AI Tools Transform Holiday Shopping with Tailored Gifting and Direct Purchases
During the holiday season, AI tools such as Copilot, ChatGPT, and Gemini are becoming increasingly popular for gift ideas and price comparisons. A Manchester shopper recently used Copilot to personalize a Viking-themed gift by inputting details like age, hobbies, and interests, leading to a niche retailer offering relevant items.
Salesforce projects that AI will drive 21% of all global holiday orders, translating to about $263 billion in sales. In the US, more than half of consumers said they would probably or definitely use AI tools for shopping, while 61% of consumers in the UK and Ireland have already used AI for locating items or finding the best deals. However, over two-thirds remain unimpressed with current AI-powered retail experiences.
OpenAI launched its Instant Checkout feature at the end of September, enabling partnerships with retailers including Etsy, Shopify, Walmart, Salesforce, and Target. These collaborations allow products to be directly listed in chat, though direct in-chat purchases are still developing and require OpenAI approvals for retailer listings. Through its partnership with OpenAI, Walmart enables customers and Sam’s Club members to plan meals, restock essentials, and discover products all via chat.
Analysts advise that retailers should prioritize AI partnerships to enhance brand perception. It is expected that larger retailers such as Walmart and Costco will adopt such strategies rapidly, while smaller brands may initially be excluded from these opportunities.
Burlap & Barrel, a US spice company, views AI-powered shopping as a growth avenue. They leverage AI searches to drive traffic but do not currently seek direct partnerships with OpenAI. Instead, they are building their own spice database for AI to access. Nonetheless, there are risks: outdated or inconsistent product information can mislead AI recommendations, and poor data quality may cause smaller brands to lose visibility.
Overall, AI is shaping the retail shopping experience for the holiday season by offering tailored options, streamlined purchasing, and new marketing dynamics.
