Research suggests that a significant proportion of consumers will rely on artificial intelligence (AI) to support their shopping activities during the upcoming Black Friday weekend and festive season. Findings indicate that 69% of shoppers are prepared to permit AI agents to carry out their shopping, while 60% plan to use AI to locate deals. The survey involved 3,300 consumers and software professionals across key retail markets.
AI in shopping
Interest in AI extends beyond deal-hunting, with 56% of respondents expecting to ask AI for gift recommendations. While usage is high among consumers, investment appears to lag on the organisational side; only half of surveyed businesses are developing shopping or purchasing agents for their customers.
Social commerce
Social media continues to exert considerable influence on shopping behaviour. More than half (57%) of consumers said they intend to shop via social platforms. Instagram is the most popular channel for conversions, driving 68% of social purchases, followed by Facebook (63%) and TikTok (53%).
Payment trends
The survey showed that 78% of shoppers will use buy-now-pay-later (BNPL) services, including PayPal, Klarna, and Affirm, over the festive period. When considering BNPL options, 43% cited interest rates and fee structures as their top priority, with repayment timelines (36%), credit limits (15%), and refund policies (6%) following.
Omnichannel expectations
Both in-store and online shopping are expected to see increased activity. About 90% of respondents expect to make purchases at physical locations, with 36% planning to spend more than last year. Online shopping also remains strong, as 92% intend to shop online and 41% expect to increase their spending.
Consumers are highly sensitive to the quality of the shopping experience. A third (33%) anticipate returning holiday gifts or purchases. Online shoppers are intolerant of poor checkout experiences, with most willing to attempt a purchase only twice before abandoning their cart if issues arise. Moreover, 78% will abandon a purchase if their preferred payment method is unavailable. The uptake of digital wallets is growing, with over half (54%) of the 40% adopting new payment methods choosing digital wallets.
Retailers' omnichannel offerings also factored heavily in customer loyalty. Just over half (51%) of respondents said they would leave a brand following a poor omnichannel experience. The most valued services include buy online/pick up in store (BOPIS) at 78%, delivery lockers at 41%, and kerbside pickup at 41%.
Global considerations
Many brands are prioritising localisation to enhance retention and foster loyalty in international markets. According to the report, 68% of businesses have their online platforms available in multiple languages. Additionally, 67% have revised customer journeys and checkout flows to accommodate norms and preferences in different countries and cultures.
Retailer outlook
"Good news for retailers - consumers are planning a healthy mix of in-person and online shopping over the Black Friday/Cyber Monday weekend and throughout the holiday season," said Luke Damian, Chief Growth Officer, Applause. "But, it's clear the industry needs to adapt to a world where AI is more and more involved in the customer journey.
"Despite continuing concerns around AI accuracy and bias, people are more than willing to let an AI agent help with their holiday shopping. This reflects the explosive growth potential of AI across markets and increasing quality that is enabling agentic AI to enter the consumer equation. It is crucial for these agents to be rigorously tested to alleviate the risks - that means human-led fine-tuning, red teaming and more."
"Flexibility and quality are essential factors for driving customer retention and loyalty," Damian said. "This year's results show growing interest in convenient payment and omnichannel experiences, including buy now, pay later and a range of pickup and delivery options. These are complex processes that must run smoothly to avoid cart abandonment and customer churn. Incorporating regional payment preferences and UX factors into testing will be a game changer for retailers competing for holiday shoppers this season."
