When Generative AI Meets E-commerce: A Game-Changer for Retailers?
When you think of AI chatbots on retailer sites, you may think of the annoying pop-up that typically interrupts your shopping experience. However, people are now turning to generative AI chatbots to help inform buying decisions, which, in turn, is bringing more traffic from those AI tools to retailers, according to new Adobe Analytics data.
Using Gen AI for Online Shopping
Of the respondents, 39% have used generative AI for online shopping. The top use cases were conducting research, receiving product recommendations, seeking deals, and getting present ideas. Most of the respondents (53%) intend to use AI for online shopping this year. These use cases have materialized into real gains.
The Uptick in Traffic
During the holiday shopping season, Adobe tracked the first surge in generative AI traffic to US retail sites, which was measured by shoppers clicking on a link from one of these AI assistants. Between Nov. 1 and Dec. 31, 2024, traffic from generative AI sources increased by 1,300% from the year prior, increasing a whopping 1,950% on Cyber Monday alone.
Other Industries Seeing an Uptick
As seen by the graph below, travel has seen the biggest uptick out of the other industries, increasing by 1,700% from July 2024 to February 2025, including visits to US travel, leisure, and hospitality sites. The retail and banking industries saw an increase of 1,200%.
Gen AI Shopper Behaviors
Once the users leave their AI chatbot interface, there are also some wins there, with 8% higher engagement, 12% more pages per visit, and a 23% lower bounce rate. However, in terms of conversion, the traffic from generative AI sources is 9% less likely to convert compared to alternatives. Notably, that number is up from 43% in July 2024, showing consumers are rapidly warming up to the idea.
Conclusion
The rise of generative AI in e-commerce is a game-changer for retailers. With 53% of respondents intending to use AI for online shopping this year, the potential for increased traffic and conversions is significant. By understanding the use cases and behaviors of gen AI shoppers, retailers can better engage with these consumers and drive long-term, repeat purchases.
FAQs
Q: What is the purpose of generative AI in e-commerce?
A: Generative AI is used to help inform buying decisions and provide personalized product recommendations, among other use cases.
Q: What are the top industries seeing an uptick in traffic from gen AI sources?
A: Retail, travel, and banking are the top industries seeing an uptick in traffic from gen AI sources.
Q: What is the conversion rate of traffic from gen AI sources?
A: The conversion rate of traffic from gen AI sources is 9% less likely to convert compared to alternatives.
Q: What is the potential impact on retailers?
A: The rise of gen AI in e-commerce presents a significant opportunity for retailers to drive increased traffic and conversions. By understanding the use cases and behaviors of gen AI shoppers, retailers can better engage with these consumers and drive long-term, repeat purchases.
