During the 2024 holiday season, the adoption of AI-powered chatbots significantly improved the online shopping experience for U. S. consumers, driving a notable increase in sales. According to a Salesforce report, these conversational AI tools helped shoppers with purchases and returns, resulting in nearly 4% year-over-year online sales growth—surpassing Salesforce’s earlier 2% forecast. U. S. online sales rose to $282 billion from $272 billion during November 1 to December 31, 2024, despite retailers reducing deep discounts. This robust performance signals a shift in consumer behavior, with more shoppers relying on AI tools to navigate the busy holiday market. Salesforce’s analysis of 1. 6 trillion page views revealed a 42% surge in AI chatbot usage compared to the prior year. These tools provided personalized assistance, product recommendations, and real-time support throughout consumers’ shopping journeys. Globally, AI-influenced sales climbed to $229 billion, up from $199 billion in 2023, reflecting widespread AI adoption by retailers aiming to engage digitally savvy customers worldwide. AI integration enhances customer service, promotes targeted offers, and supports loyalty programs attracting bargain hunters and trend-conscious buyers. However, the season also saw a significant rise in product returns, increasing to 28% in 2024 from 20% in 2023. Caila Schwartz, Salesforce’s Director of Consumer Insights, expressed concern that higher returns could diminish retailers’ profit margins and stressed the importance of efficient returns management to maintain profitability.

She noted that retailers effectively using AI agents are already benefiting and that these technologies will be critical in 2025 for reducing revenue losses from returns and improving customer re-engagement, which can help sustain loyalty and maximize lifetime value. An emerging consumer trend was the dominance of smartphones for purchases, especially on Christmas Day’s last-minute shopping surge. Approximately 79% of all holiday online orders were placed via mobile devices, underscoring the necessity for retailers to provide seamless, mobile-optimized shopping experiences. Additionally, social media platforms like TikTok Shop and Instagram played a vital role, accounting for 14% of all e-commerce traffic during the season. This rise in social commerce highlights social media’s growing influence on purchasing decisions and the need for retailers to maintain strong digital presences across multiple platforms. The 2024 holiday season demonstrated that leveraging innovative technologies such as AI chatbots and social commerce delivers tangible business benefits. Retailers utilizing these tools are better equipped to meet evolving consumer expectations, boost engagement, and increase sales. Nonetheless, managing operational challenges—like the rise in returns—remains crucial. In summary, the Salesforce report highlights the transformative impact of AI-powered chatbots on retail during the 2024 holiday period. The technology smoothed the shopping experience and contributed to substantial online sales growth amid tough competition. Combined with strategic mobile and social media use, retailers crafted a multifaceted approach addressing both consumer needs and business goals. Going forward, ongoing innovation and adaptability will be essential for retailers seeking to capitalize on AI and digital commerce opportunities.