Artificial intelligence (AI) played a major role in boosting online shopping during the 2024 holiday season, helping U.S. retailers achieve a 4% year-over-year increase in sales, according to a new report by Salesforce. AI-driven chatbots, personalized promotions, and smarter product recommendations contributed to this growth by enhancing the shopping experience.
Between November 1 and December 31, online sales in the U.S. reached $282 billion, up from $272 billion in 2023. This growth outpaced Salesforce’s initial forecast of 2%, proving that AI-driven retail strategies are reshaping consumer behavior.
How AI Transformed the Holiday Shopping Experience
Retailers increasingly relied on AI-powered chatbots to assist shoppers with their purchases and returns. Salesforce data revealed that usage of these AI chat services increased by 42% compared to 2023, showing that consumers are embracing automated support for a smoother shopping experience.
Globally, AI-influenced sales also saw a major jump. Between November and December 2024, AI played a role in driving $229 billion in worldwide online sales, a sharp rise from $199 billion the previous year.
Beyond chatbots, retailers leveraged AI-driven loyalty programs, dynamic pricing, and targeted product recommendations to attract and retain customers. Additionally, social media platforms such as TikTok Shop and Instagram helped drive sales, accounting for 14% of total traffic to e-commerce sites.
The Rising Challenge of Product Returns
While AI helped increase sales, it also contributed to a growing issue: higher return rates. According to Caila Schwartz, Director of Consumer Insights at Salesforce, customer returns rose to 28% in 2024, compared to 20% in 2023. This spike in returns could significantly impact profit margins, forcing retailers to rethink their strategies for handling post-purchase interactions.
“Retailers who have embraced AI-powered tools are already seeing positive results, but in 2025, these technologies will be even more critical in reducing revenue losses from returns and re-engaging with shoppers,” Schwartz said.
Mobile Shopping & Last-Minute Purchases on the Rise
The Salesforce report also highlighted the growing dominance of mobile shopping. On Christmas Day, smartphone orders peaked, accounting for 79% of all holiday sales. This shift underscores the importance of mobile-friendly e-commerce experiences, as more consumers rely on their phones for last-minute shopping.
Looking Ahead: AI’s Role in the Future of Retail
As AI continues to redefine the retail landscape, businesses must focus on enhancing customer experiences while minimizing return-related losses. With AI-driven insights, retailers can fine-tune personalized shopping experiences, optimize customer support, and develop better return policies to maximize profits in the coming years.
The 2024 holiday shopping season demonstrated that AI is no longer just an option for retailers—it’s a necessity for staying competitive in the fast-evolving e-commerce world.
