Tue, 09 Dec 2025

Tue, 09 Dec 2025 AI tools transform Christmas gifting as shoppers turn to chatbots

Shopper are increasingly using chatbots for their hard-to-buy-for family and friends, with implications for bargain hunters and businesses.
AI-powered shopping is transforming the holiday season, with people increasingly turning to chatbots and other tools for gift ideas and price comparisons. Rachael Dunfell used Copilot, a Microsoft-owned chatbot, to find a unique Christmas gift for her husband's cousin. She inputted his age, hobby, and interest into the chatbot, which suggested a niche retailer selling Viking-themed metal bike parts. AI is expected to drive 21% of all holiday orders globally, with $263 billion in sales. A Coresight survey found that more than half of US consumers would use AI for shopping help, while a CI&T survey found that 61% of UK and Irish consumers have used or are using AI tools for shopping. Retailers are scrambling to make the most of AI channels to promote their products. Businesses feel pressure because AI is already influencing what people buy, and outdated product information can lead to missed recommendations. OpenAI's Instant Checkout feature allows shoppers to buy items directly from chatbots, with partnerships announced with major retailers like Etsy, Shopify, Walmart, Salesforce, and Target. However, there are limitations for shoppers seeking to offload their holiday shopping entirely. Not all retailers have the necessary approval or infrastructure to enable direct purchases within ChatGPT. Analysts say that retailers could draw in shoppers by prioritizing partnerships with AI companies. These agreements can boost brand perception among consumers, particularly among younger and more educated shoppers. Smaller brands like Burlap & Barrel are seeing AI-powered shopping as an opportunity to boost sales. The company's co-founder attributes recent growth to AI searches leading customers to its website. Experts warn that relying on AI for shopping can lead to uninformed purchases, especially if shoppers don't supplement AI-generated results with their own research.
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