What: AI-powered search and analytics tools are transforming Black Friday and holiday retail strategies, driving record sales and reshaping consumer behaviour.

Why it is important: AI-driven strategies are accelerating digital transformation in retail, enabling brands to meet evolving consumer expectations and outperform competitors.

Retailers are rapidly integrating AI-powered search and analytics tools to optimise their Black Friday and holiday sales strategies, resulting in record-breaking sales figures and significant shifts in consumer behaviour. The widespread use of AI for deal-hunting and personalised promotions has compelled retailers to adapt their tactics, with nearly two in five global consumers leveraging these technologies during major shopping events. AI-driven pricing and merchandising are enabling retailers to respond dynamically to market pressures, such as inflation and changing customer preferences, while also enhancing operational efficiency. Early adopters of generative AI are reporting substantial revenue increases and improved customer engagement, demonstrating the competitive advantage of advanced technology in the retail sector. As AI continues to influence both consumer decision-making and retailer operations, the industry is witnessing a fundamental transformation that prioritises digital innovation, data-driven insights, and seamless customer experiences. This evolution is setting new standards for success in an increasingly competitive retail landscape.

IADS Notes: Throughout November and December 2024, industry reports consistently documented the transformative impact of AI on Black Friday and holiday retail performance. BCG and WWD highlighted the surge in AI adoption for both consumer-facing and operational strategies, while Techcrunch and The Robin Report quantified the resulting sales growth and behavioral shifts. By September 2025, BCG confirmed that early AI adopters were realising significant revenue gains, reinforcing the critical importance of digital transformation and advanced analytics for sustained retail competitiveness.

AI search to have big Black Friday impact as retailers rush to capture promotional spend