It was the best of search, it was the worst of search. It was the age of instant answers, it was the age of disappearing links. It was the epoch of personalization, it was the epoch of lost discovery. It was the season of AI-driven clarity, it was the season of algorithmic opacity. It was the spring of conversational commerce, it was the winter of ten blue links.
According to , U.S. retail websites saw a 1,200 per cent increase in traffic from generative AI sources between July 2024 and February 2025. During the 2024 holiday season alone, this figure jumped 1,300 per cent year-over-year, with Cyber Monday traffic spiking 1,950 per cent compared to 2023.
Consumer adoption is driving the shift. A survey of 5,000 U.S. shoppers found that 39 per cent have used generative AI for online shopping, with 53 per cent planning to do so this year. Users rely on AI for product research (55 per cent), recommendations (47 per cent), deal-hunting (43 per cent), gift ideas (35 per cent), product discovery (35 per cent), and shopping list creation (33 per cent).
AI-generated traffic isn’t just growing—it’s more engaged than traditional sources. Visitors spend 8 per cent more time on-site, view 12 per cent more pages per visit, and have a 23 per cent lower bounce rate than those from search or social media. Conversational AI interfaces are improving consumer confidence and making online shopping more intuitive.
That said, conversion rates for AI-driven traffic still lag behind traditional sources by 9 per cent, but the gap is closing. In July 2024, the difference was 43 per cent, signaling growing consumer trust in AI-assisted purchases.
Another key insight: AI-assisted shopping is happening on desktops, not mobile. Between November 2024 and February 2025, 86 per cent of AI-driven traffic came from desktop users—suggesting that consumers prefer larger screens for complex, AI-guided shopping experiences.
While the numbers are compelling, they only hint at what’s coming. AI-driven agents won’t just assist shoppers—they’ll shop for them. The way consumers find, evaluate, and purchase products is shifting fast, and this data is just beginning to tell the story.
As always, your thoughts and comments are welcome. Just reply to this email. -s
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named he covers tech and business for , is a regular commentator on CNN and writes a popular . He's a , and the creator of the popular, free online course, . Follow or visit .
