“Shark Tank” investor Kevin O’Leary says AI-driven personalized offers helped boost Black Friday and Cyber Monday sales, while warning shoppers to avoid taking on holiday debt amid rising credit card balances.
Credit Cards Called Costly Trap
Speaking on Fox Business, O’Leary highlighted the unprecedented scale of online shopping during the Thanksgiving to Christmas holiday period. He noted that AI played a significant role in this surge, tailoring offers based on users’ buying history across platforms like TikTok and Instagram.
The Canadian investor also called credit cards a “double-edged sword,” and cautioned against carrying balances at around a high 20% interest, calling it “stupid.” Even with increased holiday spending, 10–20% more from Thanksgiving to Christmas, having a payoff plan is essential, said O’Leary.
Despite the surge in online spending, O’Leary also expressed concern about a growing trend among young people, particularly couples, to share a single credit card, which he described as a “bad trend.”
The investor also advised against putting multiple cards online and recommended having a single card with a limited credit line to minimize potential losses in case of a security breach.
AI, BNPL Drive Holiday Spending
The surge in online shopping during Black Friday and Cyber Monday was record-breaking this year. According to Adobe Analytics, U.S. shoppers spent $8.6 billion online on Black Friday, marking a 9.4% increase from the previous year. The final online sales for Black Friday were expected to reach between $11.7 billion and $11.9 billion, setting a new record for the holiday. The analytics also highlighted that the Cyber Monday sales hit $14.25 billion this year.
The same report also highlighted that Buy Now, Pay Later (BNPL) usage hit an all-time high, up 4.2% from last year, contributing more than $1 billion in online purchases on Cyber Monday. Adobe projects total BNPL spending to reach $20.2 billion by the end of the holiday season, an 11% jump from 2024.
The use of AI for product discovery and deal-hunting has significantly influenced consumer behavior, leading to a boom in AI-driven shopping.
This trend has also impacted the financial habits of consumers, with the Shark Tank investor’s warning against excessive credit card debt aligning with the findings of a recent Bankrate survey, which revealed that one in three Americans has credit card debt that exceeds emergency savings.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
