Online channels accounted for 17.1 percent of U.S. retail sales in Q2 2026 and 7.6 percent of Canadian retail sales in August 2026, according to U.S. Census Bureau data republished by the Federal Reserve Bank of St. Louis and to Statistics Canada. AI in online stores is mostly chatbots, analytics, and text tools, and the legal limits that apply to it come from general consumer protection law, such as the FTC's rule on fake reviews and Canada's Competition Act, rather than from AI-specific statutes.
Key takeaways
- The U.S. e-commerce share of retail reached 17.1 percent in Q2 2026, against 16.3 percent a year before.
- Statistics Canada put retail e-commerce at CAD 5.6 billion in August 2026, or 7.6 percent of retail trade, on a narrower definition.
- Statistics Canada found that 19.2 percent of Canadian firms had adopted AI over the year to spring 2026; chatbots ranked third among the uses.
- The FTC's consumer reviews rule has applied since October 21, 2024 and covers fake reviews, including AI-generated ones.
- FTC complaints about "AI-powered" store programs target the earnings promises made to buyers, not the use of AI in a shop.
How large online retail is
The two countries measure e-commerce differently, so the figures in the table should not be set side by side as a ranking. Statistics Canada states that travel and accommodation bookings, ticket purchases, and financial transactions are excluded from Canadian retail sales figures.
| Country | Period | Reported figure | Source |
|---|---|---|---|
| United States | Q2 2026, seasonally adjusted | 17.1 percent of total retail sales (16.3 percent in Q2 2025) | Census Bureau Quarterly Retail E-Commerce Sales, via FRED |
| Canada | August 2026, seasonally adjusted | CAD 5.6 billion, up 1.1 percent from July, or 7.6 percent of retail trade | Statistics Canada, The Daily |
| Canada | May 2026, seasonally adjusted | CAD 5.0 billion, down 1.5 percent, or 6.8 percent of retail trade | Statistics Canada, The Daily |
The Canadian share moved by almost a full percentage point between May and August, which shows how much a single monthly reading can swing. FRED lists November 19, 2026 as the next U.S. release date.
What business surveys say about AI use
No official source consulted for this article reports AI use for online retailers alone. The closest measure is Statistics Canada's analysis of AI use by businesses in the second quarter of 2026. It found that 19.2 percent of Canadian businesses had applied AI in producing goods or delivering services over the prior year, up from 12.2 percent a year earlier and 6.1 percent two years earlier. The survey ran from April 1 to May 6, 2026, and 40.0 percent of businesses said AI was not relevant to them.
Among adopters, the leading applications were data analytics at 36.6 percent, text analytics at 34.5 percent, and virtual agents or chatbots at 28.2 percent. The highest-use sectors were information and cultural industries, finance and insurance, and professional, scientific, and technical services, and the page does not give a retail figure.
Where AI tends to appear, and which rule can apply
The next table is an illustrative map, not survey data. It pairs common store functions with the general rules a seller may need to check.
| Store function (illustrative) | Example of how AI may be used | Rule to check |
|---|---|---|
| Customer support | A chatbot answers order and return questions | Statements about prices, refunds, or products must not be false or misleading (Competition Act s. 74.01 in Canada; FTC Act in the U.S.) |
| Product reviews | A tool drafts or summarizes reviews | FTC consumer reviews rule, 16 CFR Part 465 |
| Product descriptions | A model drafts listing text | Claims about performance or origin still need to be true |
| Seller education | Courses promise "AI-run" stores | Income claims need evidence; see the FTC note below |
The FTC consumer reviews rule
The FTC announced its final rule on consumer reviews and testimonials on August 14, 2024, and the agency's staff guidance says it went into effect on October 21, 2024. The rule bars creating, selling, or buying reviews from people who do not exist, which includes AI-generated reviews, and reviews from people who had no real experience with the business. It also covers paid reviews, undisclosed insider reviews, company-run sites posing as independent reviewers, intimidation to remove negative reviews, and purchases of fake followers or views. Courts may impose civil penalties for knowing violations.
FTC staff guidance adds two clarifications: sorting reviews by helpfulness is not suppression, and there is no blanket ban on AI-generated avatars in marketing, although a testimonial that is false remains prohibited.
Cases about "AI-powered" store schemes
The FTC's September 2024 Operation AI Comply announcement included complaints against sellers of online-store programs pitched with AI-based income promises. The allegations concern unsupported earnings claims, not the technology itself, and the current status of each matter should be checked on the FTC site.
The Canadian baseline
The Competition Bureau explains that paragraph 74.01(1)(a) of the Competition Act prohibits false or misleading representations, judged by the literal meaning and the general impression they create. For a corporation's first violation, the penalty can reach the greater of CAD 10 million or three times the benefit derived, or 3 percent of annual worldwide gross revenue if the benefit cannot be determined. The Bureau page consulted does not mention reviews or AI specifically, so any application to a chatbot or a generated review depends on the facts. This is general information, not legal advice.
FAQ
Is there an official figure for AI use in online retail?
None was found. Statistics Canada reports AI use across all businesses and by broad sector, and its published summary does not break out retail.
Are AI-written product reviews illegal in the United States?
Fake reviews are covered by the FTC rule, including those attributed to people who do not exist. Whether a real customer's review drafted with a writing aid is covered was not addressed in the sources consulted.
Why do U.S. and Canadian e-commerce shares differ so much?
The agencies compile their numbers separately, with different definitions, so a direct comparison is unreliable. Statistics Canada, for one, excludes travel, tickets, and financial transactions.
Does the FTC treat AI-store schemes as AI regulation?
No. Those complaints rest on deceptive income claims, which the agency can pursue whatever technology a seller advertises.
Related reading
- Cost savings from AI in business
- AI chatbots in customer support
- AI in the hospitality industry
- AI and operational efficiency
More in AI Tools and Industry.
Last verified: October 2026
Sources
- E-Commerce Retail Sales as a Percent of Total Sales (ECOMPCTSA), U.S. Census Bureau via Federal Reserve Bank of St. Louis, updated August 18, 2026
- Retail trade, May 2026 and August 2026, The Daily, Statistics Canada, 2026
- Analysis on artificial intelligence use by businesses in Canada, second quarter of 2026, Statistics Canada, 2026
- Federal Trade Commission announces final rule banning fake reviews and testimonials, FTC, August 14, 2024
- Consumer Reviews and Testimonials Rule: Questions and Answers, FTC, 2024
- FTC announces Operation AI Comply, FTC, September 25, 2024
- False or misleading representations, Competition Bureau Canada, 2026