Artificial intelligence is increasingly influencing how people choose and purchase gifts during the festive season, as consumers across the world turn to chatbots for personalised suggestions, price comparisons and direct purchasing options.
AI becomes a festive shopping assistant
When Manchester resident Rachael Dunfell searched for a Christmas gift for her husband’s 21-year-old cousin, she had little more to go on than his love for specialised racing bikes and an interest in Vikings. With few ideas, she turned to Microsoft’s Copilot. After entering his age and hobbies, the chatbot directed her to a niche retailer selling Viking-themed metal bike parts — a product she had never imagined existed, but which turned out to be the perfect find.
Her experience reflects a broader trend: AI is reshaping the global holiday shopping landscape. Consumers are using platforms such as Copilot, OpenAI’s ChatGPT and Google’s Gemini to discover personalised gift options and compare prices quickly.
According to Coresight Research analyst John Harmon, this year marks the first holiday season meaningfully shaped by AI-led shopping. Salesforce estimates that AI will drive 21% of global holiday orders, amounting to around $263 billion in sales. Surveys also show rising adoption: more than half of US shoppers and 61% of consumers in the UK and Ireland report using AI to locate products or find better deals.
Despite this, many respondents say that AI-driven retail experiences have yet to truly impress, signalling room for growth and refinement.
Retailers race to keep pace with AI
Major brands are rapidly adapting to AI-led consumer behaviours. Businesses are working to ensure that their product information is accurate and easily discoverable by AI models — a crucial step as poor data can reduce visibility, particularly for small brands.
Melanie Nuce-Hilton of GS1 US said retailers now feel an urgency to ensure their products appear correctly in AI search outputs. Outdated or inconsistent product data, she noted, can hinder AI recommendations and disadvantage smaller businesses that heavily rely on digital discovery.
The integration of AI is also changing how people make purchases. OpenAI recently launched its Instant Checkout feature, enabling users to buy items without leaving the chat interface. Strategic partnerships have already followed, with Etsy, Shopify, Walmart, Salesforce and Target listing products directly within ChatGPT.
Walmart says the collaboration helps customers plan meals, restock essentials and discover new items simply by conversing with the AI.
However, analysts warn that full-fledged AI-driven purchasing remains in an early stage. Mr Harmon notes that retailers must first secure approval from OpenAI to appear in ChatGPT’s shopping ecosystem — a process that may leave smaller companies temporarily excluded.
Brands explore opportunities and challenges
Marketing experts believe AI partnerships can influence consumer perception. According to Prof Yanliu Huang of Drexel University, established retailers such as Walmart stand to benefit from appealing to younger and more highly educated shoppers through AI-enabled platforms. She predicts that other large retailers, including Costco, along with numerous smaller brands, will soon follow.
Smaller firms are also finding opportunities. Burlap & Barrel, a US-based spice company, attributes part of its recent growth to AI searches directing shoppers to its robust online catalogue. Co-founder Ori Zohar said their detailed product information has proven valuable to AI systems.
Despite this, the company is not currently pursuing direct partnerships with AI providers. Instead, it is focused on enhancing its internal spice database, ensuring that AI tools can naturally surface their products without formal agreements.
AI gifting helps consumers discover niche items
For individuals, AI is opening doors to unique and hard-to-find gifts. Hanoi-based teacher and sound engineer Allan Binder says he began using AI last year to brainstorm presents for family and friends in the US. His searches led him to artisan English scissors, Indonesian pottery for his mother, and, more recently, historic prints for the festive season.
He believes AI tools have the ability to match highly specific products with interested customers. At the same time, he warns of the risks: well-informed shoppers may become even more discerning, while those who rely too heavily on automated suggestions might make hasty, less researched purchases.
A transforming but uneven retail landscape
As AI becomes further embedded in digital commerce, experts predict that consumer expectations will shift quickly. Retailers that invest early in AI-friendly data practices and strategic partnerships may gain an advantage, while others risk losing visibility in an increasingly competitive digital marketplace.
For consumers, AI promises convenience and discovery — but also underscores the importance of balancing automation with thoughtful decision-making.