Generative AI Transforms E-Commerce: 59% Adoption and $3.5B Growth

Generative AI is transforming e-commerce, with 59% of U.S. consumers using it for shopping and 52% monthly for research, comparisons, and recommendations. Market growth is projected to reach $3.5 billion by 2034, driven by personalization and efficiency. Retailers must address privacy concerns to capitalize on this shift.
Generative AI Transforms E-Commerce: 59% Adoption and $3.5B Growth
Written by John Smart

The Rise of AI in Everyday Shopping

In the rapidly evolving world of online retail, generative artificial intelligence is no longer a novelty but a staple for many consumers. A recent survey highlights a striking trend: more than half of Americans are turning to these AI tools for e-commerce activities on a monthly basis. This shift underscores how technology is reshaping consumer behavior, making shopping more intuitive and personalized.

The survey, conducted by Omnisend and detailed in an article from Chain Store Age, polled 1,200 U.S. consumers and found that 59% use generative AI for online shopping. Among them, 52% do so at least once a month, with popular applications including product research, price comparisons, and personalized recommendations. This data points to a broader adoption where AI chatbots like ChatGPT are increasingly preferred over traditional search engines for product advice.

Shifting from Search Engines to Chatbots

One in four respondents in the Omnisend survey indicated that ChatGPT outperforms Google for product research, signaling a potential disruption in how information is sourced online. This preference stems from AI’s ability to provide tailored, conversational responses that feel more engaging than static search results. Retailers are taking note, integrating AI to enhance customer experiences and boost conversions.

Further insights from Adobe, as reported in Digital Commerce 360, reveal a staggering 4,700% surge in generative AI-driven traffic to U.S. e-commerce sites in July 2025 alone. This spike reflects consumers spending more time on AI-assisted research, leading to higher engagement and purchase rates. Adobe’s analysis suggests that AI is not just a tool but a transformative force, helping shoppers evaluate options across platforms efficiently.

Market Projections and Industry Impacts

Looking ahead, market forecasts paint an optimistic picture for generative AI in e-commerce. According to Precedence Research, the global market is expected to grow from $833.11 million in 2024 to around $3,519.84 million by 2034, at a compound annual growth rate of 15.5%. This expansion is driven by AI’s role in personalization, inventory management, and predictive analytics, which could boost conversions by up to 30%, as noted in reports from WebProNews.

Industry insiders point to sustainability and omnichannel strategies as key areas where AI will dominate in 2025. For instance, AI-powered tools are optimizing pricing and reducing waste, aligning with consumer demands for eco-friendly practices. A post on X from market analysts echoes this sentiment, highlighting how AI is rebuilding shopping experiences for quality and personalization rather than sheer volume.

Consumer Behavior and Future Trends

Delving deeper into consumer habits, the Omnisend survey reveals demographic nuances: younger shoppers, particularly Gen Z and millennials, are leading the charge, with 70% adoption rates. They favor AI for its speed in comparing prices and generating outfit ideas or home decor suggestions. However, concerns about data privacy and AI accuracy persist, with 28% of users expressing hesitation.

To address these, companies like Google are enhancing their AI offerings, as seen in integrations with the Shopping Graph for more reliable product data. Meanwhile, a CivicScience survey shared on X indicates that 40% of U.S. consumers used generative AI tools in the past month, with ChatGPT holding a 46% share, closely followed by Google Gemini at 37%. This competition is spurring innovation, from voice-activated shopping to augmented reality try-ons.

Challenges and Opportunities for Retailers

For retailers, the AI boom presents both opportunities and challenges. On one hand, tools like those from FactFinder, discussed in their blog, offer insights into optimizing online shops for AI-driven searches. On the other, adapting requires significant investment in technology and training.

As we move into late 2025, experts from Salesforce predict that generative AI will unlock new efficiencies in marketing and service, potentially reshaping profitability and customer loyalty. The key for industry players will be to harness these tools ethically, ensuring they enhance rather than replace human elements in shopping. With monthly usage trends climbing, the integration of AI in e-commerce is set to define the next era of retail innovation.

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