As artificial intelligence (AI) transforms consumer behavior, U. S. retailers are actively adjusting their marketing and sales strategies to maintain visibility and relevance in AI-driven shopping environments. This shift is particularly noticeable before the holiday season, a key period marked by a surge in online sales heavily influenced by digital interactions. Although online sales are projected to reach $253 billion during this time, many transactions still occur through traditional channels such as standard search engines and direct visits to retail sites. However, emerging AI platforms like ChatGPT and Google's Gemini are increasingly influencing shoppers by offering personalized product advice and purchase options within their interfaces, gradually changing how consumers discover and engage with products beyond conventional search engines. Traditionally, retailers have relied heavily on paid advertisements on platforms like Google and Meta to attract customers and drive sales. The rise of generative AI is introducing a new marketing method called generative engine optimization (GEO), which focuses on creating content optimized for AI algorithms and scrapers to ensure products and brand messages are effectively recommended by AI-powered shopping assistants. Companies like Evertune. ai are pioneering this approach, assisting retailers in developing AI-friendly content strategies. Some of this content resides on 'invisible' websites—digital spaces designed solely for AI consumption rather than human visitors—to feed data into AI systems, boosting product visibility and enabling more precise, personalized recommendations. While referral traffic from AI platforms currently remains low—for instance, ChatGPT contributes less than 1% of total traffic for major retailers such as Amazon, Walmart, and eBay—the purchase intent among consumers arriving via AI channels is notably higher.

This indicates AI-driven recommendations effectively reach motivated buyers. Beyond direct AI shopping assistants, retailers also use indirect strategies by leveraging social media and influencer content to influence AI models. Brands like Brooklinen and R+Co strategically deploy platforms such as TikTok and voice assistants like Amazon Alexa to disseminate product information, aiming for integration into AI training datasets and recommendation engines, subtly shaping consumer perceptions and purchase decisions. Major retailers are further integrating AI into customer interfaces. Walmart and Target are developing chatbot-driven shopping apps offering conversational, AI-powered assistance, while tech giants like Google and Amazon embed AI tools directly into their search engines and marketplaces to enhance product discovery and meet evolving consumer expectations. These developments suggest a profound shift toward a retail landscape where AI not only supports but fundamentally drives consumer engagement and sales. Retailers successfully incorporating AI into marketing and customer interactions can gain a competitive edge in a marketplace increasingly dominated by generative AI’s control over information flow and purchasing pathways. As the holiday season progresses, the convergence of AI and retail underscores the need for innovation and adaptability. Retailers must continue investing in AI-optimized content, explore new ways to engage customers through AI platforms, and refine digital strategies to align with changing consumer behaviors. The AI-driven transformation in retail is not a temporary trend but a fundamental change in marketing and commerce that will shape consumer experiences for years ahead.