A Salesforce survey revealed that AI Agents influenced 19% of holiday purchases, a 6% increase from the prior year.
The 2024 holiday shopping season marked a landmark for online retail, with global holiday retail sales surging to a record breaking $1.2 trillion and $282 billion in the United States. However, while retailers celebrated robust sales, high returns by customers could dampen profit margins, with over $122 billion in global returns—a 28% increase compared to last year.
Despite this challenge, AI and agents played a pivotal role in shaping a better-than-expected robust holiday season. According to Salesforce’s data, AI and agent-driven features contributed to an impressive $229 billion of online sales, influencing 19% of all online orders.
The use of AI agents in product recommendations, targeted offers, and personalized customer service was key to creating a seamless shopping experience for consumers. As retailers focus on minimizing losses due to returns, AI tools will remain central in driving efficiency and enhancing customer engagement in the new year.
The Role of AI in Enhancing the Holiday Shopping Experience
AI-powered technology has quickly become indispensable in retail, transforming how shoppers interact with brands. During the 2024 holiday season, retailers saw a significant increase in generative AI tool use, including conversational agents that helped guide shoppers through their buying journey. AI agents influenced 19% of holiday purchases—a 6% increase from the previous year.
Salesforce observed that 42% more shoppers engaged with AI-powered chat for customer service compared to the 2023 holiday season. These interactions helped create personalized experiences, guiding consumers in product discovery and troubleshooting. Through AI agents, retailers gave real-time support, respond to customer queries, and suggest products based on user preferences, ultimately leading to higher conversion rates and sales.
Moreover, Salesforce noted a 25% increase in the retail use of generative AI between September and October 2024, showing that the technology’s influence accelerated as the holiday season approached. AI-enabled tools like predictive analytics and used in the form of product recommendations helped retailers stay ahead of trends and meet customer demands, providing valuable insights that optimized inventory and pricing strategies.
Addressing Returns with AI
While the high return rate will impact margins for retailers, AI and agents are helping brands navigate this issue by streamlining the returns process. With $122 billion in global returns, a significant opportunity exists for AI agents to assist customers with hassle-free returns and exchanges, particularly with features like virtual try-ons or size suggestions.
In fact, Salesforce found that 75% of U.S. customer responses indicated an interest in using AI agents for returns and exchanges—indicating a clear preference for automated, seamless post-purchase experiences.
By leveraging AI to personalize and simplify returns, retailers can improve customer satisfaction while minimizing the operational costs associated with returns. This is a crucial area where AI agents are expected to continue delivering value, providing tailored solutions that both enhance the shopping experience and reduce the financial impact of returns.
AI Powers Personalized Shopping Experiences
The surge in mobile apps and social commerce, alongside AI-driven personalization, contributed to a record-breaking season for online holiday sales. Retailers who embraced AI to create personalized shopping experiences saw direct benefits, from customer interactions on mobile devices to crafting targeted marketing campaigns.
AI technology-enabled retailers to deliver timely, relevant product recommendations based on consumer behavior, increasing the likelihood of conversions.
Furthermore, social commerce grew rapidly during the holiday season, with platforms like TikTok Shop and Instagram driving 20% of global holiday sales. AI played an important role in these platforms, where AI agents, replaced human agents, and curated product suggestions based on social media trends and customer interests, further enhancing the shopping experience for users.
Looking Ahead: The Future of AI in Retail as Retailers Embrace AI Agents
As retailers look ahead to 2025, the role of AI agents will become even more central. Beyond just driving sales and personalizing experiences, these technologies will be vital in managing returns, improving operational efficiencies, and deepening customer loyalty.
Salesforce’s survey found that nearly three-quarters of U.S. shoppers (72%) said they are more likely to continue shopping with brands that offer loyalty programs. AI agents can play a key role in facilitating these loyalty interactions.
With the holiday season now behind us, retailers are reflecting on how AI has empowered them to drive sales, enhance customer service, and address operational challenges like returns. As technology continues to evolve, AI agent use will only grow, shaping the future of e-commerce for years to come.
The 2024 Salesforce Holiday Insights and Predictions Methodology was powered byAgentforce, Commerce Cloud, Marketing Cloud, and Service Cloud, Salesforce analyzed aggregated data on the Salesforce platform to produce holiday insights from the activity of more than 1.5 billion global shoppers across more than 89 countries, with a focus on 18 key markets
