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

Data from KPMG’s latest Consumer Pulse survey, shared exclusively with Retail Week, has found “healthy intention” among consumers to take part in Black Friday deals this year, with nearly three-quarters (74%) of 3,000 respondents saying they are “either planning [or] may be tempted” to buy goods during the period.

While retailer websites and email remain the most common ways for consumers to discover deals, 15% of respondents said they will be using AI chatbots, such as ChatGPT and Gemini, to search for offers, climbing to one in three for those aged between 25-34.

Commenting on the survey findings, head of consumer, retail and leisure at KPMG UK Linda Ellett said: “This Black Friday period will see more related AI use than last. Whether via AI chatbots, clicking through links provided by AI summaries on search engines, or visiting via social media content, the nature of how consumers search for and find promotional offers or gifts is evolving. This presents both challenges and benefits to retailers who need to ensure they adapt their SEO strategies and assess AI bot access to website pages to capture these tech-savvy consumers.

“While visiting a retailer’s website or receiving direct email remains the most common way consumers will discover Back Friday deals, the growth of AI-enabled searching is evident, and is almost double among younger age groups.”

Respondents said they would be most likely to spend on Black Friday deals if retailers offered free delivery (47%) or on free returns (27%). A quarter of consumers would be attracted by a free gift when purchasing or by daily deals (24%).

Fashion and apparel are likely to be the most popular targets for deals this Black Friday, followed by health and beauty products, and then electronics like new laptops and computers.

While AI is expected to play a bigger part for the consumer this Black Friday, it is also being used more by retailers in forecasting and offering more personalisation heading into the golden quarter.

The Retail Think Tank expects retailers to run offers over a longer discounting timeframe this year, with brands battling to capture earlier consumer promotional spend due to the late date of the Budget and the potentially damaging impact that could have on consumer confidence.

“With Black Friday coming just two days after the Budget, and as speculation mounts prior, retailers will be concerned about the potential impact on consumer confidence and spending,” said James Sawley, UK head of retail and leisure at HSBC.

“A potential hold on the base rate in November would also do nothing for consumer sentiment, with rates certainly ending 2025 higher than consumers had hoped. The upshot of all of this is that we can expect to see retailers trying to capture as much promotional spend as they can in early November, otherwise it will come very late.”