AI is like a sophisticated pair of glasses the consumer is wearing. Suddenly, they can see every deal, price comparison, and hidden coupon code with startling clarity.
Rowen Pillai, CEO, LeanTechnovations. Image supplied
For retailers, the challenge is ensuring their own digital shelf is not only stocked but brightly lit and perfectly positioned for these discerning, newly sighted shoppers.
The Black Friday season represents far more than a simple sales spike; it is the ultimate test of a retailer's digital preparedness and strategic foresight.
South African consumers are ready to spend, having shattered records in 2024 with over R30bn spent across just three major banks. With retail intensity confirmed by a 7.7% year-over-year rise in retail trade sales in November 2024, the commercial opportunity is massive.
However, success this year will not hinge purely on deep discounts or flawless logistics. The decisive factor for commercial dominance will be the strategic integration of Artificial Intelligence (AI), turning the AI-empowered customer landscape into a competitive advantage.
Shopper behaviour is evolving
The shift in consumer behaviour is clear. Shoppers are evolving from casual bargain hunters into professional, data-driven deal architects, heavily supported by generative AI (GenAI). Global trends clearly indicate that AI has become a practical shopping aid, guiding consumers at critical decision points.
Nearly half of global consumers (48%) have already used or plan to use GenAI during year-end sales events, marking a 9% point increase over 2024.
In the context of holiday shopping, some surveys suggest that 33% of people plan to use AI, doubling the adoption rate from the previous year. This growth confirms that GenAI is penetrating deeply into everyday shopping journeys across all age groups, including Gen X and Boomers.
Shoppers are relying on AI to help them find deals, a critical factor given that cautious spending behaviours persist among South African consumers.
Consumers primarily leverage GenAI for research and inspiration. This Black Friday season, a significant portion of consumers, 46%, intend to leverage AI for comparing products. Additionally, 44% plan to use AI for finding deals and doing product research.
The consumer adoption of GenAI means that shopper expectations are shifting dramatically toward personalisation and efficiency. Customers now anticipate instant recommendations tailored to their preferences, budgets, and recipients.
AI strategies for retailers
For South African retailers, this massive, accelerated shift in consumer technology usage is not a threat; it is an undeniable opportunity for those who are better positioned. As consumers increasingly rely on GenAI tools to search, compare, and potentially even execute purchases (agentic commerce), online visibility has become the new shelf space.
Retailers risk being reduced to background utilities if AI systems fail to surface or misread their offers.
To attain commercial success this Black Friday season, retailers must implement three core AI strategies:
- They must shift their focus from traditional SEO to Answer Engine Optimisation (AEO). This involves optimising content to provide direct and clear answers to AI-driven queries, ensuring that their offers are preferentially presented when chatbots are asked for product recommendations or deals.
- A crucial foundation for visibility in an AI ecosystem is structured and accurate data. Retailers need to standardise their product information, including specifications, customer reviews, and sustainability details, to be machine-readable. Regular audits of AI-generated results are also necessary to identify and correct any misrepresentations early on.
- To meet the high personalisation expectations of AI-savvy shoppers, retailers should embed AI directly into the customer experience. This could include integrating AI-powered gift finders, style assistants, or deal copilots into their websites or apps. This AI-powered personalization is vital for a future-proofing strategy. Furthermore, by driving traffic to their own channels through exclusive loyalty rewards and personalised bundles, retailers can reduce their reliance on third-party intermediaries.
Extending shopping season
Black Friday has evolved from a single-day event into a prolonged retail spike, often extending for 10 weeks or more.
This requires retailers to manage a "Build-Up Phase" of consumer research, a "Rush Phase" of focused searching, and an "Aftermath Phase" of gift searches and continued sales. AI is critical for managing this extended period, especially in the South African context.
Affordability and Buy Now Pay Later (BNPL) options are gaining momentum due to constrained budgets and elevated household debt. Responsible lending in this environment necessitates AI and advanced analytics to leverage enhanced trended credit data and income estimation, ensuring the quality of approvals remains strong under pressure.
Black Friday brings a surge in transaction volume and, consequently, a rise in suspected digital fraud attempts. Retailers must be prepared for newer patterns, including AI-enabled impersonation and altered documents.
A layered defense approach is crucial, combining identity verification, device intelligence, and document checks, applying selective friction only when risk indicators increase. AI plays a vital role in mitigating fraud by quickly identifying suspicious users, devices, and transactions.
Customer experience optimisation is paramount for retailers. This involves prioritising AI-powered tools that enhance the customer journey, such as automated confirmation sequences and proactive shipping communications.
For Black Friday 2025, retailers must be prepared for the continued dominance of mobile commerce (expected to account for over 70% of transactions) and meet customer expectations for AI-powered personalisation.
The shifting Black Friday landscape clearly illustrates that the festivities extend far beyond mere discounting; it is about creating exceptional customer experiences that convert bargain hunters into loyal advocates.
Retailers who treat Black Friday as an isolated, transactional event will miss 80% of the potential opportunity. Those who strategically leverage AI to understand the professionalised consumer by mastering AEO, integrating personalisation tools, and fortifying operational defenses against AI-enabled fraud, will be the ones that dominate not just November, but the entire festive season.
Effective preparation ensures a strategy that maximises both short-term sales and long-term relationships, so start preparing now to secure your success.
