the trend. Nevertheless, retailers see potential in cultivating this emerging channel.
Retail Experiments with AI Integration
Brooklinen, a bed linen company, is working with social media influencers to highlight its towels and comforters on platforms such as Facebook, YouTube, and TikTok. AI scrapers extract information from product reviews and transcripts of these posts, increasing the likelihood of inclusion in chatbot responses. The company has also submitted its $199 comforter for awards from publications like the New York Times’ Wirecutter to improve visibility in AI-generated suggestions. Brooklinen’s Chief Operating Officer Rachel Levy acknowledged that traffic from agentic AI remains minimal, partly because Gen Z, the largest user group of tools like ChatGPT, has less purchasing power than older generations.
Other firms are experimenting with voice assistants. Miami-based hair care company R+Co is buying ads on Amazon’s Alexa, targeting questions posed to its Rufus agent. Google has introduced AI features that allow shoppers to track prices and purchase goods, provided retailers’ products are accessible to its scrapers. Lilian Rincon, vice president of product for Google Shopping, explained that factors such as store location and retailer quality influence which links are recommended. Google is currently testing ads in AI Mode in the U.S., though not within the Gemini app, and existing Shopping and Performance Max campaigns can appear in AI Mode during trials.
Amazon is also investing in AI-driven shopping. CEO Andy Jassy said during the company’s October earnings call that customers using Rufus are 60% more likely to buy products. Walmart and Target have announced plans to launch apps enabling direct shopping through chatbots. These developments highlight how major retailers are adapting to a landscape where AI plays a growing role in consumer decision-making.
A broader industry trend shows that AI referrals, though still small, often bring higher-quality traffic. Research from Adobe and Sensor Tower suggests that shoppers guided by AI are more decisive and more likely to complete purchases. This pattern may indicate that while overall numbers are modest, the influence of AI on retail behavior could expand rapidly as adoption grows.
