Holiday shoppers are turning to generative AI tools first for inspiration—finding gift ideas they hadn't considered, often sorted by the interests or ages of people on their gift lists. With tighter budgets due to rising costs for consumer goods and everyday living expenses, shoppers are increasingly using AI tools to compare prices, set restock alerts, and pinpoint the best time to buy. However, the final purchase step hasn't shifted to automation—consumers still want to complete transactions themselves, whether online or in-store, particularly for the tactile experience of holiday shopping.
For commerce practitioners, the key implication is that AI expands the discovery journey rather than replacing existing channels, fragmenting the early research phase across search engines, marketplaces, brand sites, physical stores, and AI assistants. Trust in AI gift recommendations varies by generation, with Gen Z and Millennials more likely to trust AI tools than Gen X and Baby Boomers. To improve AI discoverability, retailers should prioritize optimized product data, accurate availability and shipping information, and detailed fit-related customer feedback from reviews and forums, since consumers increasingly use time-based and fit-parameter searches in AI-assisted product research.