AI-Driven Shopping Trends Dominate Holiday Season

Major retail chains and tech companies are rolling out new AI tools for the holiday shopping season, aiming to enhance the gift-buying experience and increase their share of online spending. According to The Seattle Times, AI is expected to influence seventy-three billion dollars, or twenty-two percent of global sales, from the Tuesday before Thanksgiving through the Monday after the holiday, as estimated by Salesforce's director of consumer insights, Caila Schwartz.

This marks an increase from sixty billion dollars last year. Retailers like Walmart, Amazon, and Google are at the forefront, introducing advanced shopping assistants capable of providing personalized recommendations and facilitating unscripted conversations with consumers.

Google's recent launch of an AI agent allows users to call local stores to inquire about product availability. Brad Jashinsky, a senior retail industry analyst at Gartner, cautions that while advancements are significant, the impact of AI on holiday shopping will be limited this year due to varying availability of these tools across platforms and consumer willingness to adopt them.

He notes that changes in customer behavior take time. For instance, OpenAI upgraded ChatGPT to feature a shopping research tool delivering personalized buyer's guides based on user preferences and product information, particularly beneficial for complex purchases like electronics and appliances.

Amazon's shopping assistant, Rufus, remembers user preferences, such as family size and interests, to tailor recommendations. Google's AI Mode has also been enhanced to answer detailed queries naturally, expanding the functionality beyond basic search.

Walmart's Sparky assistant offers occasion-based suggestions, while Target's holiday-exclusive gift finder uses recipient age and hobbies for recommendations. New pricing tools have emerged this season, with Amazon introducing a ninety-day pricing history tracker and price alerts, compelling retailers to keep competitive pricing, according to Jason Goldberg from Publicis Groupe.

The competition intensifies as Amazon, OpenAI, and Google aim to streamline the shopping process, enabling consumers to transition from browsing to purchasing within the same application. OpenAI's new instant checkout feature allows users to buy suggested products directly from ChatGPT, while partnerships with Walmart and Target expand shopping capabilities.

Amazon's Rufus can automatically purchase items through price alerts, notifying users of completed orders, while Google's AI Mode includes a buy-for-me feature for select retailers. Google is also piloting an AI call feature to assist shoppers in obtaining product information from local businesses.

The report highlights that while these innovations are groundbreaking, their full adoption is still in progress as retailers and consumers adjust to the evolving landscape of AI-driven shopping.