How Generative AI is Transforming Business Around Black Friday
AI technologies are revolutionising how retailers personalise shopping experiences and optimise customer service, says guest author Gabriel Frasconi from Freshworks.
As Black Friday approaches in November, retailers are preparing for one of the busiest shopping periods of the year. With rising expectations for seamless, personalised service across both physical and digital channels, businesses face the challenge of maintaining an optimised online presence during this crucial time. Failure to do so can impact sales and brand perception.
Deloitte projects moderate year-on-year sales growth of 2.3–3.3% from November 2024 through January 2025. To capitalise on this, retailers are increasingly turning to innovative AI-driven solutions that enhance customer retention and boost sales. Implementing AI to personalise the shopping experience and streamline service delivery is becoming essential.
Generative AI in customer support and returns management
Generative AI is emerging as a transformative tool in this landscape, enabling retailers to deliver faster, more tailored customer support. Companies like Decathlon are already leveraging AI to uphold high service standards during peak seasons while improving staff efficiency. This strategic use of generative AI is helping businesses better manage demand and deliver exceptional service throughout the holiday season.
These advances are not mere gimmicks; they deliver tangible results, particularly during the busy Christmas season when customer satisfaction is critical. For instance, Decathlon achieved an impressive 82% customer satisfaction rate by using Freshworks solutions.
Optimising purchasing processes with AI
Generative AI has the power to revolutionize not only customer service but the entire purchasing process. Chatbots that locate special offers and provide personalised product recommendations not only streamline shopping but also enable more targeted customer engagement—a key advantage during high-pressure shopping events.
Deichmann, Germany’s leading shoe retailer, significantly improved the efficiency and transparency of its customer service using the AI-powered Freshdesk ticketing system. Processing times and errors, such as duplicate handling, were substantially reduced, as all customer inquiries are managed centrally, and tickets are automatically assigned. These optimised workflows not only enhanced cross-team communication but also enabled rapid responses to the surge in support requests, resulting in a marked increase in customer satisfaction.
AI reduces returns and optimises stock levels
Returns can cause considerable losses for retailers around Black Friday. According to a study by the National Retail Federation, return rates reach up to 17.9 percent at the end of the year during the holiday season. However, AI can make these processes more efficient by predicting which products are likely to be returned and suggesting alternative purchases. This not only minimises returns, but also improves customer satisfaction.
Another crucial factor is inventory management. AI-supported systems help retailers to accurately forecast demand and optimise stock levels accordingly. This is particularly important during the Christmas period in order to avoid shortages or surpluses.
AI as a factor for success on Black Friday
The upcoming Black Friday offers retailers the opportunity to test their AI strategies in practice. Companies can use generative AI to gain a competitive advantage by increasing customer satisfaction and improving efficiency. AI is thus becoming an indispensable tool for meeting the demands of modern retail and successfully mastering the special challenges of the Christmas season.
Gabriel Frasconi
is VP & General Manager South Europe & DACH at Freshworks.
