What: Generative AI-driven traffic to U.S. retailers surged 830% year-over-year for the 2025 holiday season, with AI-driven shoppers showing significantly higher conversion rates.

Why it is important: The rise in AI-generated traffic and higher conversion rates underscores the urgency for retailers to optimise for AI answer engines to remain competitive.

Generative AI has become a transformative force in the U.S. retail sector, with traffic from AI platforms like ChatGPT and Gemini increasing by 830% year-over-year during the 2025 holiday season. This surge is not only driving more visitors to retail sites but also resulting in a 30% higher conversion rate among AI-driven shoppers compared to those arriving via traditional search. While consumer surveys reveal some hesitation in adopting AI for shopping, hard data from Adobe shows that nearly half of surveyed consumers have used or plan to use AI for holiday purchases, indicating a shift toward mainstream acceptance. The normalisation of AI-driven traffic, with growth rates stabilising from previous years, suggests that AI is moving beyond early adoption and becoming an integral part of the retail experience. Retailers are now compelled to adapt their digital strategies, optimizing for AI answer engines to maintain visibility and capture this high-intent traffic. As AI continues to reshape consumer discovery and purchasing behaviours, the industry faces both significant opportunities and new competitive pressures.

IADS Notes: Throughout 2025, retailers have rapidly shifted their digital marketing and content strategies to align with the rise of generative AI, as seen in November and October. Early adopters have reported notable revenue gains and improved engagement, with consumer use of AI shopping tools reaching critical mass by March. The introduction of ChatGPT Instant Checkout in September marked a pivotal moment, accelerating the shift toward AI-mediated commerce. However, the increasing dominance of AI platforms also presents risks, as highlighted in November, with retailers needing to safeguard customer relationships and data in this evolving landscape.

Generative AI traffic to retailers up 830%