Retailers and brands face a unique challenge this year as Black Friday and Cyber Monday (BFCM) approaches: Understanding how AI has changed the game for both consumers and sellers.

Over half (56%) of shoppers will use AI tools for BFCM shopping, according to an August Klaviyo survey.

Many shoppers are now more intentional and not so easily swayed, meaning brands should try pivoting to more sustainable strategies that grow loyalty and awareness, instead of looking for a quick sale.

"If every brand comes to you, and they say, 'Here's 20% off',' it becomes a codependency of a brand,” said Jamie Domenici, Klaviyo's CMO.

AI-assisted shopping

Not only are 56% of shoppers planning to use AI tools for BFCM, but 81% have used them for product research in the last three months, according to the same Klaviyo study.

Consumers are also receptive to AI’s role in the post-purchase process:

• Nine in 10 are open to AI managing order tracking.
• 84% are open to AI managing reorders.
• 81% are open to AI escalating customer support.

The top categories where shoppers are most comfortable with AI tools are apparel, entertainment and travel, per Klaviyo.

Building trust with AI

As more consumers adopt AI tools in the shopping experience, they begin to trust brands more when those tools are offered. And not surprisingly, younger consumers are leading this trend.

Overall, 40% of consumers say AI assistants improve brand trust, according to Klaviyo's data. However, among younger consumers:

• 55% of millennials say AI assistants improve brand trust, and 56% of Gen Z say the same.

When integrating AI into the customer experience, retailers should be mindful of lingering consumer skepticism, even among AI’s champions. Gen Z shoppers are 31% more likely than the average consumer to lose trust in the brand if the technology feels too aggressive or sales-driven, the Klaviyo study found.

Consumers expressed the most skepticism about AI tools when it came to:

• Misuse of personal data (36%)
• Inaccurate or misleading answers (15%)
• Failure to escalate a customer query to a human (15%)
• Pushy or manipulative-feeling AI (13%)

The new holiday cycle

“We've always said you have to build this digital relationship with your customer, and brands that do that are going to have more longevity,” said Domenici.

Consumers still make last-minute purchases, but many holiday shopping decisions begin earlier and earlier, due to big October promotions. This gives brands and retailers a longer runway to build relationships during this extended shopping season.

Nearly a quarter (24%) of consumers plan to take advantage of early sales prior to BFCM, according to Klaviyo’s forecast. And 36% of consumers don’t have any specific time they shop for holidays.

This always-on mentality for holiday shoppers is a gamechanger for brands and retailers who need to build relationships year round. Brands should consider messages that build trust, and offer AI tools that aren’t too pushy. These tools should help customers find what they want, and assist with orders and service after the sale. Not only will this approach drive sales for the current holiday season, but it will keep the momentum going for seasons to come.

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