Global online holiday retail sales reached a record $1.2 trillion, with artificial intelligence playing an increasingly influential role in shaping consumer behaviour, according to new data from Salesforce.

The better-than-expected holiday shopping season saw US sales climb to $282 billion, representing a 4 per cent year-over-year increase, while global sales rose 3 per cent compared to 2023. The European Union also experienced modest growth of 1 per cent.

AI and digital agents influenced $229 billion of global online sales through product recommendations, targeted offers, and customer service support, accounting for 19 per cent of holiday purchases - a 6 per cent increase from the previous year. Retailers increased their use of generative AI features by 25 per cent during the holiday season compared to earlier months.

"Retailers had a robust holiday season, but a 28 per cent rise in the rate of returns compared to last year is a cause for some concern," said Caila Schwartz, director of consumer insights at Salesforce. "Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and re-engage with shoppers."

Mobile commerce continued to dominate, with nearly 70 per cent of orders placed through smartphones - reaching a peak of 79 per cent on Christmas Day. Overall, mobile devices initiated $842 billion in global sales and $195 billion in US sales.

Social commerce emerged as a significant driver of sales, with platforms like TikTok Shop and Instagram generating 20 per cent of global holiday sales for retailers using these channels. Social media referrals grew 8 per cent year-over-year, driving 14 per cent of all traffic to ecommerce sites.

While discounts remained modest at 23 per cent in the US and 22 per cent globally, loyalty programmes proved effective for customer retention, with 72 per cent of US shoppers indicating these programmes make them more likely to continue doing business with brands.

Returns continue to pose a challenge for retailers, with more than $122 billion of global purchases already returned – a 28 per cent increase from last year. Salesforce projects this figure could grow to $133 billion, highlighting the importance of efficient returns management systems.

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