Introduction to Prime Day Sale

A recent report suggests that Artificial Intelligence (AI) will play a more significant role than ever in the online shopping process during Amazon’s Prime Day sale, which kicked off on Tuesday morning. The annual sale, spanning four days (July 8-11) this year, is expected to generate $23.8 billion in online spending across U.S. e-commerce retailers. Other businesses are also running their own competing sales alongside the popular shopping event.

Analysis of Online Commerce

Adobe, a leading e-commerce analytics firm, provides insights into online commerce by tracking transactions online. The company’s analysis covers over 1 trillion visits to U.S. retail websites, including 100 million SKUs across 18 product categories, offering a comprehensive view of the online shopping landscape.

Prime Day Forecast

This year, Adobe predicts that Prime Day will be equivalent to “two Black Fridays” in terms of sales volume. The estimated $23.8 billion spent over the four-day period represents a 28.4% year-over-year growth, which is $9.6 billion more than the comparable period last year.

Role of Mobile and AI in Prime Day Sales

Mobile devices will account for more than half (52.5%) of sales, but generative AI will also contribute to the shopping process. During the Prime Day event, Adobe estimates that traffic from generative AI sources will increase by 3,200% year-over-year, although it still lags behind other channels like paid search and email.

Growth of AI-Powered Shopping

The company notes that gen AI-powered chatbots and browsers saw a significant surge in use during the 2024 holiday season, with traffic from those sources jumping 1,300% compared to the prior year from November 1 to December 31, 2024.

Consumer Adoption of AI for Shopping

A survey of 5,000 U.S. consumers found that people are using gen AI for research (55% of respondents), product recommendations (47%), finding deals (43%), getting gift ideas (35%), finding unique products (35%), and creating shopping lists (33%).

Enhanced Purchase Experience with AI

Of those who used gen AI, 92% reported that it enhanced their purchase experience, and 87% said they are more likely to use AI for larger or more complex purchases.

Integration of AI in Shopping

AI providers have been capitalizing on this trend by integrating AI into shopping, as seen in Google’s Gemini-enhanced product search and OpenAI’s addition of shopping features in ChatGPT.

Prime Day Focus on Discounts and Back-to-School Needs

Adobe’s forecast indicates that consumers this Prime Day will be focused on discounts, with apparel having the biggest deals. Back-to-school needs will also drive sales this year, making it a significant event for online retailers.