GenAI's Growing Influence on Retail Traffic

In recent times, more and more shoppers are finding their way to U.S. retail websites through generative AI (GenAI) chat interfaces. According to Adobe Analytics, this traffic has been doubling every couple of months since last September. Although GenAI-driven traffic is still smaller compared to traditional channels like paid search or email, its rapid growth is noteworthy.

From July 2024 to February, retail websites saw a whopping 1,200% increase in traffic from GenAI sources. Travel, leisure, and hospitality sites experienced an even more impressive 1,700% jump, while banking sites also saw a 1,200% rise. Interestingly, visitors arriving through GenAI tend to spend 8% more time on retail sites and check out 12% more pages than those from other sources.

However, there's a catch. These GenAI users are currently 9% less likely to make a purchase compared to others. But the gap is closing fast—back in July 2024, the difference was a significant 43%. This trend suggests that while GenAI is often used by shoppers in the research phase, they're becoming more comfortable completing purchases after interacting with AI-powered chats.

The Role of GenAI in Shopping

Generative AI is changing the way we shop by offering recommendations, price comparisons, and even facilitating purchases. A December report highlighted that 44% of consumers are open to using chatbots for product information before making a purchase decision. This shift is transforming commerce, making it easier for consumers to find products and deals.

Take travel, for example. As Doriel Abrahams from Forter noted, AI can quickly compare flights across various websites, saving shoppers a lot of time and effort. This kind of efficiency is becoming increasingly valuable in today's fast-paced world.

Levelpath and Coupa's New Partnership

In other news, Levelpath has teamed up with Coupa to integrate its AI-driven procurement platform with Coupa’s Total Spend Management Platform. This collaboration aims to help businesses streamline their operations and cut procurement cycle times significantly. Levelpath's CEO, Alex Yakubovich, emphasized that their integration allows procurement teams to automate routine tasks and make smarter decisions with real-time analytics.

This partnership is part of a broader trend of digitizing procurement processes. According to a PYMNTS Intelligence report, a significant number of retailers and manufacturers are investing in procurement technology to modernize their systems.

Conclusion

As AI continues to evolve, it's clear that its impact on retail and procurement is only growing. From enhancing the shopping experience to streamlining business operations, AI is becoming an indispensable tool in various industries. As these technologies advance, they promise to reshape how we interact with businesses and make purchasing decisions.